Latest news with #Dhs
Gulf Business
19 hours ago
- Business
- Gulf Business
Dubai's commercial property boom: Areas you should be investing in
Image credit: Supplied Dubai's commercial real estate market has demonstrated remarkable resilience and growth in the second quarter of 2025, driven by soaring transaction values and a shift towards premium properties. Despite a slight dip in transaction volume, the total value of commercial sales climbed sharply, reflecting increased investor confidence and a maturing market. This upward trajectory signals Dubai's continuing emergence as a dynamic hub for commercial property investment in the region. Commercial sales value hits Dhs31.03bn The total value of commercial real estate transactions in Dubai reached Dhs31.03bn in Q2 2025, marking a substantial 50 per cent increase compared to Dhs20.75bn recorded in the same period last year. This growth highlights a robust demand for commercial assets and underscores investors' confidence in Dubai's property sector, Read- However, while the value of sales surged, the overall volume of transactions saw a slight decline. The number of commercial property sales dropped by 1 per cent to 2,883 deals from 2,915 in Q2 2024. This suggests a market increasingly driven by fewer but larger and more valuable deals. Quarter-on-quarter, the value of transactions rose by 6 per cent compared to Q1 2025, which registered Dhs 29.25bn. In contrast, the transaction volume declined by 14 per cent, falling from 3,350 sales in Q1 to 2,883 in Q2. These figures indicate a clear trend towards high-value sales dominating the market, possibly driven by the sale of larger commercial assets and prime locations. Overall, the commercial real estate sector in Dubai shows signs of steady maturation, with rising transaction values balancing out the slight contraction in deal volume. Office market: Strong growth despite slight quarterly dip The office segment within Dubai's commercial real estate sector has been a standout performer in Q2 2025. Total office sales surged to Dhs 2.62bn during the quarter, representing an impressive 93 per cent increase compared to Dhs 1.36bn in Q2 2024. This dramatic rise underlines sustained demand for office spaces fueled by business expansion, increased foreign investment, and a recovering post-pandemic economy. The number of office units sold also climbed, with 965 transactions recorded, up 26 per cent from 764 units in Q2 2024. The simultaneous growth in both value and volume demonstrates a healthy and active office market, reflecting investor and tenant confidence. However, quarter-on-quarter figures show a slight contraction in value, with office transactions dropping 5 per cent from Dhs 2.77bn in Q1 2025. Despite this, transaction volume rose marginally by 3 per cent from 933 to 965 sales, suggesting a shift towards a higher number of mid-tier office deals. This could indicate changing buyer preferences and pricing adjustments within the market. The office segment's strong year-on-year growth and steady quarterly activity underscore its resilience and continuing appeal to investors and businesses alike. Business Bay dominates as top office location Office transactions in Dubai during Q2 2025 were heavily concentrated in key business districts, with the top five locations accounting for nearly 90 per cent of all sales. Business Bay led the market with 356 transactions, representing 36.9 per cent of total office sales. This reaffirms Business Bay's status as Dubai's premier commercial hub, thanks to its strategic location and modern office infrastructure that attracts both local and international investors. Following closely was Jumeirah Lake Towers (JLT), with 312 transactions, or 32.3 per cent of the total. JLT's accessibility and variety of office sizes continue to make it popular among small and medium enterprises as well as established companies. Motor City ranked third with 86 transactions (8.9 per cent). Its rising popularity reflects growing demand for suburban office options offering competitive pricing and easier commutes. Barsha Heights (Tecom) came in fourth with 72 sales, accounting for 7.5 per cent of transactions. Its proximity to key transport links supports its strong performance. Dubai Silicon Oasis rounded out the top five, with 36 transactions (3.7 per cent). The free zone's focus on tech and innovation appeals to startups and technology firms. These leading districts clearly dominate Dubai's office market, highlighting a strong preference for established and well-connected business hubs. Upcoming supply and off-plan projects signal future growth Looking ahead, Dubai's office market is set to benefit from a significant influx of new supply, with an estimated 680,000 square metres expected to be delivered by 2027. New developments will focus on key areas such as Business Bay, Motor City, Majan, and Dubailand — all of which have seen rising demand recently. The off-plan segment is also gaining momentum. In Q1 2025, off-plan transactions reached Dhs 800m ($218m), and this figure is projected to rise as new projects enter the market. Among the upcoming developments, Omniyat's Lumena project stands out. This luxury Grade A office building will offer 91 office units across 582,000 square feet, featuring world-class amenities such as the region's first-ever Sky Theatre, a wellness suite, a private members' club, and 19 high-speed elevators. Lumena is expected to attract premium tenants looking for cutting-edge workspaces. Dubai's commercial real estate market shows strength and maturity Dubai's commercial real estate market has delivered strong results in Q2 2025, with transaction values reaching record highs despite a slight dip in deal volume. The surge in high-value commercial property sales, combined with robust growth in the office segment, signals a healthy and evolving market. Key business districts continue to dominate transactions, underscoring Dubai's role as a major commercial hub. Meanwhile, significant new supply and off-plan projects are poised to sustain the market's growth trajectory over the next few years. As investor confidence remains high and demand for premium office space grows, Dubai's commercial real estate sector is well-positioned for continued expansion and increased market sophistication.
Gulf Business
20 hours ago
- Business
- Gulf Business
Dubai's commercial property boom: Why investors shouldn't miss out
Image credit: Supplied Dubai's commercial real estate market has demonstrated remarkable resilience and growth in the second quarter of 2025, driven by soaring transaction values and a shift towards premium properties. Despite a slight dip in transaction volume, the total value of commercial sales climbed sharply, reflecting increased investor confidence and a maturing market. This upward trajectory signals Dubai's continuing emergence as a dynamic hub for commercial property investment in the region. Commercial sales value hits Dhs31.03bn The total value of commercial real estate transactions in Dubai reached Dhs31.03bn in Q2 2025, marking a substantial 50 per cent increase compared to Dhs20.75bn recorded in the same period last year. This growth highlights a robust demand for commercial assets and underscores investors' confidence in Dubai's property sector, Read- However, while the value of sales surged, the overall volume of transactions saw a slight decline. The number of commercial property sales dropped by 1 per cent to 2,883 deals from 2,915 in Q2 2024. This suggests a market increasingly driven by fewer but larger and more valuable deals. Quarter-on-quarter, the value of transactions rose by 6 per cent compared to Q1 2025, which registered Dhs 29.25bn. In contrast, the transaction volume declined by 14 per cent, falling from 3,350 sales in Q1 to 2,883 in Q2. These figures indicate a clear trend towards high-value sales dominating the market, possibly driven by the sale of larger commercial assets and prime locations. Overall, the commercial real estate sector in Dubai shows signs of steady maturation, with rising transaction values balancing out the slight contraction in deal volume. Office market: Strong growth despite slight quarterly dip The office segment within Dubai's commercial real estate sector has been a standout performer in Q2 2025. Total office sales surged to Dhs 2.62bn during the quarter, representing an impressive 93 per cent increase compared to Dhs 1.36bn in Q2 2024. This dramatic rise underlines sustained demand for office spaces fueled by business expansion, increased foreign investment, and a recovering post-pandemic economy. The number of office units sold also climbed, with 965 transactions recorded, up 26 per cent from 764 units in Q2 2024. The simultaneous growth in both value and volume demonstrates a healthy and active office market, reflecting investor and tenant confidence. However, quarter-on-quarter figures show a slight contraction in value, with office transactions dropping 5 per cent from Dhs 2.77bn in Q1 2025. Despite this, transaction volume rose marginally by 3 per cent from 933 to 965 sales, suggesting a shift towards a higher number of mid-tier office deals. This could indicate changing buyer preferences and pricing adjustments within the market. The office segment's strong year-on-year growth and steady quarterly activity underscore its resilience and continuing appeal to investors and businesses alike. Business Bay dominates as top office location Office transactions in Dubai during Q2 2025 were heavily concentrated in key business districts, with the top five locations accounting for nearly 90 per cent of all sales. Business Bay led the market with 356 transactions, representing 36.9 per cent of total office sales. This reaffirms Business Bay's status as Dubai's premier commercial hub, thanks to its strategic location and modern office infrastructure that attracts both local and international investors. Following closely was Jumeirah Lake Towers (JLT), with 312 transactions, or 32.3 per cent of the total. JLT's accessibility and variety of office sizes continue to make it popular among small and medium enterprises as well as established companies. Motor City ranked third with 86 transactions (8.9 per cent). Its rising popularity reflects growing demand for suburban office options offering competitive pricing and easier commutes. Barsha Heights (Tecom) came in fourth with 72 sales, accounting for 7.5 per cent of transactions. Its proximity to key transport links supports its strong performance. Dubai Silicon Oasis rounded out the top five, with 36 transactions (3.7 per cent). The free zone's focus on tech and innovation appeals to startups and technology firms. These leading districts clearly dominate Dubai's office market, highlighting a strong preference for established and well-connected business hubs. Upcoming supply and off-plan projects signal future growth Looking ahead, Dubai's office market is set to benefit from a significant influx of new supply, with an estimated 680,000 square metres expected to be delivered by 2027. New developments will focus on key areas such as Business Bay, Motor City, Majan, and Dubailand — all of which have seen rising demand recently. The off-plan segment is also gaining momentum. In Q1 2025, off-plan transactions reached Dhs 800m ($218m), and this figure is projected to rise as new projects enter the market. Among the upcoming developments, Omniyat's Lumena project stands out. This luxury Grade A office building will offer 91 office units across 582,000 square feet, featuring world-class amenities such as the region's first-ever Sky Theatre, a wellness suite, a private members' club, and 19 high-speed elevators. Lumena is expected to attract premium tenants looking for cutting-edge workspaces. Dubai's commercial real estate market shows strength and maturity Dubai's commercial real estate market has delivered strong results in Q2 2025, with transaction values reaching record highs despite a slight dip in deal volume. The surge in high-value commercial property sales, combined with robust growth in the office segment, signals a healthy and evolving market. Key business districts continue to dominate transactions, underscoring Dubai's role as a major commercial hub. Meanwhile, significant new supply and off-plan projects are poised to sustain the market's growth trajectory over the next few years. As investor confidence remains high and demand for premium office space grows, Dubai's commercial real estate sector is well-positioned for continued expansion and increased market sophistication.
Gulf Today
3 days ago
- Business
- Gulf Today
ADFD advances Maldives aviation sector through inauguration of Velana International Airport project
Aligned with its commitment to its strategic sustainable development goals, Abu Dhabi Fund for Development (ADFD) participated in the inauguration of the Velana International Airport, a landmark project that aims to significantly enhance Maldives' infrastructure. With a total investment of Dhs 330.5 million (USD 90 million) from ADFD, the project was implemented in two phases, receiving co-financing from Saudi Fund for Development, Kuwait Fund for Arab Economic Development, and OPEC Fund for International Development. This cooperation highlights the shared commitment of regional development institutions to support high impact projects in developing nations to contribute to an inclusive, sustainable growth. Attending the inauguration ceremony, which coincided with Maldives' 60th independence anniversary, were Dr. Mohamed Muizzu, President of the Republic of Maldives, Mohamed Saif Al Suwaidi, Director-General of ADFD, and Rahma Bin Abdulrahman Al Shamsi, UAE Ambassador to the Republic of Maldives, along with senior officials from both nations and from Saudi Fund for Development, Kuwait Fund for Arab Economic Development, and OPEC Fund for International Development. ADFD's funding played a critical role in enhancing the operational capacity of Velana International Airport, accommodating over 7 million passengers annually meeting the nation's growing travel demand. The project included the expansion of the airport's western passenger terminal, the implementation of 26 passenger boarding bridges, and the construction of a state-of-the-art international terminal. These enhancements reinforce the Maldives' position as a key hub for commercial, tourism, and investment activities, and underscore the Fund's commitment to supporting impactful, sustainable projects that improve the quality of life in communities. Dr. Mohamed Muizzu, President of the Republic of Maldives, during the ceremony, expressed his sincere appreciation to His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, for the continuous support from the UAE to advance Maldives' national goals. He said: 'ADFD's financing of Velana International Airport, in partnership with international collaborators, reflects our shared commitment to achieving sustainable development goals and demonstrates a long-term strategic vision for infrastructure development and growth in developing nations. The opening of this airport will further enhance the Maldives' position in the global aviation sector.' Mohamed Saif Al Suwaidi, Director-General of ADFD, highlighted that this collaborative development is a testament to ADFD's dedication to supporting the sustainable development goals of its partner nations. He reaffirmed the Fund's mission towards strengthening strategic partnerships between regional development institutions and international organizations, fostering broader and more sustainable developmental impacts. Al Suwaidi said: 'Through our partnership with the Government of Maldives and regional development institutions, we have collectively contributed to country's economic and social growth. Coinciding with the Maldives' Independence Day celebrations, the inauguration of Velana International Airport underscores our ongoing commitment to ensuring greater resource efficiency and supporting our partner nations to build a resilient economy and prosperous future.' ADFD's partnership with Maldives dates to 1978. Over the past four decades, the Fund financed 11 strategic projects with a total investment of Dhs 1.11 billion, spanning across key sectors including transportation, tourism, healthcare, and energy. ADFD played a critical role in supporting Maldives' economic activities and enabling the country to achieve its sustainable development objectives. WAM
Gulf Today
5 days ago
- Business
- Gulf Today
Bank investments in UAE cross Dhs774 billion by end of April 2025
Investments by banks operating in the UAE continued their upward trend, reaching Dhs774.3 billion by the end of April 2025. This marks a 16.2% annual increase compared to April 2024 and a 1.4% rise from March 2025. According to banking indicators released by the Central Bank of the UAE (CBUAE), investments in debt securities grew to Dhs352.4 billion by the end of April. Meanwhile, securities held to maturity totalled Dhs345.8 billion. Banks also invested Dhs19.3 billion in stocks and Dhs56.8 billion in other investment instruments. Total bank credit rose to over Dhs2.259 trillion, reflecting an annual growth of 9.5%. Of this, domestic credit accounted for approximately Dhs1.881 trillion, while foreign credit reached Dhs378.3 billion. Bank deposits exceeded Dhs2.965 trillion, comprising Dhs2.689 trillion in resident deposits, Dhs275.6 billion in non-resident deposits. A breakdown of investments by emirate noted that Abu Dhabi banks took the lead with Dhs 408.9 billion, followed by Dubai with Dhs 296 billion, and other emirates at Dhs69.5 billion. According to the Summary Report - Monetary & Banking Developments - April 2025 issued recently by the Central Bank of the UAE the total banking sector assets in the UAE, including bankers' acceptances, rose by 0.6 per cent month-on-month to exceed Dhs4.749 trillion at the end of April 2025, up from approximately Dhs4.719 trillion at the end of March. According to the report total bank credit increased by 0.9 per cent to surpass Dhs2.259 trillion at the end of April, compared to Dhs2.240 trillion at the end of March, driven by a rise of Dhs12.3 billion in domestic credit and Dhs7.1 billion in foreign credit. The growth in domestic credit was attributed to a 0.7 per cent increase in credit to the government sector, a 1.2 per cent increase to the public sector (government-related entities), and a 0.6 per cent increase to the private sector. Meanwhile, credit to non-banking financial institutions declined by 4.3 per cent. Total bank deposits also rose by 1 per cent month-on-month to exceed Dhs2.965 trillion at the end of April, compared to Dhs2.936 trillion at the end of March. This increase was driven by a 0.1 per cent rise in resident deposits, which reached over Dhs2.689 trillion, in addition to a 10.9 per cent increase in non-resident deposits to Dhs275.6 billion. Within resident deposits, government sector deposits rose by 0.9 per cent, and private sector deposits increased by 1.1 per cent. However, deposits from non-banking financial institutions fell by 9.2 per cent, and deposits from government-related entities declined by 6.5 per cent. The central bank also reported a 2.6 per cent increase in the monetary aggregate M1, which reached Dhs1.0119 trillion at the end of April, up from Dhs986.2 billion at the end of March. This was due to a Dhs26.9 billion increase in monetary deposits, which offset a Dhs1.2 billion decline in currency in circulation outside banks. Conversely, the M2 aggregate declined by 0.1 per cent to Dhs2.435 trillion at the end of April, compared to Dhs2.4377 trillion in March, driven by a Dhs27.8 billion fall in quasi-monetary deposits. The M3 aggregate increased by 0.2 per cent from Dhs2.8937 trillion in March to Dhs2.8982 trillion in April, mainly due to a Dhs6.6 billion increase in government deposits. Data also showed a 1.7 per cent decline in the monetary base, from Dhs833.1 billion in March to Dhs819 billion in April, attributed to a 2.5 per cent drop in issued currency and a 32.0 per cent fall in reserve accounts, despite a significant 159.8 per cent surge in current accounts and overnight deposits held by banks and other financial institutions at the central bank, as well as a 3.1 per cent rise in monetary bills and Islamic certificates of deposit. Meanwhile, the central bank's foreign assets increased to Dhs937.5 billion at the end of April, compared to Dhs935.2 billion at the end of March. As of the end of April, these foreign assets comprised Dhs403.2 billion in bank balances and deposits abroad, Dhs490.1 billion in foreign securities, and Dhs44.1 billion in other foreign assets. The central bank's balance sheet totalled Dhs972.3 billion, with liabilities and capital consisting of Dhs449.1 billion in current accounts and deposit accounts, Dhs279.9 billion in monetary bills and Islamic certificates of deposit, Dhs165.2 billion in currency notes and coins in circulation, Dhs33.2 billion in other liabilities, and Dhs45 billion in capital and reserves. On the asset side, the balance sheet comprised Dhs210.9 billion in cash and bank balances, Dhs208 billion in deposits, Dhs516.8 billion in investments, Dhs0.5 billion in loans and advances, and Dhs36.2 billion in other assets. Meanwhile, Commercial Bank of Dubai (CBD) has announced its financial results for the second quarter and first half of 2025, achieving a remarkable milestone of 20 consecutive quarters of profit growth. The Bank reported a net profit before tax of Dhs1.862 billion, representing a 16.7 per cent increase compared to the same half last year. WAM
Gulf Today
6 days ago
- Business
- Gulf Today
Ultra-luxurious 8-bedroom mansion on Abu Dhabi's Saadiyat Island sells for Dhs400 million
Aldar announced today the record-breaking sale of an eight-bedroom ultra-luxury mansion in Faya Al Saadiyat—an exclusive beachfront community located on one of the last remaining villa plots on Saadiyat Island—for Dhs 400 million, making it the most valued home ever sold in Abu Dhabi. The sale reflects the sustained growth of Abu Dhabi's luxury real estate market, driven by strong demand from high-net-worth individuals (HNWIs), long-term residents, and international investors. It follows the Dhs 137 million sale of Aldar's Nobu Residences Abu Dhabi penthouse on Saadiyat Island. With Abu Dhabi's population surpassing four million, Saadiyat Island has established itself as the most sought-after destination in the emirate. In H1 2025, Aldar recorded Dhs 5 billion in sales on Saadiyat Island, reflecting exceptional interest from local and international buyers. Expatriates accounted for 86% of buyers, including 46% residents and 40% non-residents, with the top nationalities comprising Russia, France, United Kingdom, China and United States. The mansion as a serene beachfront. Located directly on Saadiyat Island's pristine beach and within the award-winning Saadiyat Beach Golf Club, the Faya Al Saadiyat mansion offers the highest standards of luxury and the largest allocation of space on the island, spanning 6,561 sqm. This signature ultra-luxury residence blends architectural sophistication with complete privacy and uninterrupted 360-degree views of water and greenery. Jonathan Emery, Chief Executive Officer at Aldar Development, said: 'This record transaction at Faya Al Saadiyat sets a new benchmark for luxury real estate in Abu Dhabi and underscores the strong demand for ultra-premium, beachfront homes in the emirate. Recognised as the crown jewel of Abu Dhabi's luxury real estate, Saadiyat Island continues to attract homebuyers and investors from around the world. This sustained momentum reflects the success of Abu Dhabi's long-term vision, enabled by progressive government policies, long-term residency initiatives, and strategic investment in infrastructure, culture, and entertainment.' Ghazi Saeed Al Ateibi, Executive Director Real Estate Transactions Sector at ADREC, said: 'Abu Dhabi is recognized as a world leading destination for global real estate investments, driven by growing trust in a market that is well-regulated, transparent, and investor-friendly. A road leads to Faya Al Saadiyat. At ADREC, our role is to safeguard this ecosystem by upholding strong governance, regulatory oversight, and seamless processes across the sector. Transactions of this scale reflect the strength of a maturing market and the effectiveness of a regulatory framework we've put in place designed to support and attract responsible, high-value investment.' Behind the striking contemporary façade, the mansion redefines bespoke living with a collection of world-class amenities, including a private car gallery, a golf simulator, an in-house cinema, and sophisticated wellness and fitness suites, alongside direct access to one of the UAE's most desirable beaches. Faya Al Saadiyat is thoughtfully designed by the globally acclaimed 1508 London Interior Design Studio—renowned for crafting the interiors of The OWO Residences by Raffles, part of the iconic transformation of London's historic Old War Office—and Nordic Office Architects, a homegrown design studio known for reshaping regional skylines with globally informed design. An aerial view of the Faya Al Saadiyat. The design draws inspiration from Saadiyat Island's natural beauty and distinctive wildlife, combining indigenous materials with minimalist aesthetics and expansive open-plan layouts. This architectural masterpiece features Italian-made kitchens and wardrobes, bespoke joinery, and state-of-the-art appliances. Outdoors, a private beachfront pool anchors expansive living and recreational areas, framing serene views of the surrounding golf course and the pristine shores of Saadiyat Beach. Faya Al Saadiyat is an exclusive luxury gated community of 21 super-luxury homes, including two eight-bedroom mansions and 19 six- to seven- bedroom villas, scheduled for completion in 2028. Residents enjoy seamless access to Saadiyat Cultural District, home to world-renowned institutions such as the Louvre Abu Dhabi, teamLab Phenomena, and the upcoming Guggenheim Abu Dhabi, as well as a curated mix of premium hospitality, retail, and dining offerings, including the highly anticipated Saadiyat Grove. The development is targeting the Estidama 3 Pearl rating and Fitwel certification, with sustainability embedded across the masterplan through features that promote energy efficiency, water conservation, reduced carbon emissions, and enhanced resident well-being.
