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Arabian Business
08-02-2025
- Business
- Arabian Business
Dubai real estate supply; Exclusive Salt Bae interview; Sheikh Hamdan announces well-being resort; UAE deportations; Kuwait announces holiday – 10 things you missed this week
Dubai real estate sales passed $12bn last month and analysts have identified the best performing markets and factors likely to have an impact on prices in the year ahead. Elsewhere in the news Sheikh Hamdan announced a new well-being resort in the city, Brits are flocking to the UAE, Kuwait announced a public holiday and a new iconic hotel revealed its opening dates. Catch up on the biggest stories this week, as selected by Arabian Business editors. Therme Dubai: Sheikh Hamdan announces world's tallest $545mn well-being resort Dubai has unveiled plans for Therme Dubai, set to become the world's tallest well-being resort, as part of its Quality of Life Strategy 2033 launched in May 2024. The AED 2 billion development will feature an interactive park and the world's largest indoor botanical garden. Located at Zabeel Park, the development aims to welcome 1.7 million visitors annually when it opens in 2028. 'In May 2024, Dubai marked a new chapter in its pursuit of enhancing the well-being of its community under His Highness Sheikh Mohammed bin Rashid Al Maktoum's visionary leadership with the launch of the Quality of Life Strategy 2033. This ambitious roadmap aims to establish our city as the world's best place to live,' Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai said via X. Salt Bae: Meet the butcher building a billion-dollar business one golden steak at a time It's a cool Sunday afternoon in Dubai, and the Four Seasons hotel in Jumeirah is alive with quiet preparation. On the hotel's forecourt, valet staff are preparing for an influx of luxury cars that will grace the array of fine-dining restaurants. But there's one that stands out, Nusr-Et steakhouse. In its outdoor seating area, a man casually strolls with a cappuccino in hand. His outfit – a simple white t-shirt tucked into black trousers – might seem ordinary, but on him, it's iconic. Add the signature round sunglasses, and there's no mistaking him. This is Nusret Gökçe, known to the world as Salt Bae. He walks the grounds like a king surveying his castle, calm but focussed. 'We keep growing,' he tells Arabian Business, a smile hinting at the pride behind his words. 'Business never sleeps. Our concept, our brand – everyone is waiting for us.' Dubai real estate supply shortage pushed up property prices and rent last year – will it be the same in 2025? Dubai's real estate market experienced a landmark year in 2024, driven by unprecedented demand in both residential and office sector. As supply struggles to keep pace, the market is seeing record-breaking growth in rents, prices, and transaction volumes according to data from Cushman & Wakefield Core's Dubai Annual Report 2024-2025. With no sign of slowing demand, 2025 will see further increases, despite more stock coming to market, particularly in the residential market. Middle-class Britons join wealth exodus to UAE amid UK economic uncertainty A growing number of middle-class British families are relocating to the United Arab Emirates (UAE), joining an unprecedented exodus of wealthy individuals from the United Kingdom, as concerns mount over Britain's economic outlook and changes to tax policies. The trend marks a significant shift from historical migration patterns that typically saw only high-net-worth individuals and senior executives moving to the Gulf state, according to property experts and wealth managers interviewed by Arabian Business. 'In the past, people that were moving to Dubai were high earners, professionals, or people with a lot of family wealth,' said Asad Khan, CEO of Invest Dubai Real Estate (IDRE). 'But now, we see many middle-class families moving over from all walks of life – different backgrounds and different professions.' Influencers flock to Dubai 'faster than brunch reservations on a Saturday' fuelled by Golden Visas, zero income tax, luxury lifestyle Dubai has become a hub for global influencers in recent years with an increase in the relocation of social media stars to the city, predominantly from the US, Asia and Europe. Industry experts attribute the rising interest to several factors including tax-free income, infrastructure and policies that contribute to growth, exposure and lifestyle benefits. ' Influencers are arriving faster than brunch reservations fill up on a Saturday. Every day, new digital personalities touch down at DXB with a dream, a camera, and a game plan,' Samet Özetçi, co-founder, Walther Kranz Agency said in an exclusive interview with Arabian Business. The UAE is currently home to over 25,000 influencers with follower counts ranging from 1,000 to one million, according to a recent report. A Dubai real estate agent has sold three full buildings in just seven hours at one of the city's fastest-growing developments. Kamil Magomedov, a leading agent at Provident Real Estate, successfully sold the buildings at Expo City. The landmark transaction highlights the growing significance of Expo City as Dubai's next major business and residential hub. Jumeirah Group's superyacht-inspired Marsa Al Arab in Dubai opens for bookings from March 14 Jumeirah Group has announced bookings are now open for its latest ultra-luxury development Marsa Al Arab, with the superyacht-inspired resort set to welcome its first guests on March 14, 2025. Located on a prime peninsula next to Dubai's iconic Burj Al Arab, the new property represents one of the city's most significant hospitality launches in recent years, featuring 386 rooms, suites and penthouses, each with panoramic terraces overlooking either the Arabian Gulf or city skyline. Designed by Shaun Killa, the architect behind Dubai's Museum of the Future, the nautical-themed resort will house an extensive food and beverage portfolio comprising 11 restaurants and four bars under one roof. Dubai real estate sales pass $12bn in January as one surprise sector leaps over 151% Dubai's real estate market has made a strong start to 2025, with property sales in January totalling AED44.4bn ($12.1bn), a 24.1 per cent increase in value on the same month last year. A market update issued today by fäm Properties reveals that last month's total of 14,236 transactions also represented a 23.2 per cent increase in volume over January 2024. Land sales for January showed the biggest increase, with 811 plots – a 151.9 per cent month-on-month leap in volume – selling for AED8.6bn ($2.3bn). UAE to deport 6,000 visa violators after extended amnesty The UAE has arrested and will deport 6,000 residency visa violators following an extended amnesty at the end of 2024. The Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP) conducted 270 inspection campaigns across the UAE in January 2025 under the slogan 'Towards a Safer Society' to apprehend violators of the country's entry and residency laws. This initiative aimed to ensure compliance with residency and foreign affairs regulations following the end of the grace period, which ran from September 1 to December 31 2024, allowing violators to rectify their status. Kuwait announces 5-day holiday Kuwait has announced a five-day public holiday to be marked at the end of this month. The holiday was announced by the Cabinet as part of its weekly meeting. The decision declares Tuesday, February 25 to Thursday, February 27 as holidays marking National and Liberation Days 2025.
Zawya
31-01-2025
- Business
- Zawya
Record demand-supply gap in Dubai real estate
Dubai: Dubai's real estate market experienced a landmark year in 2024, driven by unprecedented demand in both residential and office sector. As supply struggles to keep pace, the market is seeing record-breaking growth in rents, prices, and transaction volumes according to data from Cushman & Wakefield Core's Dubai Annual Report 2024-2025. With no sign of slowing demand, 2025 will see further increases, despite more stock coming to market, particularly in the residential market. Looking ahead to 2026/2027, major project completions, and regulatory adjustments will help address the imbalance, bringing more stability to the market and reinforcing Dubai's position as a global real estate investment hub. Key takeaways: Supply struggles to keep pace Just 30,200 residential units handed over in 2024, 11% down on 2024 forecasts and 30% lower than 2023. Dubai holds second-highest global office occupancy levels at 92% and expected to exceed 94% by end-2025. Record-breaking price and rental increases Citywide residential rents and sales prices increased by 16% and 18% year-on-year, respectively. Office rents surged by 22% year-on-year in 2024, with further increases of 10-12% forecast for 2025. Accessing large office space is a particular challenge for major occupiers, forcing them to act quickly on transactions or consider emerging locations. Ultra-prime residential sales hit record highs as Dubai sees the largest influx of millionaires globally. New waterfront districts present investment opportunities but questions remain around long-term value in comparison to iconic Palm Jumeirah 'With off-plan transactions now more than double those in the secondary market, Dubai's residential market is becoming increasingly investor-driven,' says Prathyusha Gurrapu, Head of Research & Consulting at Cushman & Wakefield Core. This trend is pricing a segment of end-users out of the market, as off-plan activity becomes skewed toward investors. Rising inflation and growing affordability challenges, particularly in the rental market, are driving a shift toward suburban areas and the Northern Emirates - in turn, creating opportunities for investors and developers as local neighbourhood infrastructure grows.' 'We saw significant transactions within the commercial real estate space in 2024, including the highest ever single-buyer commercial development transaction at AED 2.3 Billion - Aldar's acquisition of one of the largest commercial towers in DIFC. This institutional level of interest has been replicated in the strata market with successful launches of off-plan commercial projects and further announcements on the horizon,' says Robert Thomas, Head of Agency at Cushman & Wakefield Core. Surge in new supply still won't fully meet demand in 2025; Moderation expected in 3-5 years 2025 will see a forecasted 41% y-o-y surge in residential handover volumes with over 42,000 units, bringing some relief to the market; moderate increase in rent and sales prices of less than 10% expected as supply pipeline builds. There was the equivalent of one residential project launch every 15 hours in 2024, providing strong future supply. Double the amount of new office supply expected in 2025 compared to 2024 (1.66 million sq. ft.) but the market is expected to remain undersupplied until 2027/2028. DIFC responsible for a third of the total city-wide office supply over the next 3 years – most of which is expected to be pre-leased due to unrelenting demand. " We're seeing an incredible surge in demand for office space in Dubai, with more companies entering the market and existing tenants looking to expand,' says Robert Thomas, Head of Agency at Cushman & Wakefield Core. ' While the supply pipeline is stronger this year, much of it is pre-leased or focused in specific freezones, which is adding to the pressure. Many of our clients are now taking a strategic approach - maximizing the use of their existing spaces or exploring newer zones like Dubai CommerCity and Expo City Dubai to meet their needs." Regulatory updates to help address imbalances By reflecting real-time trends, the updated RERA index will support regulatory clarity and reinforce confidence across Dubai's residential and commercial real estate market, helping stabilise the rental increases while also encouraging landlords to upgrade assets to maximise benefits. While the January 2025 UAE Central Bank directive - introducing a 6% additional down payment for mortgage buyers from February 1st - will influence some segments of the market. ' While the most recent regulatory updates will vary in impact, we will start to see them help address market imbalances, encouraging asset upgrades, and strengthening Dubai's position as a global real estate leader,' says Prathyusha Gurrapu, Head of Research & Consulting at Cushman & Wakefield Core. 'The recent DLD freehold ownership expansion along Sheikh Zayed Road and Al Jaddaf is a significant development and could soon extend to other established leasehold areas, driving up asset values and diversifying the owner-occupier mix. That said, the question remains: will GCC landlords sell, especially for developed properties with high rental yields and little to no debt?' 'This month's announcement on additional mortgage downpayments may slow down mortgage transactions, particularly for mid-market end-users but the overall impact on Dubai's residential market is expected to be minimal, as off-plan and cash transactions continue to dominate activity.'
