Latest news with #ValuStrat
Zawya
6 days ago
- 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
6 days ago
- Business
- Khaleej Times
UAE: Over 40% of property buyers expect a drop in prices in the coming months
Property buyers are increasingly expecting prices to cool over the next six months, according to a survey released by Property Finder. Around 44 per cent of property buyers expect a price drop, while 30 per cent expect increases, and 26 per cent see prices remaining stable in June 2025. In the previous month of May, buyers were fairly divided, with 37 per cent believing prices would decrease, 34 per cent expecting increases, and 29 per cent anticipating stability. 'This shift suggests a growing perception that recent price surges may be easing, a sign of a more mature, considered view among home seekers and buyers as the market continues to evolve,' the brokerage firm said. The property portal also launched PF Market Pulse, a bi-monthly consumer sentiment survey that captures real-time insights into buyer and seller behaviour and market expectations across the UAE's property landscape. Property prices have rallied over the past four years as a large number of foreign professionals, businessmen, and millionaires flocked to the country due to its safety and security, investment opportunities and job openings. Prices in the UAE, on average, have seen a double-digit increase over the past few years. Most of the property brokerages and consultancies expect prices to have started to stabilise, and drop in some of the communities, after a four-year-plus rally. 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 per cent year-on-year, while villa prices increased by 28.7 per cent. This marks a slowdown compared to the same period last year, when apartment prices had risen by 23.4 per cent and villa prices by 33.4 per cent. Similarly, rental growth also moderated, with villa rents up 4.8 per cent and apartment rents up 7.2 per cent annually. Moreover, the UAE — especially Dubai — will also see a higher supply of new properties in the next couple of years, which will also put prices under pressure. According to CBRE, residential supply has been growing steadily post-pandemic, averaging 30,000 units per year since 2020. However, it added that the future pipeline has now swelled to unprecedented levels, with around 300,000 units set for delivery by the end of 2029, averaging around 60,000 per year. Importantly, Property Finder said more than seven out of 10 — 72 per cent — home seekers and sellers in the UAE plan to buy within six months, reflecting strong demand for home ownership in the country amidst rising rentals and capital appreciation. Sevgi Gur, chief marketing officer at Property Finder, said the results not only highlight a resilient appetite for home ownership in the UAE but also reflect a more informed, confident buyer that's increasingly responsive to market signals. According to Property Finder, over 13,000 respondents participated in the inaugural survey period of home buyers and sellers who were actively tracking market trends, pricing cycles, and supply shifts.
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.
Khaleej Times
17-07-2025
- Business
- Khaleej Times
Discover Al Jurf as Abu Dhabi's next iconic beachfront destination
Along the peaceful shores between two of the world's most dynamic cities — Dubai and Abu Dhabi — lies Al Jurf, a hidden gem that is quickly becoming one of the country's most desirable beachfront destinations. What sets Al Jurf apart is its location along Sheikh Zayed Road, making it easy for residents to get to both emirates. Only a short drive from key hubs like Palm Jebel Ali, Al Maktoum International Airport, Zayed International Airport, and the upcoming Disneyland in Abu Dhabi, Al Jurf provides unmatched connectivity. Set against the backdrop of a preserved natural reserve, Al Jurf features a coastal setting alive with native wildlife, fresh sea breeze, and lush greenery. As Abu Dhabi's property market continues to see sharp momentum in 2025, Al Jurf's appeal is supported by strong fundamentals. According to the recent ValuStrat research report, residential prices in the capital rose by 7.2 per cent annually in Q1 2025, with villa prices up by 9.7 per cent and apartment prices increasing by 4.5 per cent. In emerging luxury destinations like Al Jurf, villas currently start from Dh3.4 million, while apartments begin at approximately Dh930,000 for a studio, with two-bedroom units averaging Dh2 million — offering high-quality entry points in a rising market. Further reinforcing this trend, the Abu Dhabi Real Estate Centre (ADREC) reported a 34.5 per cent increase in overall real estate transaction value in Q1 2025, reaching Dh25.3 billion. Luxury deals over Dh7 million alone accounted for Dh6.3 billion in just the first four months — more than half of which came from ultra-luxury homes valued above Dh10 million. Rental yields in Abu Dhabi are equally attractive — averaging 8.3 per cent for apartments and 6.7 per cent for villas — making beachfront residences here a strong proposition not just for end-users, but also for investors seeking capital growth and income stability. This rise in value is also being driven by a sharp uptick in branded residential offerings. Abu Dhabi's luxury property market has seen a fourfold increase in branded residences in 2025 alone. Projects affiliated with global names like Jacob & Co., and Elie Saab, are reshaping investor preferences, often commanding price premiums. The natural environment inspired Ohana Development to introduce its latest and most ambitious branded residence project in Al Jurf — Jacob & Co. Beachfront Living by Ohana. This development reimagines luxury living on the UAE coastline. It blends the charm of Al Jurf with the style and innovation of a globally recognised brand, providing private beach access, stunning sea views, and a range of thoughtfully designed amenities. The community features 457 homes that comprise sea-view apartments, villas, penthouses, Sky Mansions, and beachfront mansions, all capturing the essence of refined coastal living. Each unit reflects Jacob & Co.'s bold design ethos. 'Al Jurf offers a rare opportunity to redefine luxury beachfront living,' says Husein Salem, CEO of Ohana Development. 'Backed by robust Q1 growth and limited supply, our Jacob & Co. residences offer a compelling mix of lifestyle, legacy, and long-term investment appeal.' Mustafa El Sammak, COO of Ohana Development, adds: 'With branded off-plan homes in Abu Dhabi showing double-digit capital gains and strong rental performance, we see Al Jurf standing at the intersection of nature, design, and strategic investment. It's more than a residence — it's a destination.'
Al Etihad
15-07-2025
- Business
- Al Etihad
Investors back Abu Dhabi's diversified realty sector as turnkey homes win market favour
16 July 2025 00:45 ISIDORA CIRIC (ABU DHABI)Abu Dhabi's property scene is steadily shifting in favour of ready-to-move-in homes, with buyers increasingly eschewing off-plan purchases for the certainty of completed units. Recent data suggests that sales of completed units now account for the majority of transactions – over 66% – with experts saying the shift is both behavioural and structural, and likely to its latest report on the emirates residential real estate sector, Cavendish Maxwell recorded 900 transactions for ready properties worth Dh2.3 billion, compared with just 400 off-plan deals in Q1 2025. This follows a full-year share of 61.5% for completed units in Q4 2024, according to ValuStrat data from Bachani, Co-Founder of Merlin Real Estate, said that while short-term supply constraints have driven some of this demand, the real change is behavioural - buyers now prize the tangibility and immediacy of turnkey homes over the uncertainty of off-plan projects.'In the short term, the limited availability of completed units has increased demand for ready-to-move-in properties. However, there is also a clear long-term trend emerging, where buyers are increasingly prioritising tangible, completed assets over the uncertainties associated with off-plan purchases,' he told Maxwell data also revealed that, while ready property volumes and values were up compared to the same period last year, off-plan activity dropped both year-on-year and quarter-on-quarter, driven in part by a slowdown in new launches. The average ticket price on ready sales also hit Dh2.5 million – the highest recorded value since Q1 these findings suggest that Abu Dhabi buyers' growing appetite for turnkey homes is not slowing down.'This trend appears to be more than just a temporary response to supply constraints but rather a shift in buyer behaviour that is likely to persist moving forward,' Bachani Laver, Cavendish Maxwell Associate Director - Abu Dhabi, sees the same pattern emerging.'The UAE capital is seeing a notable shift towards the secondary residential market, with sustained demand for ready homes and fewer off-plan project launches compared to previous quarters,' he added that the three-year-high average ticket price on ready homes demonstrates 'encouraging signs of broader price appreciation', a trend he also expects will continue in the coming luxury market isn't losing steam either. Abu Dhabi's ultra-premium residential space is now boosted by global brands, with projects bearing the names of Waldorf Astoria, Brabus and The W entering the market. The capital recorded Dh6.3 billion in luxury property sales in the first four months of 2025, with branded launches increasing fourfold year-on-year, according to Metropolitan Capital Real says the city's less headline-grabbing segments are next in line. He predicts that as the expatriate population grows, 'reasonably priced mid-market properties are likely to receive more focus in the next cycle' as developers try to rebalance their pipelines.'While luxury properties are currently a key driver of growth, there is a strong recognition among developers of the ongoing demand for mid-market housing. The mid-market offers a consistent demand, making it an attractive avenue for sustainable growth,' he balance between showpiece developments and the quieter resilience of the mid-tier is helping the market mature and expand without overheating, and investors are average transaction value in Q1 reached Dh3.7 billion across 1,300 transactions. Apartment prices were up 12.3% on last year, and 4% quarter-on-quarter, and villas 12.5% and 2.4% Maxwell data also revealed that around 11,900 new homes will be delivered in Abu Dhabi by the end of 2025 - on top of the 600 already delivered during Q1 - with another 7,000 in the pipeline for it's not just pricing that's fuelling confidence. Buyers are encouraged by macroeconomic stability, strong project delivery track records, and greater regulatory clarity, all of which are helping the market absorb incoming perception is supported by policy measures ranging from long-term visa schemes to flexible payment plans for property buyers, many of which were introduced in recent years to improve market transparency and attract international interest.'Abu Dhabi's commitment to sustainable development, transparency, and investor-friendly policies further strengthens confidence in its real estate market, positioning it as a prime destination for both regional and international investors,' Bachani it seems like the current momentum is exposing undervalued corners of the market that investors would do well to watch.'At present, the high-end rental market and mixed-use developments are significantly undervalued. Office occupancy rates in Abu Dhabi have exceeded 94%, with city-wide office rents rising by 15% year-on-year,' Bachani ahead to late 2025 and beyond, he predicts that serviced apartments, branded residences and mixed-use hubs will deliver the next wave of returns. 'Investors should also consider opportunities in serviced apartments and integrated mixed-use communities that offer both residential and commercial amenities. These types of developments align with Abu Dhabi's long-term vision for sustainable urban growth and are likely to experience increased demand in the coming years.'
