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Arabian Business
6 days ago
- Business
- Arabian Business
Dubai real estate: 73,000 homes to be delivered in 2025 as property sales hit $31bn
Dubai will add 73,000 residential units to its housing stock this year, with 300,000 units expected by the end of 2028, according to research from property consultant Cavendish Maxwell. The emirate recorded 42,000 property sales transactions worth AED114.4 billion in the first quarter of 2025, despite a 10 per cent decline compared to the final quarter of 2024. Sales increased 23 per cent compared to the same period last year. ' Dubai's property market is on track for a modest annual increase in terms of sales volumes and values, but there are indications that prices are beginning to stabilise. 2025 began with a brief dip in prices per sq ft, followed by a steady recovery. While prices are still on the up, the pace is showing signs of slowing down. For example, the average quarterly price increase for 2023 and 2024 was 4 per cent, compared to a 2.8 per cent rise in Q1 this year against Q4 2024,' Ronan Arthur, MRICS, Director and Head of Residential Valuation at Cavendish Maxwell said. 'With a weakened US dollar, strong rental returns and appealing yields, Dubai continues to attract local and international property investors. We expect this trend to continue throughout the year,' Arthur added. Off-plan sales dominated the market with a 70 per cent share, reaching AED77.5 billion across 29,000 transactions. This marked a 32 per cent increase on the first quarter of 2024. Secondary market sales totalled 13,200 transactions, up 6.6 per cent year-on-year. Apartments accounted for 75 per cent of all transactions, though their market share declined as buyers showed increased interest in larger properties. Townhouses represented almost 17 per cent of sales and villas just over 7 per cent. Property prices reached AED1,535 per square foot, up 2.8 per cent quarter-on-quarter and nearly 16 per cent higher than in the first quarter of 2024. Dubai luxury property sales reach 590 transactions above AED20 million The luxury property segment recorded 590 sales for properties worth AED20 million or more, compared to 480 in the same period last year. Almost 60 homes sold for AED50 million or above. Arthur noted that off-plan property sales accounted for 67 per cent of luxury transactions and nearly a third of ultra-luxury sales. More than 180,000 units will be delivered in 2026 and 2027 when a surge in project completions is anticipated, Cavendish Maxwell said. Jumeirah Village Circle leads Dubai property completions with 4,330 new units 'Demand from high-net-worth individuals (HNWIs) is fuelled by Dubai's favourable tax policies, long-term residency incentives and global connectivity. And while the ultra-luxury segment – properties valued at AED50 million or more – has limited supply, transaction volumes continue to show steady performance. Despite quarterly fluctuations, this segment remains stable, solidifying its position as a niche investment class for elite buyers from the UAE and internationally,' Arthur added. Jumeirah Village Circle led project completions in the first quarter with 4,330 units delivered. The area also recorded the highest number of apartment sales with 3,330 transactions, including nearly 2,200 off-plan purchases and 1,132 secondary market deals. Mohammed Bin Rashid City came second for completions with 1,037 units, followed by Business Bay with 743 units, Downtown Jebel Ali with 647 units and Rukan with 636 units. For future supply, Jumeirah Village Circle tops the list with nearly 27,100 units due between now and the end of 2028. Business Bay follows with 19,470 units, then Azizi Venice with 17,100 units, DAMAC Lagoons with 10,730 units and Arjan with 9,750 units. Apartments represented almost 80 per cent of all completed projects from January to March. During the same period, 95 real estate projects were launched, delivering nearly 28,600 new units. DAMAC Islands recorded the highest number of off-plan villa and townhouse sales with 1,430 transactions, followed by The Valley, DAMAC Hills 2, Villanova and DAMAC Lagoons. For secondary villa and townhouse sales, DAMAC Hills 2 led with 318 transactions, followed by Al Furjan, Emirates Living, Reem and Jumeirah Village Circle. Dubai rental yields average 7.3% for apartments as growth rate slows to 1% Residential rents increased 14.4 per cent compared to the first quarter of 2024, though the quarterly growth rate slowed to 1 per cent compared to the final quarter of 2024. This represented the lowest quarterly increase in two years, compared to previous quarterly rises ranging from 2 per cent to 6 per cent. 'This slower pace of growth could be partly driven by the influx of new units delivered in the first three months of the year, as well as the Dubai Smart Rental Index, introduced at the beginning of the year, which is likely to influence tenant expectations and price adjustments. With additional supply on the way, monitoring how rental trends evolve in response to increasing inventory and a shifting, regulatory framework will be crucial,' Arthur said. At the end of March 2025, rental yields averaged 7.3 per cent for apartments and 5 per cent for villas and townhouses. Dubai Investments Park offered the highest apartment rental yields at 10.3 per cent, followed by International City at 9.1 per cent, Downtown Jebel Ali at 9 per cent, Dubai Production City at 8.6 per cent, Dubai Silicon Oasis at 8.5 per cent, Dubai Sports City at 8.4 per cent, and Liwan and International City Phase 2 both at 8.2 per cent. For villas and townhouses, Industrial City led with yields of 6 per cent, followed by Jumeirah Village Circle at 5.9 per cent, DAMAC Hills 1 and 2 both at 5.7 per cent, International City and Serena both at 5.5 per cent, Mudon and Villa Nova both at 5.4 per cent, and Dubai Hills Estate at 5.3 per cent.
Zawya
26-05-2025
- Business
- Zawya
Cairo Real Estate Market posts strong Q1 2025 performance across all sectors
Cairo's real estate market kicked off 2025 with solid momentum, showing robust activity across residential, office, retail, and hospitality segments, according to The Cairo Real Estate Market Dynamics – Q1 2025 report. Residential Sector Approximately 7,500 new residential units were delivered in Q1, bringing Cairo's total housing stock to around 301,100 units. Most upcoming completions—estimated at 28,500 units by year-end—are concentrated in East Greater Cairo. Although growth has eased from the triple-digit surges of 2024, market activity remains healthy. A stabilizing exchange rate and a sharp decline in inflation to 13.6% as of March 2025 have contributed to this normalization. Property sales prices in 6th October and New Cairo increased by an average of 89.4% year-on-year, while rental rates rose 90.2% and 88.2%, respectively. A growing trend has seen more prospective buyers opting to rent in high-end neighborhoods previously beyond their purchasing power. This shift is encouraging landlords to lease rather than sell, bolstering the rental market and enhancing investment returns. Office Sector The office market expanded by roughly 10,500 sqm of leasable space in Q1, raising Cairo's total office inventory to approximately 2.2 million sqm. An additional 615,300 sqm is expected to be completed by the end of the year. Grade A office vacancies declined to 8.6%, down from 10.9% in the previous quarter. Rents rose year-on-year by 4.7% for Grade A offices and 2.9% for Prime spaces. Limited availability of high-quality stock kept landlords in a strong negotiating position. Parking availability has become increasingly important in lease discussions, driving developers to incorporate podium parking in new projects. Retail Sector Cairo's retail market added 27,000 sqm of gross leasable area (GLA) in Q1, increasing total retail stock to 3.22 million sqm. Most of this growth occurred in New Cairo and the New Administrative Capital, with expansions in business parks, malls, and community centers. Vacancy rates fell to 7.2%, down from 9.2% a year earlier, as improved footfall and tenant demand supported performance. Outdoor, community-focused retail formats—especially those centered on F\&B and entertainment—outperformed traditional malls. Rental rates rose across the board, with super-regional malls seeing a 7.4% annual increase and community malls registering an 11.4% uptick. Despite higher rents, landlords continued to offer leasing incentives such as rent abatements and capital expenditure contributions. Hospitality Sector The hospitality sector saw the addition of approximately 870 hotel keys in Q1, following the openings of Hilton Cairo Nile Maadi and Sofitel Cairo Downtown Nile. This brings Cairo's total hotel stock to about 27,800 keys. While occupancy slipped slightly by 0.7% year-on-year through March, average daily rates (ADR) rose sharply by 30.5%, driving a 29.1% increase in revenue per available room (RevPAR). These gains signal strong pricing power and sustained recovery in tourism, especially in the upscale and luxury segments. Market Outlook Cairo's real estate market in Q1 2025 demonstrated resilience and adaptability, with each sector effectively navigating evolving economic conditions and shifting consumer preferences.
Yahoo
24-05-2025
- Business
- Yahoo
10 Best States To Invest in a Second Home
If you've already dipped your toe into the world of real estate with the purchase of your home, you may be looking to add to your portfolio with a second home as an investment property. However, the opportunities to make this investment profitable are not the same everywhere, as some states offer more affordable homes than others. Explore More: Check Out: To determine the best states to invest in a second home, Deluxe Holiday Homes evaluated states based on average house sale price, 30-year mortgage rates, average down payment percentage and disposable income. For the purposes of this study, lower income-to-mortgage ratio percentages indicated better affordability and greater viability for second home investment. Here's a look at the best states to buy a second home as an investment. Average house sale price: $219,861 Estimated mortgage payment: $1,633 Monthly disposable income: $1,996 % of disposable income spent on mortgage: 81.8% Average house sale price: $259,430 Estimated mortgage payment: $1,819 Monthly disposable income: $2,144 % of disposable income spent on mortgage: 84.9% Trending Now: Average house sale price: $236,678 Estimated mortgage payment: $1,699 Monthly disposable income: $1,957 % of disposable income spent on mortgage: 86.8% Average house sale price: $209,333 Estimated mortgage payment: $1,530 Monthly disposable income: $1,712 % of disposable income spent on mortgage: 89.4% Average house sale price: $158,255 Estimated mortgage payment: $1,315 Monthly disposable income: $1,446 % of disposable income spent on mortgage: 91% Average house sale price: $217,707 Estimated mortgage payment: $1,610 Monthly disposable income: $1,757 % of disposable income spent on mortgage: 91.7% Average house sale price: $257,276 Estimated mortgage payment: $1,802 Monthly disposable income: $1,945 % of disposable income spent on mortgage: 92.63% Average house sale price: $238,797 Estimated mortgage payment: $1,728 Monthly disposable income: $1,853 % of disposable income spent on mortgage: 93.3% Average house sale price: $200,266 Estimated mortgage payment: $1,520 Monthly disposable income: $1,624 % of disposable income spent on mortgage: 93.6% Average house sale price: $201,708 Estimated mortgage payment: $1,512 Monthly disposable income: $1,542 % of disposable income spent on mortgage: 98% More From GOBankingRates 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on 10 Best States To Invest in a Second Home
Yahoo
24-05-2025
- Business
- Yahoo
10 Best States To Invest in a Second Home
If you've already dipped your toe into the world of real estate with the purchase of your home, you may be looking to add to your portfolio with a second home as an investment property. However, the opportunities to make this investment profitable are not the same everywhere, as some states offer more affordable homes than others. Explore More: Check Out: To determine the best states to invest in a second home, Deluxe Holiday Homes evaluated states based on average house sale price, 30-year mortgage rates, average down payment percentage and disposable income. For the purposes of this study, lower income-to-mortgage ratio percentages indicated better affordability and greater viability for second home investment. Here's a look at the best states to buy a second home as an investment. Average house sale price: $219,861 Estimated mortgage payment: $1,633 Monthly disposable income: $1,996 % of disposable income spent on mortgage: 81.8% Average house sale price: $259,430 Estimated mortgage payment: $1,819 Monthly disposable income: $2,144 % of disposable income spent on mortgage: 84.9% Trending Now: Average house sale price: $236,678 Estimated mortgage payment: $1,699 Monthly disposable income: $1,957 % of disposable income spent on mortgage: 86.8% Average house sale price: $209,333 Estimated mortgage payment: $1,530 Monthly disposable income: $1,712 % of disposable income spent on mortgage: 89.4% Average house sale price: $158,255 Estimated mortgage payment: $1,315 Monthly disposable income: $1,446 % of disposable income spent on mortgage: 91% Average house sale price: $217,707 Estimated mortgage payment: $1,610 Monthly disposable income: $1,757 % of disposable income spent on mortgage: 91.7% Average house sale price: $257,276 Estimated mortgage payment: $1,802 Monthly disposable income: $1,945 % of disposable income spent on mortgage: 92.63% Average house sale price: $238,797 Estimated mortgage payment: $1,728 Monthly disposable income: $1,853 % of disposable income spent on mortgage: 93.3% Average house sale price: $200,266 Estimated mortgage payment: $1,520 Monthly disposable income: $1,624 % of disposable income spent on mortgage: 93.6% Average house sale price: $201,708 Estimated mortgage payment: $1,512 Monthly disposable income: $1,542 % of disposable income spent on mortgage: 98% More From GOBankingRates 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on 10 Best States To Invest in a Second Home
Daily Telegraph
20-05-2025
- Business
- Daily Telegraph
Latest interest rate cut will be big blow for one key Aussie group
It will seem like a big win for some — but the RBA's latest interest rate cut could make life substantially harder for a big subset of the Aussie population. Experts said those still searching for a place to call home would be steamrolled by the central bank's decision to slash interest rates by 0.25 per cent, announced at its May board meeting on Tuesday. The official cash rate has now dropped from 4.1 per cent to 3.85 per cent. The move, widely anticipated by economists and the money market, is the second rate cut for the cycle following an earlier reduction in February and a hold in April. It will deliver existing homeowners a lot of savings on their repayments but it is also expected to supercharge the property market and leave would-be buyers even further behind. The cut could pour fuel over an already heating housing market and drive up prices, with much of the increased competition expected to come from investors and upgraders, economists revealed. All this will coincide with a still frantic rental market that will make it harder for new home buyers to save fast enough to match price rises. MORE: What homes will be worth in each suburb by 2030 MORE: Trick Aussies are using to get $200m+ mansions Gareth Croy, director of financial services firm Your Future Strategy, said first-home buyers are going to be 'chasing the market'. 'Another cut, plus more cuts later this year, could boost the average buyers' borrowing capacity by about $75,000. And we could see that amount added to prices by Christmas,' he said. 'Rate cuts do create this fear of missing out that can push prices up.' PRD chief economist Dr Diaswati Mardiasmo said the recent cut and subsequent cuts would make it harder for aspiring first-time buyers to get into the market in the coming months. 'First-home buyers who are ready to purchase right now might get some benefit from cheaper rates but those with longer-term plans are going to find it a lot harder,' she said. 'Part of the problem is that someone who isn't in the market yet will see their ability to save diminish because there is still high rent and high living costs and three or more cuts this year will push up the price they will pay for their home.' MORE: Wild bank move before rate cut The brutal twist is that those trying to save for a deposit could be hit twice. New research has found that the majority of Aussies are still banking with the same institution they joined as teenagers — often on outdated savings accounts with lacklustre interest returns. Banks have also historically been very quick to slash interest rates on savings accounts. With rates now slashed even lower, their hard-earned deposits are soon to be earning a lot less. KEY BANKING MISTAKE EXPOSED The polling by comparison group revealed 51 per cent of Aussies were sticking with the bank they joined as children, often in accounts set up by their parents. The research found 55 per cent of women were still with the same bank they had as a child, compared to 47 per cent of men. The trend was prevalent across all generations, with almost one in three baby boomers (30 per cent) still with their very first bank. Finder personal finance expert Sarah Megginson said these Aussies were likely missing out on a better deal. 'You can be sure there's a better rate available than the one on the account your parents opened for you as a child,' she said. MORE: 'Fuel to the fire:' looming rate cuts big downfall 'You might think your existing bank is 'good enough', but if you're not earning interest, it's your bank balance that is missing out.' It comes as additional modelling from Aussie Home Loans found that rising prices would likely outweigh the benefit of lower interest for first-time buyers. Those who bought next year could be stung with an additional $77,000 in costs over the life of their loans, the Aussie analysis found. RISING ANXIETY AMONG FIRST-HOME BUYERS Some first-home buyers say they are fearful of what the future holds. James Martin and Liz Upcroft, both 28, plan to buy a home later this year or early next and said they were concerned price rises could be too fast. 'Rate cuts are fantastic for people who already bought but for someone looking to buy at the end of this year, it's a bit of a worry because prices could go up a lot. It's a catch-22,' Mr Martin said. He added that the prospect of getting priced out the market had encouraged them to consider the government's First Home Guarantee Scheme, which will allow them to buy with only a 5 per cent deposit. 'I feel like if we wanted to get a 20 per cent deposit, the interest rate cuts would affect our savings and it would be a lot more of a problem,' Mr Martin said. IMPACT OF PREVIOUS CUTS Mortgage Choice inner west broker Chantelle Rangel said similar cuts in interest rates had heated the housing market in the past and this trend was already looking to be repeated. 'I've never been this busy before,' she said. 'What's interesting is, we've had a significant increase in investor pre-approvals as well as people wanting to purchase in their self-managed super funds. 'There is always a frenzy of demand as soon as rates drop … We experienced many buyers who were sitting on the sidelines due to affordability re-enter the market after the last rate cut.' REA Group economist Anne Flaherty said a similar trend even occurred when rates were last cut in February. 'Following February's rate cut, buy searches on jumped, consumer sentiment saw a significant recovery, and home price growth picked up,' she said. 'A rate cut in May is likely to have a similarly positive impact on buyer demand and confidence.' Peter Kelaher, director of buyer's agency PK Property, said in a note to clients that the experience of previous rate cuts suggested a wave of demand was coming. 'When interest rates come down, the natural human reaction in most cases will be to borrow as much money as you can,' he said. 'And what does that mean? It means one thing: people can throw around more money to be competitive at auction, and in general, the property market.' Owl Home Loans director Aidan Hartley said rate cuts had already driven a huge influx of buyers seeking approvals. 'I've been doing this a while and I've never been thrown as many contracts from new buyers,' he said. 'There's a big sense of urgency because a lot want to get in (to the market) before cuts because they're taking out variable rates,' he added. Compare the Market property expert Andrew Winter said a rate drop at the RBA's Tuesday meeting would likely push prices up again. He explained that cheaper credit would lead to bigger offers on properties, particularly in highly sought after areas. Mr Winter said aspiring buyers may be anxious to 'get a foot in the door' now before market conditions become too competitive. He said the capacity to borrow more money would not make buying a house easier for most people. 'The main hurdle for most first-time buyers is raising a deposit which can be extremely challenging when value growth outpaces wage growth in such an extreme way.'
