The Dynamics of some of the Gulf Real Estate Markets
The real estate landscape in some of the Gulf region presents a study in contrasts, with Abu Dhabi experiencing an unprecedented boom, Dubai rolling out attractive offers, and Oman witnessing a decline in transactions at the outset of 2024.
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The dynamic shifts observed across these markets highlights Abu Dhabi‘s remarkable growth in transaction value and volume, Dubai’s strategic marketing moves to captivate Ramadan buyers, and Oman’s challenging start to the year.
Through examining the strategies, results, and economic indicators driving these changes, below we will shed the light on the complexities and opportunities within some of Gulf’s real estate sector.
Abu Dhabi’s Real Estate Experiences Unprecedented Growth
The real estate market in Abu Dhabi has witnessed significant expansion, with a notable surge in the value and number of transactions. The Abu Dhabi Real Estate Centre (ADREC), an affiliate of the Department of Municipalities and Transport (DMT), reported that real estate transactions amounted at AED87.1 billion ($23.7 billion) last year. This marks a significant jump of 159.5% in the value of buying and selling activities, totaling AED61 billion ($16.6 billion), when compared to the year 2022. The increase is attributed to 15,653 transactions, indicating a 73.7% rise from the previous year.
The total number of transactions, including buying, selling, and mortgage transactions, registered a growth of 12.2% compared to 2022. The count of these transactions surpassed 22,751, marking an increase of 19.5% from the year prior.
Additionally, ADREC noted a growth in both resident and non-resident investor participation in 2023, signifying the real estate market’s diversity. The year saw the registration of 9,448 new investors and 1,098 non-resident investors, marking increases of 71% and 175% respectively from 2022.
This growth underscores Abu Dhabi’s position as a prime destination for real estate investment, reflecting the leadership’s vision and the ongoing progress and expansion of the emirate’s real estate market.
ADREC’s efforts are aimed at enhancing Abu Dhabi’s global appeal in the real estate domain and fostering growth across the real estate ecosystem, attracting both local and international investment.
Dubai Real Estate Offers Attract Buyers During Ramadan
In Dubai, the leading real estate developers are introducing appealing offers, including price reductions and fee waivers, to attract buyers during Ramadan. Developers like Danube, Tiger Properties, and DAMAC Properties are implementing significant discounts and promotional strategies.
Offers include up to 15% discounts on payment plans, full furnishing, and partial waivers on Dubai Land Development fees, tailored to draw buyers in what is traditionally seen as a slower period for real estate purchases.
This Ramadan season is described as presenting unique investment opportunities, with developers launching targeted promotional campaigns. Additionally, adjustments in administrative processes due to shortened working hours are advised for smooth transactions.
Despite a seasonal perception of slowdown, the Dubai real estate market remains active, with a significant portion of business occurring post-iftar. This adaptability and continued investor interest highlight the market’s robustness.
Oman Real Estate Sees Decline in Transactions
In contrast, Oman’s real estate market experienced a downturn in January 2024, with transactions decreasing by 20.2% to OR207.8 million ($540 million), compared to OR260.5 million ($677 million) in the same period of 2023.
Traded value of sale contracts decreased by 14.7 per cent to OR101m ($262.3m) at the end of January 2024, while the number of sale contracts rose by 6.6 per cent to 6,124.
Oman real estate traded value of mortgage contracts decreased by 25.4 per cent to OR105.4m ($274m) compared to OR141.3m ($367m) during the same period of 2023.
Despite the decrease in the traded value of sale and mortgage contracts, there was a slight increase in the fees collected for legal actions, indicating a mixed outlook for Oman’s real estate sector.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
This collaboration will extend into the fourth phase of Azizi’s Riviera project in MBR City, with Cummins supplying top-tier power generators.
2 min
Azizi Developments, a prominent private developer in the UAE, and Cummins Inc., a global leader in power solutions design, manufacturing, distribution, and supply, are extending their partnership into the fourth phase of the large-scale Riviera project. Cummins, known for its diverse range of products including diesel, natural gas, electric, and hybrid powertrains, as well as powertrain-related components, like filtration, after-treatment, turbochargers, fuel systems, control systems, air handling systems, automated transmissions, electric power generation systems, batteries, hydrogen generation, and fuel cell products. The manufacturer is globally renowned for its excellence in both innovation and sustainability.
Mr. Farhad Azizi, CEO of Azizi Developments, said: “As we continue our collaboration with Cummins Inc. for the fourth phase of our flagship project, Riviera, we reaffirm our commitment to procuring and utilizing only the highest quality materials. This partnership highlights our dedication to providing exceptional lifestyles for our investors and end-users through the careful selection of premium components. We are confident that our now-broadened alliance with Cummins Inc. will help in maintaining the high standards established for Riviera and further elevate the benchmarks of quality and excellence.”
Riviera is part of Azizi Developments’ award-winning portfolio. It is a stylish waterfront lifestyle destination that comprises 75 mid- and high-rise buildings with approximately 16,000 residences.
Designed to introduce the French-Mediterranean lifestyle to Dubai, which is not merely about architectural art, but also about a certain ‘joie de vivre’ — a celebration of life, an exultation of spirit, Riviera represents a new landmark destination that is both residential and commercial, with an abundance of retail space. Riviera features three districts: an extensive retail boulevard, a lagoon walk on the shores of its 2.7 km-long swimmable crystal lagoon with artisan eateries and boutiques, and Les Jardins — a vast, lush-green social space.
With its strategic location near the upcoming Meydan One Mall and the Meydan Racecourse — home of the Dubai World Cup — as well as Dubai’s most noteworthy points of interest, Riviera represents one of Azizi Developments’ most coveted projects.
Azizi Developments’ Sales Gallery can be visited on the 13th floor of the Conrad Hotel on Sheikh Zayed Road.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
