Q1 2024 Dubai Real Estate: Off-Plan vs. Ready Property Sales Analysis
Dubai’s real estate market remains a beacon for investors, with the first quarter of the year seeing the purchase of over 36,000 properties.
3 min
According to the Property Finder’s Market Watch digest for the first quarter of 2024, the Dubai real estate market has continued to attract attention for both off-plan and ready properties.
The report highlights that the sector saw more than 36,000 sales transactions during this period, marking it as the second-highest quarter for transactions on record.
The start of 2024 has witnessed robust demand for existing real estate projects in Dubai, signaling a strong market.
Surge in Dubai Real Estate Sales
The market for ready/existing properties saw nearly 19,600 transactions in the first quarter, accounting for 54% of all sales, up from the previous year’s 15,000 transactions which made up 48%. This represents a growth of 30% in volume over the same quarter last year.
The value of transactions for existing properties soared to AED78.2 billion ($21.3 billion), making up 68% of the quarter’s total sales value, an increase from 60% the previous year. This marks a significant 46% increase in value compared to Q1 2023’s AED53.6 billion ($14.6 billion).
Off-plan properties also saw movement, with about 16,600 transactions, slightly up from 16,000 in the previous year, representing a modest year-on-year volume increase of 4%.
The value of off-plan transactions for the quarter reached AED37.4 billion ($10.2 billion), accounting for 32% of the total transaction value, a 5% increase from the previous year’s AED35.5 billion ($9.7 billion), which represented 40% of the total value.
This positive trend provides a promising landscape for developers and brokers, underlining the sector’s growth and the opportunities that lie ahead in 2024. Data from the Dubai Land Department (DLD) confirms the upward trend, with over 36,000 transactions recorded, a 17% increase from the previous year.
Cherif Sleiman, Chief Revenue Officer at Property Finder, comments on the promising start to 2024, highlighting the diversified demand in the sector and the positive impact expected in the coming months.
Enhancing Transparency and Limiting Rent Increases
Meanwhile, in an effort to streamline rental adjustments and enhance transparency, Dubai’s Real Estate Regulatory Authority (RERA) has revised the rental evaluation process.
Effective April 1, landlords seeking to increase rent must now obtain a legal order or judgment, a move from the previously used rental calculator benchmark. This change, facilitated through the Rental Dispute Centre (RDC), aims to provide a fair and transparent basis for rental evaluations.
The revised RERA rent calculator, introduced on March 1, serves as the definitive guide for determining rental increases, limiting landlords from exceeding set benchmarks and ensuring fairness for tenants. The adjustment is seen as a move to solidify transparency and reliability in rental transactions.
According to early Q1 data, there have been 72,885 rental contract renewals, reflecting the significant volume of decisions made by tenants and landlords alike. This shift towards a more regulated evaluation process is expected to foster a fairer rental market.
The adjustments to the RERA calculator and the decrease in rental contract renewals by 7.2% year-on-year hint at a growing interest among tenants in homeownership, particularly in light of the rising rents.
This trend is further supported by attractive post-handover payment plans offered by developers, encouraging tenants to consider purchasing homes nearing completion.
This regulatory shift and market dynamics are anticipated to further encourage Dubai’s tenants towards homeownership, offering them a pathway to secure long-term housing solutions amidst the evolving real estate landscape.
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
A bold new corporate restructure to achieve its ambitious $27 billion portfolio goal
2 min
Omniyat, a distinguished name in Dubai’s ultra-luxury real estate sector, has embarked on a transformative journey by unveiling a new corporate structure under the newly formed Omniyat Group. This strategic move aims to unify and drive success across its various branded companies, setting an ambitious target of a AED100 billion ($27 billion) total group portfolio over the next five years.
This announcement signifies a pivotal moment for Omniyat Group, reaffirming its dedication to reshaping the real estate landscape not only in Dubai but across the broader region. As part of its growth strategy, Omniyat plans to significantly expand its footprint in the ultra-luxury real estate segment, aiming for a total portfolio value of AED50 billion.
Established in 2005 by Executive Chairman Mahdi Amjad, Omniyat was conceived with the vision of revolutionizing the Dubai property market through the creation of unique living experiences. The company has consistently elevated the standards in real estate, driven by a policy of strategic diversification that has enabled it to explore various market segments.
In line with this strategy, Omniyat Group is set to announce a new real estate company in Q3 2024. This new venture will be part of a commitment to invest AED50 billion in new real estate divisions targeting multiple market segments. This initiative underscores Omniyat’s ongoing commitment to understanding market demands and delivering on its bold vision to be “the best in class, in every class.”
By continuously evolving and adapting to market needs, Omniyat Group stands poised to lead the future of real estate in the region, setting new benchmarks in luxury and innovation.
Commenting on the launch, Amjad said: “Nineteen years ago, I founded Omniyat with a clear mission to achieve the unprecedented in Dubai’s real estate sector. A city of superlatives, Dubai is globally renowned for its remarkable story of progress and achievement, and we wanted to bring iconic projects to Dubai’s skyline that stood apart for their design, innovation, and artistry.”
“Encouraged by the UAE’s robust growth and long-term vision and inspired by the success of our ultra-luxury brand, I am establishing Omniyat Group to invest in other brands and companies to address different segments of the UAE’s strong growing real estate market with an uncompromising principle of ‘Best in class, in every class’ we address.”
“Today, Omniyat Group has been announced to drive forward our mission to elevate the people at the heart of our business and contribute to a better life and environment for all stakeholders, employees, clients, and their loved ones,” he stated.
“Guided by an unwavering commitment to excellence, we will continuously strive to raise standards and curate experiences that make life better, in every sector we engage in,” he added.
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
