Latest news with #luxurysegment
Skift
5 days ago
- Business
- Skift
Marriott's Sluggish Q2: Flat U.S., Drop in Government Travel, Forecast Narrowed
Marriott has seen softness in revenue per available room, or RevPAR. But development pipelines and loyalty member gains could drive future growth. Marriott's second-quarter results underscored a slowdown in its core U.S. and Canada markets, where revenue per available room was flat and soft business and government demand weighed on growth. The company trimmed its full-year forecast. Overall global growth for revenue per available room (RevPAR) was only 1.5%, scraping the bottom of the guidance the company had given to investors earlier in the year. In the U.S. and Canada, it was flat. "Continued strength in the luxury segment was offset by a decline in select service demand, largely reflecting reduced government travel and weaker business transient demand," said CEO and president Anthony Capuano. The main drag was a weak U.S.: part uncertainty from the Trump tariffs and part because of when Easter fell, a one-time factor. Luxury brands like The Ritz-Carlton surged 6% year-over-year in RevPAR, while mainstream chains like Courtyard and Fairfield stumbled, noted analyst Richard Clarke in a flash report for Bernstein Research. Some bright spots: International markets showed 5% growth in RevPAR. Net rooms growth accelerated to 4.7%, with 15,500 rooms added (not counting its CitizenM acquisition). The development pipeline grew 5.5% to record levels. Trimming Outlook Look
Arabian Business
27-07-2025
- Business
- Arabian Business
Dubai real estate: Property market soars 46% in Q2 2025, says Betterhomes report
Dubai 's property market maintained its upward trajectory in the second quarter of 2025, with total sales value rising 46 per cent year-on-year to AED151.8 billion and transaction volumes increasing 25 per cent to 50,485 units. The market demonstrated resilience during June's regional unrest, reinforcing Dubai's position as a destination for both capital and lifestyle buyers, according to Betterhomes' latest quarterly report. 'Dubai's real estate market maintained its momentum in Q2, with transactions up 25 per cent year-on-year and total value rising 46 per cent. Apartments and off-plan led activity, while the luxury segment hit record highs. Even during June's regional unrest, the market remained resilient; reinforcing Dubai's position as a safe, stable destination for capital and lifestyle buyers alike,' Louis Harding, Chief Executive Officer of Betterhomes said. Apartments drive 80% of Dubai property market as off-plan sales jump 30% in Q2 2025 Apartments accounted for 80 per cent of all transactions with over 40,000 units sold, generating AED81 billion in sales value. The sector continued growth with both secondary and off-plan transactions rising 21 per cent year-on-year. Off-plan apartment sales increased 30 per cent quarter-on-quarter, with developers launching new projects to meet market demand. Two-bedroom apartments contributed 33 per cent of off-plan transaction value, while one-bedroom apartments made up 30 per cent and studios 10 per cent. The average price per square foot for off-plan transactions stood at AED2,023, compared to AED1,600 for secondary apartments. Jumeirah Village Circle led off-plan apartment transactions with 12.2 per cent of the total, followed by Business Bay at 6.4 per cent and Dubai Residence Complex at 5.3 per cent. Dubai villa prices soar 90% above pandemic lows The villa and townhouse segment recorded contrasting performance between secondary and off-plan sales. Secondary properties saw 66 per cent growth year-on-year and 23 per cent quarterly growth, while off-plan villa transactions declined 23 per cent year-on-year and 46 per cent quarter-on-quarter. Secondary villa and townhouse sales reached AED62.4 billion, up from AED34.6 billion in Q2 2024, representing an 80 per cent year-on-year increase. 'With approximately 20,000 new units delivered in the first half of 2025 and a further 70,000 expected by year-end, Q3 is shaping up to be an exciting phase for Dubai's property market,' Christopher Cina, Director of Sales at Betterhomes said. The Valley accounted for 29.7 per cent of off-plan villa and townhouse transactions, followed by EMAAR South with 15.5 per cent. Four-bedroom homes represented 49 per cent of off-plan transaction value in this segment. Price growth continues across segments Dubai's citywide average property price reached AED1,582 per square foot, representing a 6 per cent increase compared to the second half of 2024 and standing 90 per cent above pandemic-era lows of AED833. Off-plan apartment prices recovered to AED 2,023 per square foot in Q2 2025, marking a 12.5 per cent increase since early 2023. Secondary apartment prices rose more consistently, climbing 23 per cent over the same period to AED 1,599. Villa and townhouse prices showed strength, with secondary market prices reaching AED1,557 per square foot (up 9 per cent quarter-on-quarter) and off-plan prices at AED1,368 per square foot (up 4 per cent quarter-on-quarter). Over 20,000 residential units were delivered in the first half of 2025, with 70,000 additional units expected in the second half. The delivery pipeline extending into 2026 and 2027 includes over 200,000 units. Jumeirah Village Circle led community handovers in H1 2025, accounting for 20 per cent of total completions with over 4,130 units. Sobha Hartland followed with 2,200 units (11 per cent) and Mohammed Bin Rashid City with 1,600 units (8 per cent). Over 1,300 villas and 3,000 townhouses were delivered in H1 2025, already surpassing half of 2024's total deliveries. An additional 3,800 villas and 9,000 townhouses are expected in H2 2025. Luxury market reaches record heights The prime market witnessed record-breaking activity with 1,417 transactions valued at AED15 million or above, marking a 67 per cent quarter-on-quarter increase and 113 per cent year-on-year growth. Secondary luxury properties significantly outperformed with 1,153 transactions, 4.5 times more than off-plan sales in the same quarter. This represents a 137 per cent year-on-year surge. In the first half of 2025 alone, 2,268 luxury units transacted, representing 87 per cent of 2024's full-year volume and nearly double 2022's total. Rental market shows resilience A total of 107,830 rental contracts were recorded in Q2 2025, reflecting a 2 per cent increase year-on-year. Across the first half of 2025, Dubai registered 236,315 rental contracts, broadly in line with H1 2024's total of 240,270. Renewals consistently made up 60-65 per cent of contracts, while new leases remained steady at approximately 40 per cent. 'Leasing activity at Betterhomes grew by 33 per cent quarter on-quarter, highlighting the sustained demand across Dubai s rental market. Villa and townhouse demand rose significantly by 30 per cent and 98 per cent respectively reflecting a growing preference for spacious, family-oriented living,' Rupert Simmonds, Director of Leasing at Betterhomes added. International Buyer Interest Shifts The United Kingdom claimed the top spot among international buyers at Betterhomes, overtaking India with 56 per cent quarter-on-quarter growth. India and Pakistan maintained second and third positions respectively, while Poland entered the top five. Russian buyer activity eased and fell out of the top 10, while Ireland debuted at sixth place, highlighting growing European interest in Dubai real estate. The UAE's economy, the second largest in the GCC, recorded 3.8 per cent GDP growth in 2024, with forecasts projecting increases to 4.2 per cent in 2025 and 5 per cent in 2026. Dubai's population grew from 3.8 million to 4.1 million residents, now housing one-third of the UAE's population. Private school enrollment increased 6 per cent while universities experienced a 29 per cent surge in international students. Tourism sector growth supported the property market, with visitor numbers rising 7 per cent year-on-year until April 2025, led by a 22.7 per cent surge in April. Hotel occupancy levels reached 84 per cent in the first four months, up 7 per cent year-on-year. Betterhomes recorded strong growth across both sales and leasing. Sales transactions rose 17 per cent quarter-on-quarter, with townhouse deals more than doubling and average sale prices growing 28 per cent year-on-year. The leasing market saw transactions more than double year-on-year, with one and four-cheque payments accounting for nearly 60 per cent of new leases. 'As we move into Q3, the fundamentals remain strong. Population growth is steady, infrastructure continues to expand, and while more supply is coming online, demand is still outpacing it in most areas. We expect to see more negotiation, more realistic pricing, and a little more competition, which, frankly, is no bad thing,' Harding said.
Arabian Business
19-07-2025
- Business
- Arabian Business
Dubai real estate: Property market sales surge 46% as market value hits $41.3bn in Q2 2025
Dubai 's property market recorded total sales value of AED151.8 billion in the second quarter of 2025, representing a 46 per cent increase year-on-year, a new report finds. Transaction volumes rose 25 per cent to reach 50,485 units during the same period, Betterhomes Shaping Skylines | Q2 2025 Dubai Residential Real Estate Market The figures build on growth from the first quarter, with quarter-on-quarter increases of 33 per cent in value and 19 per cent in volume. The performance reinforces Dubai's position as a key property hub in the region. Dubai real estate transactions rise 25% year-on-year with 50,485 units sold 'Dubai's real estate market maintained its momentum in Q2, with transactions up 25 per cent year-on-year and total value rising 46 per cent. Apartments and off-plan led activity, while the luxury segment hit record highs. Even during June's regional unrest, the market remained resilient; reinforcing Dubai's position as a safe, stable destination for capital and lifestyle buyers alike,' Louis Harding, Chief Executive Officer at Betterhomes said. Apartments accounted for 80 per cent of total transactions, contributing over 40,000 units sold and generating AED81 billion in sales value. The segment showed growth of 21 per cent year-on-year across both secondary and off-plan transactions. Off-plan apartment sales increased 30 per cent quarter-on-quarter, with secondary apartments rising 23 per cent in value to reach AED21.17 billion. Off-plan transactions totalled AED60.15 billion, representing 37 per cent growth compared to Q2 2024. Jumeirah Village Circle emerged as the top performer for off-plan apartments, accounting for 12.2 per cent of total off-plan transactions. Business Bay followed with 6.4 per cent, while Dubai Residence Complex contributed 5.3 per cent. Two-bedroom apartments represented the highest contribution to off-plan transaction value at 33 per cent, with one-bedroom apartments at 30 per cent and studios at 10 per cent. The average price per square foot for off-plan transactions stood at AED2,023. In the secondary apartment market, JVC led with 11.2 per cent of transactions, followed by Business Bay at 7.5 per cent and Dubai Marina at 5.8 per cent. Two-bedroom apartments again dominated value contribution at 36 per cent, with the average price per square foot at AED1,600. Dubai villa sales jump 80% as secondary market outperforms off-plan developments Secondary villa and townhouse sales recorded 80 per cent year-on-year growth, reaching AED62.4 billion. Quarter-on-quarter growth reached 49 per cent compared to Q1 2025. Off-plan villa and townhouse sales declined 2 per cent year-on-year to AED8.06 billion and fell 32 per cent quarter-on-quarter from AED11.8 billion in Q1 2025. 'With approximately 20,000 new units delivered in the first half of 2025 and a further 70,000 expected by year-end, Q3 is shaping up to be an exciting phase for Dubai's property market. This upcoming supply is well-aligned with the city's growing population and strong investor appetite. Demand remains robust particularly for apartments and ready villas with healthy absorption of new launches. Both Q3 and the second half of 2025 are expected to reflect positive market sentiment, supported by a resilient economy, sustained end-user demand, and attractive rental yields,' Christopher Cina, Director of Sales at Betterhomes added. The Valley accounted for 29.7 per cent of off-plan villa and townhouse transactions, followed by EMAAR South with 15.5 per cent and Athlon by Aldar at 8 per cent. Townhouses drove 75 per cent of off-plan value in this segment. For secondary sales, Damac Islands led with 30 per cent of transactions, followed by Grand Polo Club and Resort at 9.4 per cent. Villas accounted for 77 per cent of secondary transaction value, while townhouses contributed 23 per cent. The citywide average price reached AED1,582 per square foot, representing a 6 per cent increase compared to the second half of 2024 and an 18 per cent rise from Q1 2024. Prices now stand 90 per cent above pandemic-era lows of AED833. Off-plan apartment prices reached AED2,023 per square foot, marking a 12.5 per cent increase since early 2023. Secondary apartment prices climbed 23 per cent over the same period to AED1,599 per square foot. Secondary villa and townhouse prices reached AED1,557 per square foot, reflecting 9 per cent quarterly growth and 6 per cent annual growth. Off-plan prices in this segment reached AED1,368 per square foot, with 4 per cent quarterly and 19 per cent annual growth. Approximately 20,000 units were delivered in the first half of 2025, with 70,000 additional units expected in the second half. The delivery pipeline extending to 2027 includes over 200,000 units. Jumeirah Village Circle led community handovers in H1 2025, accounting for 20 per cent of completions with over 4,130 units. Sobha Hartland followed with 2,200 units (11 per cent), while Mohammed Bin Rashid City ranked third with 1,600 units (8 per cent). Over 1,300 villas and approximately 3,000 townhouses were delivered in H1 2025. An additional 3,800 villas and 9,000 townhouses are expected in the second half of 2025. 'At the top end, the prime market remains extremely active. AED 15m+ transactions more than doubled compared to last year, as global buyers continue to view Dubai as a long-term investment and not a short-term play, for a variety of domestic and international reasons,' Harding added. The launch of PRIME by Betterhomes addresses the ultra-premium segment, focusing on luxury residences that offer exclusive properties. Total rental contracts reached 107,830 in Q2 2025, reflecting a 2 per cent year-on-year increase. New rental contracts declined 2 per cent annually and 13 per cent quarterly, while renewed contracts increased 4 per cent year-on-year. 'Leasing activity at Betterhomes grew by 33 per cent quarter-on-quarter, highlighting the sustained demand across Dubai's rental market. Villa and townhouse demand rose significantly by 30 per cent and 98 per cent respectively reflecting a growing preference for spacious, family-oriented living. As we move into Q3 2025, we expect this momentum to continue, particularly in established and emerging suburban communities. With tenant enquiries holding strong and rental prices remaining stable, the leasing market is well-positioned to see healthy absorption of new stock, supported by a maturing tenant base and lifestyle-driven relocations,' Rupert Simmonds, Director of Leasing at Betterhomes explained. Betterhomes recorded 111 per cent year-on-year growth in total leasing transactions, with apartments up 104 per cent, villas up 97 per cent, and townhouses rising 237 per cent. The UAE's GDP growth reached 3.8 per cent in 2024, with forecasts projecting increases to 4.2 per cent in 2025 and 5 per cent in 2026. UK buyers top Dubai property investments as international demand grows 56% Dubai's population has grown from 3.8 million to 4.1 million residents, now housing one-third of the UAE's population. Dubai's tourism sector demonstrated growth of 7 per cent year-on-year until April 2025, with hotel occupancy levels reaching 84 per cent in the first four months. Western Europe remains the largest source market, contributing 23 per cent of total arrivals. At Betterhomes, investors accounted for 58 per cent of all transactions in Q2, up from 50 per cent in Q1. Cash transactions rose to 52 per cent in Q2 2025, up from 42 per cent in Q1. The United Kingdom claimed the top position among buyer nationalities at Betterhomes, with UK buyer activity growing 56 per cent quarter-on-quarter. India and Pakistan maintained second and third positions respectively. 'As we move into Q3, the fundamentals remain strong. Population growth is steady, infrastructure continues to expand, and while more supply is coming online, demand is still outpacing it in most areas. We expect to see more negotiation, more realistic pricing, and a little more competition, which, frankly, is no bad thing,' Harding concluded.
