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.
3 min
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
55-storey residential tower in Downtown Dubai
2 min
Fairmont Hotels & Resorts, a world-renowned luxury hotel brand within the Accor group, has partnered with UAE-based developer Sol Properties to unveil a prestigious residential development in Downtown Dubai, setting new standards in luxury real estate.
The 55-storey Fairmont Residences Solara Tower, the latest addition to Downtown Dubai’s skyline, offers breathtaking views of both the Burj Khalifa and the Dubai Fountain. Construction is currently in progress, with the project slated for completion by the third quarter of 2027.
This development seamlessly integrates Fairmont’s esteemed brand standards in luxury hospitality with Sol Properties‘ extensive expertise in high-end real estate, establishing new benchmarks in urban living. The residences feature meticulously designed spaces, blending elegance with timeless opulence.
Offering a range of spacious layouts and state-of-the-art amenities, these residences epitomize modern luxury living. Expansive terraces provide residents with stunning views of the Burj Khalifa and the iconic Dubai Fountain.
“We at Sol Properties and Fairmont Hotels & Resorts are elated to provide a completely new standard of luxury living in Downtown Dubai,” said its Founder and CEO Ajay Bhatia.
“Our goal is to provide residents with exclusive amenities and personalized services, thereby setting a new precedent for comfort and convenience for end users,” he stated.
“By combining Fairmont’s exceptional hospitality services with our integrated residential environment and attention to quality, this project is certain to offer residents unmatched lifestyle experiences,” he added.
Combining Fairmont’s exceptional hospitality services with Sol Properties’ commitment to quality, this project promises unparalleled lifestyle experiences. The residential development caters to the evolving needs of urban homeowners with a suite of premium amenities and services. Fairmont Solara Tower uniquely stands out by offering private swimming pools in selected apartments.
Residents will have exclusive access to a range of integrated amenities, including gourmet restaurants, fitness centers, and wellness facilities, providing a resort-like experience within their own homes.
Fairmont’s Global Chief Operating Officer Sami Nasser expressed excitement about adding this new branded residence to the Fairmont portfolio. “We are confident that our expertise in the field of luxury hospitality combined with our pioneer approach to residential projects will allow us to redefine the landscape of luxury residences in Dubai and the broader region,” he noted.
The project exemplifies the ongoing expansion and appeal of luxury living in Dubai, especially with the luxury residential real estate market projected to grow by more than 8% by 2029.
“Additonally, the project will redefine the concept of luxury residences with Dubai’s strategic location and investor-friendly regulations, which attract high-net-worth individuals and investors seeking to diversify their portfolios,” said Nasser.
Fairmont Residences Solara Tower Dubai joins a prestigious portfolio of 16 Fairmont-branded residences, with 22 more projects in the pipeline.
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
