Latest news with #HaiderTuaima
Zawya
23-07-2025
- Business
- Zawya
ValuStrat's latest report: Dubai residential sales surge with moderating price growth and increasing affordability pressures
The latest Dubai 2nd quarter real estate review report from ValuStrat, a globally recognised consultancy specialising in multi-sector advisory services, has revealed insightful dynamics in Dubai's real estate market. The report comprehensively analyses the residential, commercial, and hospitality sectors and underscores a market showing robust growth and market activity. Haider Tuaima, Managing Director and Head of Real Estate Research, shares his synopsis of Dubai's real estate market. According to him, there is a deceleration in price growth and growing affordability pressures. The quarter marked a significant milestone with nearly 37,000 off-plan transactions, averaging over AED 3.1 million per unit. Ready home sales also saw a 10.4% quarterly increase, driven by robust activity in April and May, reaching a record 13,700 title deed registrations, with an average price of AED 2.7 million. The estimated number of new homes scheduled for delivery in 2025 has been revised to 66,596 units. The first half of the year saw approximately 17,500 homes completed, equivalent to less than a third of the annual forecast. According to the ValuStrat Price Index (VPI), capital values in Dubai's freehold residential market continued to grow, though at a slower pace compared to 2024. Apartment prices rose by 19.1% YoY, while villa prices increased by 28.7%. This marks a slowdown compared to the same period last year, when apartment prices had risen by 23.4% and villa prices by 33.4%. Rental growth also moderated, with villa rents up 4.8% and apartment rents up 7.2% annually. Demand for office space remained strong, supported by sustained economic growth and business expansion. Office capital values grew 4.9% QoQ and 23.7% YoY, compared to 31.7% annual growth in 2024. In the industrial segment, logistics warehouses led performance, with 16.2% annual and 4.1% quarterly capital gains, underscoring continued strength in the sector. He concludes that as supply ramps up in the second half of the year, close attention will be needed to monitor its impact on pricing dynamics. Nonetheless, the outlook remains positive across residential, office, and industrial sectors. To learn more about ValuStrat's real estate market capabilities and our research outputs, please visit ValuStrat's Insights Webpage. About ValuStrat: ValuStrat is an international consulting group providing Advisory, Valuations, Research, Transaction Advisory, Due Diligence and Industrial Consulting services, working across various industry sectors. With 45+ years of experience, a network of 16 offices in 5 countries and a client base of 1,000 corporations across the Middle East, UK, Europe and Africa, ValuStrat assists diverse clients, from governments, multinationals, large local corporations and financial institutions to startups, SMEs and family businesses. For Valuation services, it is the preferred service provider to over 120 financial institutions across the EMEA region.
Khaleej Times
22-07-2025
- Business
- Khaleej Times
Dubai realty breaks records in Q2 despite cooling prices
Dubai's real estate sector delivered a record-breaking performance in the second quarter of 2025, with surging transaction volumes and resilient investor appetite, even as price growth showed signs of deceleration and affordability constraints began to surface. The market's dynamism was underpinned by strong off-plan sales, sustained demand for office and logistics space, and proactive government initiatives to boost homeownership. According to ValuStrat's Q2 research, property sales in Dubai hit new highs with nearly 37,000 off-plan transactions, averaging over Dh3.1 million per unit. Ready home sales also rose by 10.4 per cent from the previous quarter, registering 13,700 title deed transactions with an average price of Dh2.7 million. This momentum was particularly driven by robust activity in April and May. The ValuStrat Price Index (VPI) reflected continued but moderated capital appreciation. Apartment prices rose 19.1 per cent year-on-year, compared to 23.4 per cent in the same period last year. Villas saw a 28.7 per cent annual gain, also slower than the 33.4 per cent growth recorded in 2024. The VPI for apartments reached 188 points, and for villas, it climbed to 220 points — more than double the Q1 2021 baseline. Despite increasing supply, with 17,500 new homes completed in the first half and 66,596 units expected to be delivered in 2025, demand continues to outstrip supply in key segments. ValuStrat's head of real estate research, Haider Tuaima, noted that the elevated transaction activity highlights strong market confidence, though the impact of upcoming supply on pricing dynamics warrants close monitoring in the second half of the year. Rental growth, too, appears to be moderating. Apartment asking rents rose by 1.2 per cent quarterly and 7.2 per cent annually, with average annual rents at Dh95,500. Villa rents remained stable on a quarterly basis but were up 4.8 per cent year-on-year, averaging Dh428,000 annually. The overall VPI for residential rents rose by 1 per cent quarter-on-quarter and 6.2 per cent annually to reach 200.3 points. The office segment continued to show remarkable strength amid a supply-constrained environment. Capital values for office space rose 4.9 per cent quarter-on-quarter and 23.7 per cent year-on-year, compared to a 31.7 per cent annual rise in 2024. The banking, finance, and tech sectors are the major demand drivers. CBRE noted that average office rents in Dubai jumped more than 20 per cent year-on-year, with occupancy nearing full capacity in prime business districts. CBRE also reported a surge in residential transaction volumes, which climbed 23 per cent year-on-year in H1 2025. The total value of residential sales reached Dh270 billion. The launch of Dubai's First-Time Home Buyer Programme, which offers incentives such as flexible payment plans and preferential pricing, is expected to further encourage end-user demand and widen homeownership in the emirate. In terms of economic context, the UAE's GDP is forecast to grow 5.1 per cent in 2025, up from 3.8 per cent in 2024. This economic expansion is backed by recovering oil output, strong non-oil sector performance, and a resilient tourism sector. Dubai saw a 7 per cent year-on-year rise in international visitors between January and May, reinforcing the strength of the hospitality and retail segments. The industrial and logistics market is also flourishing. ValuStrat reported 16.2 per cent annual and 4.1 per cent quarterly capital gains for logistics warehouses, driven by sustained demand and high occupancy rates. CBRE added that strong rental growth and landlord-favorable market conditions are attracting heightened investor interest in Grade A industrial assets, signaling potential for more liquidity and development in the sector. In Abu Dhabi, the property market is showing parallel momentum. Apartment values rose by 18 per cent year-on-year, while villa prices gained nearly 14 per cent. The capital's office market is also seeing increased traction from international corporates, with occupancy and rents on the rise. Matthew Green, head of research for Mena at CBRE, attributed the UAE's real estate resilience to its diversified economy and progressive policy frameworks. 'The country continues to attract high-net-worth individuals, bolster foreign direct investment, and lead in innovation — all of which reinforce demand across residential, commercial, and industrial segments,' he said. Real estate market experts believe that with strategic government initiatives, strong demographic and investor fundamentals, and a proactive approach to urban development, Dubai's real estate market is poised to sustain its momentum through the remainder of 2025 — even as it gradually transitions from breakneck growth to more sustainable long-term expansion.
The National
08-07-2025
- Business
- The National
Dubai's villa values jump 180% above post-pandemic levels
Dubai's freehold villas are valued at 180 per cent above post-pandemic levels and apartment valuations are 73 per cent higher since the pandemic as the emirate's property sector continues to boom, a new report has found. Villa capital values grew 1.9 per cent monthly in June, with an annual gain of 28.7 per cent, real estate consultancy ValuStrat said in its latest report. The strongest annual performers included villas in Jumeirah Islands (41.1 per cent), Palm Jumeirah (40.5 per cent), Emirates Hills and The Meadows, both at 27.5 per cent. The lowest annual gains were recorded for villas in Mudon at 8.1 per cent. Apartment prices rose by 1.1 per cent monthly in June, recording an annual growth of 19.1 per cent, ValuStrat said. The highest yearly capital gains were seen in The Greens (24.4 per cent), Dubai Silicon Oasis (23.4 per cent), Dubailand Residence Complex (23.3 per cent), Palm Jumeirah (22.9 per cent) and Town Square (22.4 per cent), the report found. In contrast, the lowest capital value increases were recorded in International City (11.2 per cent) and Business Bay (15.8 per cent). 'The market is showing signs of maturity, though momentum may slow through the second half of 2025,' said Haider Tuaima, managing director and group head of real estate research at ValuStrat. 'While several slowdowns in sales were observed over the past 12 months, June recorded fewer transactions than May. However, both off-plan and ready sales posted positive growth on an annual and quarterly basis. One factor contributing to the decline in ready sales is the growing number of end-users purchasing homes, which reduces the available resale inventory.' The real estate market in Dubai is set to enter a "moderate correction' in the second half of 2025 because of a record number of project launches, Fitch Ratings said in a report in May. The correction – a phase in which price of an asset declines by 10 per cent or more – would run through 2026, but is not expected to exceed 15 per cent, as the strength of the prime real estate segment will support the rest of the market, the New York-based ratings agency said. Real estate prices in the emirate, the commercial and financial hub of the Middle East, have leapt by about 60 per cent from 2022 to the first quarter of 2025, Fitch data showed. The market has maintained a robust momentum after bouncing back from the Covid-driven slowdown and its world-beating run was supported by government measures, including multiple visa options for investors and policy measures that boosted ease of doing business in the emirate. Oqood registrations for off-plan homes declined 8 per cent monthly in June, but were 60.1 per cent higher annually, accounting for 73.4 per cent of total residential sales, the ValuStrat report showed. Meanwhile, ready secondary-home transactions dropped 14.3 per cent since May, but were 11 per cent higher on an annual basis. Top off-plan locations transacted included projects in Jumeirah Village Circle, Dubai Investment Park Second, Uptown Motorcity, Damac Island City and Business Bay. Both Dubai Silicon Oasis and Uptown Motorcity broke their individual records with the highest number of off-plan homes traded in one month, the ValuStrat research found. The majority of ready home sales were concentrated in Jumeirah Village Circle, Business Bay, Dubai Marina, Downtown Dubai and DIFC, the consultancy said. Record sales of $10m-plus homes In a separate report, property consultancy Knight Frank said sales of $10 million-plus homes in Dubai hit a record high of $2.6 billion in the second quarter of 2025. This was 37 per cent ahead of the $1.9 billion recorded in the first quarter and a 63 per cent uplift on the same period last year. The total number of $10 million-plus sales during the second quarter hit 143, including 22 transactions for more than $25 million. Apartments outpaced villas in the $10 million+ segment, with 80 apartment sales, compared to 63 villas. Knight Frank identified Palm Jumeirah as the leading location for $10 million-plus sales, with 28 properties changing hands, while La Mer (23) and Downtown Dubai (16) rounded off the top three busiest $10 million-plus markets in the city. 'The record sales in the luxury price bracket highlight the sustained and rising demand among global and domestic high-net-worth individuals for homes in the emirate,' said Faisal Durrani, partner – head of research, Mena at Knight Frank. 'The total value of all homes sold in Dubai has increased by 282 per cent since 2020, and in 2024 it was once again the world's busiest market for $10 million-plus homes, recording 435 sales in this price bracket and almost equalling the number of $10 million-plus home sales in London and New York combined. 'Dubai's residential market continues to mature, as evidenced by the rise in the number of genuine end-users and the decline in the number of homes being sold within 12 months of purchase from around 25 per cent in 2008 to between 4 per cent and 5 per cent today.' There is also a rising number of 'property millionaires' across Dubai, according to the Knight Frank research. At the start of the second quarter, there were 110,000 residential units valued above $1 million. About 37,000 are owned by 'accidental millionaires' – purchasers who bought properties for less than $1 million that are now worth more, solely due to price inflation, the study found. 'The number of accidental millionaires in Dubai has increased by an average of 79.5 per cent over the past three years,' Shehzad Jamal, partner – strategy and consultancy, Mena at Knight Frank, said. Palm Jumeirah has Dubai's highest concentration of $1 million-plus homes – 9,071 as at the start of the second quarter, followed by Downtown (8,376) and Dubai Hills Estate (6,138). However, while the city welcomed almost 170,000 new residents last year, the total housing stock only rose by a little over 30,000 units, the study revealed.
Arabian Business
16-06-2025
- Business
- Arabian Business
Abu Dhabi is driving ‘significant opportunity' amid UAE real estate surge, experts say
While the UAE's real estate spotlight has long been focused on Dubai, Abu Dhabi has been crafting a quieter, yet no less powerful, growth story. In a series of exclusive interviews, leading real estate experts revealed how the capital's property market is becoming a magnet for both domestic and international investors—driven by smart planning, long-term vision, and a wave of infrastructure and lifestyle upgrades. 'Abu Dhabi has surpassed Oslo to become the city with the highest concentration of sovereign wealth,' Ali Ishaq, Head of Residential Agency in Abu Dhabi told Arabian Business. Abu Dhabi's Reem and Yas Islands 'standout performers' 'This is driving significant opportunity both for individuals and corporate entities and in turn driving growth in Abu Dhabi's real estate market,' he added. That capital strength is being translated into large-scale urban development. New plans featuring integrated, community-driven environments are emerging, offering a variety of product types not previously available in the emirate. Infrastructure enhancements — including new bridges and tunnels connecting key districts and islands — are also making the city more liveable and better connected. Rental yields across the capital remain robust. According to Haider Tuaima, Managing Director and Head of Real Estate Research, 'gross rental yields averaged 7.8 per cent, with apartments in Al Muneera offering the highest yields at 8.8 per cent and villas in Hydra Village showing the strongest yield growth at 7.6 per cent.' Residential occupancy stood at 88.1 per cent in Q1, he added, noting that supply remains constrained. 'Only 279 units were delivered in the first quarter—just 2 per cent of the nearly 14,000 expected for the full year.' Ishaq confirmed that Reem Island and Yas Island are standout performers, 'Reem Island and Yas Island are delivering the highest rental yields, owing to attractive pricing and location.' Both apartments and villas are seeing increased demand, with the latter particularly appealing to families establishing longer-term bases. Abu Dhabi witnesses diverse and growing investor base Abu Dhabi is now attracting a broader, more diversified investor demographic. 'We're seeing both short- and long-term investors entering the market,' Ishaq said. 'Abu Dhabi's appeal lies in its position as the capital of the UAE, a hub for talent, and a city committed to innovation and digital transformation.' Tuaima further pointed to mortgage trends as further evidence of end-user activity. 'In Q1, two-thirds of transactions were mortgage-backed, with just one-third completed in cash — the inverse of what we typically see in Dubai,' he said. 'Abu Dhabi's strong appeal to investors stems from its strategic location, thriving economy, and government support for growth and innovation,' Ishaq added. 'The city's world-class infrastructure, connectivity, and ease of business further enhance its attractiveness to investors.' Aside from this, sustainability has moved from a trend to a priority in Abu Dhabi's real estate landscape. 'Residential occupiers and younger generations are increasingly mindful of wellness, sustainability and, as a result, are seeking developments that offer more than just housing,' Ishaq said. 'In the commercial market, occupiers are also conscious of how their operations impact the environment, with global occupiers leveraging real estate to off-set operational impacts,' he added. This trend is complemented by the city's growing lifestyle offerings and family-orientated ecosystem. Upcoming international schools to boost investor interest in Abu Dhabi New school openings, including Gordonstoun, Harrow, and King's College School Wimbledon, have added to the city's appeal for long-term residents. While comparisons with Dubai are inevitable, Abu Dhabi's momentum is based on its own fundamentals. 'The significant price rises in Dubai post-pandemic make Abu Dhabi a much more affordable option in the UAE,' Ishaq noted. However, affordability isn't the only driver. 'Recent announcements around Disney, a growing entertainment calendar, the concentration of sovereign wealth, and world-renowned school openings are all contributing to the liveability of the city.' The ValuStrat Price Index for Abu Dhabi rose 7.2 per cent year-on-year in Q1 2025, with villa prices up 9.7 per cent and apartment prices up 4.5 per cent. According to Tuaima, 'Abu Dhabi's capital values continue to show healthy single-digit growth, supported by constrained supply and steady demand, with prices expected to rise up to 7 per cent by the end of 2025.' Off-plan prices averaged AED17,061 per sq m — significantly higher than ready property prices — although transaction volumes were down due to fewer new launches. 'Off-plan transactions fell sharply, down 57.7 per cent quarter-on-quarter and 79.2 per cent year-on-year,' Tuaima said. 'Ready home sales declined 33.6 per cent quarter-on-quarter but increased 13.6 per cent year-on-year.' Echoing the sentiment, Declan King, Senior Partner and Group Head of Real Estate said: 'Great to see the real estate sector in the capital reporting consecutive periods of quarterly growth in sales values of late. It will be interesting to observe if the recent announcement of Disney on Yas Island will act as a further catalyst for the local property market.' Abu Dhabi is no longer just an alternative, it's becoming a primary destination. Backed by sovereign investment, a transparent regulatory framework, and a future-focused approach to urban living, the capital is steadily winning over investors across the spectrum, and with market fundamentals on its side, the emirate's quiet surge is getting harder to ignore.
Khaleej Times
16-06-2025
- Business
- Khaleej Times
Living in Dubai? New report reveals how far property prices will rise in 2025
Dubai property prices increased 8 per cent in the first five months of this year, said Haider Tuaima, managing director and head of real estate research at ValuStrat. However, prices will see a moderation in growth rather than a decrease in value over the coming months in 2025. The property prices in the emirate saw a 1.6 per cent monthly increase and a 24.7 per cent rise since May last year, led by villas, said the real estate consultancy in its monthly analysis of the emirate's property market. The monthly report showed that villa capital values grew 2 per cent month-on-month, with an annual increase of 29.3 per cent. The highest growth in the villa segment was led by Jumeirah Islands (41.5 per cent), followed by Palm Jumeirah (40.9 per cent), Emirates Hills (28.6 per cent), and The Meadows (28.3 per cent). Meanwhile, the lowest gains were recorded in Mudon (8.5 per cent), which has remained relatively stable for the ninth consecutive month. Stay up to date with the latest news. Follow KT on WhatsApp Channels. It added that Dubai's freehold villas are, on average, valued 66.4 per cent above the previous market peak in 2014 and 175.1 per cent higher than post-pandemic levels. Apartment prices rose by 1.1 per cent month-on-month, recording an annual growth of 20%. The highest yearly capital gains were seen in The Greens (25.5 per cent), Dubailand Residence Complex (24.1 per cent), Palm Jumeirah (23.8 per cent), Dubai Silicon Oasis (23.7 per cent), and Town Square (23 per cent). In contrast, the lowest capital value increases were recorded in International City (12.3 per cent) and the Burj Khalifa (16.4 per cent), which has recently surpassed its previous price peaks of 2014. Apartment valuations are, on average, 71.2 per cent above post-pandemic levels, but 5.8 per cent below the previous market peak during 2014, said ValuStrat analysts in the monthly report. As for the remainder of the year, the company predicted that property prices in Dubai are likely to increase by up to another 10 per cent. Meanwhile, real estate consultancy JLL said the residential market is expected to adjust as supply and demand approach equilibrium. 'This shift will likely signal a moderation in price growth rates rather than a decrease in property values. As the year progresses, this trend is anticipated to increasingly influence sales prices, potentially leading to a more sustainable growth pattern in the market,' it said. In the first quarter of 2025, JLL said, sales prices continued to climb on the back of strong residential demand, resulting in a 16.5 per cent annual increase in overall prices. Villas led the market, transacting at an average of Dh2,113 per square foot, an 18.9 per cent year-on-year increase. Apartment sales prices also gained momentum, reaching Dh1,725 per sqft, up 16.1 per cent annually.
