What the Federal budget means for Australia’s housing market
12 min
ANALYSIS: Amid a national rental crisis, fast recovering population growth, and constrained housing supply, measures to address the housing shortage and worsening affordability featured prominently in this year’s budget.
While renting is a vital part of Australia’s housing market, it has been failing many.
Nationally, advertised rents have soared 11% year-on-year, and vacancy rates are at historic lows. With the outlook remaining challenged, the budget’s new housing line items honed in on this area.
Increased assistance payments for low-income renters, measures to boost rental supply and measures to increase construction of social and affordable rental housing are the big-ticket items.
Given the one in three households that rent are more likely to be younger Australians, on lower incomes, with less wealth than owner-occupiers, and typically lower savings buffers, the measures will come as some relief.
Commonwealth Rent Assistance increases
Commonwealth Rent Assistance is already available to Australians on pensions and benefits including JobSeeker, the Family Tax Benefit and Parenting Payment.
The budget has delivered funding to increase the maximum rates of the Commonwealth Rent Assistance payment by 15% in a bid to help ease pressures on low-income renters.
The maximum increase will be between $15.73 and $31.76 a fortnight.
Renters currently receiving Commonwealth Rent Assistance will receive up to $31 extra a fortnight from September, a measure aimed at assisting vulnerable lower-income renters. For most low-income earners, rent assistance is a targeted and cost-effective safety net.
Strong demand to rent, bolstered by the fast pace of immigration, is well outstripping the supply of available rentals, with the total supply of rentals in the capital cities sitting at historic lows in March, with the supply of available rentals down 18.3% year-on-year.
Meanwhile advertised rents in the capital cities increased by 13% over the year to March with the extreme shortage of rental stock weighing.
This increase to Commonwealth Rent Assistance is the largest in more than 30 years, but rent assistance payments have long fallen behind soaring rental prices.
In the capital cities rental prices are up 18% on pre-pandemic levels, while in regional areas rents are up 23%.
Capital city rental markets are significantly undersupplied. As a result, prices are rising briskly and vacancy rates trending lower.
Rental prices are rising across the country amid low supply and high demand. Picture: Chris Pavlich.
Pegging payments to adjust in line with subsequent market rental price increases in the future, or a regular review schedule to ensure that assistance payments keep pace with surging rents, could have been a welcome step further.
The persistent undersupply of properties available to rent is pushing vacancy rates lower. And with rental demand outstripping supply, weekly rents are increasing strongly. And without a meaningful increase in rental supply on the horizon rental prices will continue to grow in the coming months.
But rental price increases aren’t the only problem. These challenges don’t just manifest in budgetary constraints as weekly rents increase, but with fierce competition properties are renting out at record speeds and finding an available rental is tough. The level of competition for limited rentals is forcing many to make sacrifices.
In the long run, the best solution is to provide more dwellings, but this takes time.
New tax break for build-to-rent sector
The only sustainable solution to the rental crisis is increasing rental supply.
Building approvals have fallen sharply over the past year are now sitting at decade lows, led by a significant 46% year-on-year drop in approvals for private sector apartments, especially larger builds.
Industry challenges, higher construction costs and labour shortages are set to see growth in the supply of new rentals remain limited, at a time when there is already a severe shortage of available rentals.
This is a problem; the supply side of the housing market should be better able to adjust when needed.
An increase to the available pool of long-term rentals could come from increased activity from both small and large-scale investment.
Last year’s budget announcement, the Housing Accord aims to build one million, new, well-located homes over 5 years from 2024.
This budget aims to help achieve this by incentivising an increase in the supply of rental housing by reducing barriers to entry and tax disincentives for large scale investment via the build-to-rent sector.
Treasurer Jim Chalmers has handed down his second budget. Picture: NCA NewsWire/ Dylan Robinson
Build-to-rent is a real estate development model where a property is constructed specifically for the purpose of renting it out, often with long-term leases and professional property management.
This sector could play a helpful role in alleviating rental supply constraints.
The withholding tax rate will be cut from 30% to 15% for eligible fund payments from managed investment trusts to foreign residents on income from newly constructed residential build-to-rent properties after 1 July 2024, subject to further consultation on eligibility criteria.
The depreciation rate will rise from 2.5% to 4% per year on eligible new build-to-rent projects where construction starts after May 9, increasing the after-tax returns for build-to-rent developments.
Build-to-rent dwellings must also offer a lease term of at least 3 years for each dwelling, meaning a predictable income stream for developers but also stable longer-term tenure for tenants.
While encouraging increased investment and construction of build-to-rent projects won’t help with the current pressures and low supply of rentals, advancing the build-to-rent sector could help increase rental supply in the long term.
But is it enough to move the dial?
The budget states industry estimates that cutting taxes on build-to-rent developments could lead to an increase of 150,000 new rental properties over the next 10 years.
150,000 additional rental properties would be a just over 6% increase to our current total rental stock over the next decade.
In the year to September 2022 the population swelled by a record 418,500 people, driven by net overseas migration of more than 300,000 people in the same period, a near record. In fact, Australia experienced the largest quarterly net inflow of overseas migrants on record in the September quarter at 106,000 people.
Treasury estimates there will be an influx of 650,000 migrants over the course of this financial year and next.
Based on ABS household projections out to 2033, 150,000 new rentals will cover just 9.6% of the forecast increase in the number of households.
Meaning with the faster than expected return of immigration and strongly rebounding population growth, 150,000 additional rental properties in a decade will aid rental supply shortages but probably won’t provide enough of an increase.
Build-to-rent is already an established asset class in the US, Europe, and Japan and could be a key missing ingredient to the housing mix in Australia.
Encouraging smaller investors to return to the market is a missing ingredient in today’s budget.
Although advancing the build-to-rent sector is a welcome measure, policy that aims to incentivise small scale investment via “mum and dad” into the housing market thus adding to rental supply appears to be missing.
Social and affordable housing
The government also announced an extra $2 billion to lower the cost of construction of social and affordable dwellings.
The additional $2 billion is set to increase the National Housing Finance and Investment Corporation’s (NHFIC) liability cap from $5.5 billion to $7.5 billion from 1 July 2023, which will enable the NHFIC to support more social and affordable rental homes through lower cost loans to community housing providers.
The increased funding for social and affordable housing will help provide stable and secure housing options for those who need it, but while social housing is a good safety net for those at high risk of long-term homelessness who can’t access private housing, it is an expensive solution.
The additional billions are expected to support around 7,000 more new social and affordable dwellings, a step in the right direction, but the impending increases to rental assistance will be a better targeted measure.
What’s ahead for the rental market?
Strong rent growth is likely to persist this year. This is particularly the case in Sydney, Melbourne and Brisbane, where most arrivals first land and rental supply is tight. Adelaide and Perth also have very constrained supply conditions.
However, renters in Hobart and Canberra now have much more choice with total listings available to rent close to double the record low levels recorded in September 2018 and around 50% higher than pre-pandemic levels – a factor that has contributed to rental vacancy rates easing in these two cities over the past year.
Renters in Hobart are enjoying more choice following record low supply in recent years. Picture: Supplied
Demand to rent remains elevated in inner-city areas following the return to offices and universities, while supply shortages are set to remain for now.
Strong migration, low vacancy rates and limited new supply means tough conditions for renters are likely to remain.
To address the housing shortage and cater for our growing population, it is key that we continue to focus on building more homes.
Unfortunately, incentivising investors to return to the market is a missing ingredient in the budget.
Homebuying incentives – eligibility expanded but many miss out
The government has also expanded the eligibility criteria for the First Home Guarantee, and the Regional First Home Buyer Guarantee.
The schemes have previously only been available to singles and married or de facto partners, but now the expanded classification of a “couple” includes friends, siblings, and other family members, meaning they will be eligible for joint applications from July 1, 2023.
The guarantees will also be expanded to non first-home buyers who haven’t owned a property in Australia in the past 10 years, supporting those who have fallen out of homeownership, now also including permanent residents.
The Family Home Guarantee will also be expanded to be available to eligible borrowers who are single legal guardians of children such as an aunt, uncle or grandparent, in addition to single natural and adoptive parents.
These changes build on last year’s increase in the number of places available – 35,000 per year for the First Home Guarantees, 10,000 places per year under the Regional First Home Buyer Guarantee, and 5,000 places per year to 30 June 2025 under the Family Home Guarantee.
In the current environment, while home prices in most markets are slightly lower now than they were 12 months ago, borrowing costs are higher and prices have fallen by much less than the calculated shift in borrowing capacities would imply.
Affordability has deteriorated markedly, to the worst levels since the 1990s on some measures, and repayments are now very high relative to history in real terms.
These conditions are challenging for first-home buyers, for whom the most significant hurdle to home ownership is the deposit burden. The expanded Home Guarantee Scheme aims to tackle this issue.
The First Home Guarantee scheme allows an eligible applicant to buy with just a 5% deposit, with the government guaranteeing the remaining 15%.
Expanded homebuying schemes could see more Australians own a home sooner. Picture: Getty
While the time taken to save for a deposit is influenced by many factors, such as your savings rate and how much you can afford to put aside each month towards a deposit, assuming all other variables remain constant, saving for a 5% deposit will take less time.
For example, let’s say you’re buying a home worth $800,000, and you want to save for the deposit. A 20% deposit would be $160,000, and a 5% deposit would be $40,000. That means you would need to save an extra $120,000 for the 20% deposit compared to the 5% deposit.
If you can save $1,000 per month towards the deposit, it would take you 10 years to save $120,000 for the 20% deposit, and 2.5 years to save $40,000 for the 5% deposit. Therefore, you would save 7.5 years by utilising the 5% deposit instead of the 20% deposit.
By reducing how much deposit they must save, and expanding the definition of a “couple” the scheme will help some Australians purchase a home sooner than they otherwise could have.
To be eligible for the scheme, the property you buy must fall under a certain price cap.
These price caps will remain a constraint for some first-home buyers because they rule out more than half of homes in some capitals.
Eligible applicants will have plenty of choice in Darwin, Perth and Melbourne but less in Sydney, Hobart and the least in Canberra.
Looking at smaller geographical areas, it’s clear the caps will be more binding in inner-city areas where prices are highest and areas with more expensive dwellings, like Dural, and Baulkham Hills for example.
Risks of expanded scheme
The key feature of the scheme is that borrowers are taking out higher loan-to-valuation ratio mortgages. That means price falls of as little as 5% would take the borrower underwater – owing more on their mortgage than their home is worth.
There are risks to taxpayers too. If the borrower was to subsequently default while underwater, losses on mortgages guaranteed by the scheme would be borne by taxpayers.
The substantial interest rate tightening that has been pushed through already saw conditions in the housing market rebalance quickly last year, with prices falling from peak levels in most parts of the country.
Prices nationally fell for nine consecutive months, but that trend has reversed this year with national home prices rising for four consecutive months.
The impact of interest rate rises is being counterbalanced by stronger housing demand and tight supply conditions.
Although home prices have begun to increase again this year, the risk of further price falls remains if the downturn seen for much of last year were to find a second wind, meaning these risks are more elevated than they have been in recent years.
Many will still miss out
The scheme will help some purchase sooner than they otherwise could have, likely increasing demand and therefore prices of certain types of properties soon after.
Though the impact on prices and the housing market is likely to be limited.
First-home buyers accounted for just 16.5% of new lending in March according to the Australian Bureau of Statistics.
However, the allocation for each guarantee scheme has not increased.
Many first-home buyers will still miss out given the limit of 35,000 places. Over the past 5 years the number of first-home buyers taking out mortgages has averaged more than 120,000 per annum.
And in the past 12 months 102,060 first-home buyers took out mortgages.
The allocation caps will limit the effectiveness of the scheme, but it is also increasing or bringing forward demand for housing without increasing supply to match.
The end result is many who are finding it both hard to buy and increasingly hard to rent will miss out, meaning the benefits of the scheme are a drop in the ocean in resolving housing affordability.
The only long-term solution to housing affordability is to build more of the right homes in the places where people want to live.
Building more homes remains key to improving housing affordability. Picture: iStock
It’s clear what’s missing is a serious plan to reform state and local government planning systems and to increase the supply of new dwellings. Demand-side incentives should be tied to unlocking land, improving planning efficiencies, and boosting new supply.
There is mention that planning ministers, working with the Australian Local Government Association, will develop a proposal for National Cabinet in the next 6 months outlining reforms to increase housing supply and affordability – but no concrete measures are outlined in the budget.
With Australia’s population set to keep growing over the next two decades, building more new homes where people want to live will be critical if we are serious about tackling housing affordability.
Stamp duty reform a missed opportunity?
Deteriorating housing affordability was a key focus of the Federal Budget, seeking to alleviate some of the pressures both those looking to buy or rent currently face.
But stamp duty reform was not one of them.
Support for the states to transition from stamp duty to a broad-based land tax must be seriously explored if we hope to create a strong structural foundation for an efficient and equitable property market.
Stamp duty reform is needed to allow the property market to function more efficiently in all states.
Some of the issues identified with stamp duties are that they increase the cost of housing, increase the deposit burden and disincentivise household mobility.
Stamp duty is an inefficient tax that acts to slow the property market, reduces economic growth and makes housing less affordable.
The former NSW Treasury estimated that eliminating stamp duty could unlock $10 billion in economic value.
Stamp duty is seen as a barrier to homeownership, but also a disincentive to rightsizing. Picture: Getty
State governments replacing stamp duty with an annual land tax would help to better utilise the available housing stock.
Stamp duty makes it harder for many first-home buyers to buy a home because it is an upfront additional cost on top of the deposit you have to save. In Sydney it takes 7 years to save a 20% deposit for an entry-level home. In Melbourne, it takes a little over 6 years.
Stamp duty adds to this deposit hurdle.
Stamp duty for a relatively affordable home adds around an extra year of saving in most cities.
State governments already recognise the impact of stamp duty on first-home buyers; that’s why most states offer stamp duty concessions or waivers for first-home buyers.
Home ownership rates have been declining among younger, lower income Australians for decades. Reducing up front purchase costs for first-home buyers by replacing stamp duty with an annual land tax, would reduce the deposit hurdle for first timers and allow many to purchase sooner.
Stamp duty also discourages right sizing, with many “empty nest” households not needing as much space as they have. But they keep it because downsizing is unattractive due to the size of transfer costs.
The big barrier here is stamp duty, which adds to the cost of downsizing, promoting inefficient use of existing housing stock.
But stamp duty is also a barrier to moving in general, for example for a new job.
Reforming stamp duty could not only help younger households and improve housing affordability, but also better utilise Australia’s existing dwelling stock. A clear win in the face of a growing population and existing housing shortage.
This story is reprinted with permission from PropTrack.
Dubai homebuyers are increasingly prioritizing lifestyle over price, with 63% focusing on location, community amenities, and long-term value, according to new data from TownX Real Estate Development, highlighting rising demand for walkable, mixed-use communities that enhance quality of life across Dubai.
Dubai’s record property sales in 2025 were matched by strong industry growth, with the number of real estate agencies and registered brokers rising sharply, signalling a maturing market beyond speculation. Industry leaders say increased competition is driving higher standards, greater selectivity in the luxury segment, and stronger focus on quality, trust, and long-term value, as investor returns and capital gains across property sectors continue to climb.
Dubai Land Department has launched an awareness campaign on the Ejari system under the slogan “Step by Step”, aimed at simplifying lease registration procedures and enhancing transparency in Dubai’s rental market. The initiative provides clear, accessible guidance on key services for landlords, tenants, and brokers through DLD’s official digital platforms, reinforcing trust, customer experience, and market stability.
Located in Al Jaddaf, the AED 240 million development blends neuroarchitecture with modern urban living, offering freehold homes, lifestyle amenities, and strong connectivity. The launch comes as JAD Global’s Dubai investment portfolio surpasses AED 1 billion.
2 min
JAD Global Real Estate Development, a UAE-based developer focused on holistic wellness, launched J188, its latest residential project in Dubai, offering elevated urban living spaces at the intersection of the emirate’s heritage and modern skyline. Incorporating neuroarchitecture elements, the AED240 million J188 development is designed to create a seamlessly serene home environment while simultaneously energizing the lifestyles of its residents.
The announcement follows the successful sell-out of JAD Global’s earlier residential project, 171 Garden Heights and comes alongside the introduction of JAD 288, a three-building community in Jumeirah Garden City. The value of JAD Global’s Dubai real estate investment portfolio now stands at more than AED 1 billion.
J188 was launched at a VIP gala dinner at Jumeirah Burj Al Arab, bringing together senior officials, investors, strategic partners, and media representatives. The event featured a range of wellness experiences which reflect JAD Global’s brand and lifestyle offerings, including oxygen therapy and immersive meditative music.
Located in Al Jaddaf, J188 is a 13-storey residential building offering one- and two-bedroom freehold apartments, thoughtfully designed around wellness, comfort, and everyday living. The homes offer sweeping views of Dubai Creek and Downtown Dubai from a location that boasts strong connectivity to transport links and key city destinations.
The project places a strong emphasis on thoughtful, value-oriented, and wellbeing-led design. This includes a curated range of lifestyle and community amenities such as a rooftop skyline pool, a sky view deck overlooking the creek, fitness and wellness spaces, a padel court, co-working areas, landscaped gardens, and family-friendly zones. Residences are designed to support privacy and long-term livability, reflecting JAD Global’s focus on human-centric urban environments.
JAD Global CEO, Mohammed Al Sheikh said: “J188 marks the next phase of JAD Global’s expansion as we continue to broaden our residential portfolio in Dubai, one of the fastest growing real estate investment destinations in the world. Institutional investor backing for this project highlights confidence in our business model and our ability to deliver, while J188 itself represents our continued focus on well-designed, well-connected residential spaces that respond to how people want to live.”
J188 offers freehold ownership for all nationalities, with the potential for 10-year UAE Golden Visa eligibility, subject to applicable requirements, enhancing its appeal to both end-users and long-term investors. Buyers will also benefit from a flexible 50/50 payment plan, structured to support accessible ownership throughout the construction period, with completion anticipated in Q2 2028.
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
AMIS GPD Development has entered into an agreement with luxury watch and jewellery brand Jacob & Co. to develop a high-end villa community in Meydan, one of Dubai’s most prestigious districts. The collaboration brings together real estate expertise and global design excellence to deliver a luxury residential project that sets a new benchmark for exclusivity, craftsmanship, and modern living in Dubai.
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AMIS GPD Development, a part of AMIS Group, entered into an agreement with high watchmaking, high jewellery brand Jacob & Co. to build a luxury villa community in the Meydan, Dubai.
The signing ceremony, held at the AMIS Sales Centre on Sheikh Zayed Road, was attended by Jacob Arabo, Founder, Chairman and Creative Director of luxury brand Jacob & Co., Neeraj Mishra, Founder and CEO of AMIS GPD Development and Shah Azim Hameed shareholder of AMIS GPD Development.
The collaboration between Jacob & Co. and AMIS GPD Development will craft a high-end residential community in the exclusive Meydan area of Dubai. The community embodies the uppermost level of luxury, exclusivity and modern living. Situated in one of Dubai’s most prestigious districts, the project will integrate the finest materials, design and technology, setting a new standard for Dubai’s luxury villa market.
Speaking at the event, Jacob Arabo, Founder and Chairman of Jacob & Co., commented: “Our collaboration with AMIS GPD Development represents a fusion of two brands that share a passion for excellence. We are creating a truly unique living experience. The community we’ll build together will be a beacon of sophistication and luxury in Dubai.”
Neeraj Mishra, Founder & CEO of AMIS GPD Development, added: “This cooperation marks a key milestone for AMIS as we continue to expand our footprint in Dubai’s luxury market. Our joint efforts with Jacob & Co. ensure that this project will be unparalleled in design, craftsmanship and innovation.”
Shah Azim Hameed, shareholder of AMIS GPD Development stated: “This collaboration is a clear reflection of our long-term conviction in Dubai’s luxury real estate sector. This project allows us to combine strong development fundamentals with global design excellence. Together, we are laying the foundation for a distinctive residential offering that is both enduring and future-focused.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Interior designer Thomas Hamel on where it goes wrong in so many homes.
Saudi developer Dar Global is set to launch two Trump-branded luxury projects in Riyadh and Jeddah worth $10 billion, including a golf course, hotel, and mixed-use development, supporting Vision 2030 and foreign investment growth.
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Saudi real estate developer Dar Global DARD.L will launch two Trump-branded luxury projects in Riyadh and Jeddah with a combined value of $10 billion, CEO Ziad El Chaar said on Sunday.
The projects include the Trump National Golf Course and Trump International Hotel in Riyadh’s Diriyah, a massive development project on the Saudi capital’s western edge, said Chaar.
In Jeddah, mixed-use offices and residential property are planned in a development named Trump Plaza, Chaar added.
The projects are in line with Saudi Arabia’s Vision 2030 to diversify the economy away from oil, Chaar said, with the aim of attracting direct foreign investment. Saudi Arabia also plans to allow foreigners to own property for the first time in designated areas, starting this month.
The latest in a series of partnerships between the Trump Organization and Dar Global, the international arm of Saudi developer Dar Al Arkan, is expected to be completed over the next four to five years, said Eric Trump, U.S. President Donald Trump’s son and executive vice president of the Trump Organization.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
Dubai homebuyers are increasingly prioritizing lifestyle over price, with 63% focusing on location, community amenities, and long-term value, according to new data from TownX Real Estate Development, highlighting rising demand for walkable, mixed-use communities that enhance quality of life across Dubai.
2 min63% of homebuyers in Dubai are now placing greater emphasis on location, community amenities, and lifestyle value than on price when making purchasing decisions, according to new data released by TownX Real Estate Development, one of Dubai’s fastest-growing developers with an AED 4 billion project portfolio.
Statistics derived from TownX’s proprietary data, customer insights, sales performance, market trends, and observational analysis over the past six months revealed that buyers are increasingly focused on long-term value, favoring walkable communities, access to retail and F&B, proximity to schools, wellness facilities, and integrated lifestyle experiences over short-term cost considerations.
The shift comes as Dubai continues to attract a diverse and discerning buyer base seeking elevated living standards.
Haider Abduljabbar, Executive Director at TownX commented: “This is what we’ve been seeing on the ground. Today’s buyers are seeking a complete lifestyle when purchasing a property, and do not settle for the basic real estate purchase. Communities that offer strong connectivity, modern amenities, and thoughtful design are now commanding significantly more interest than properties judged solely on price.”
The data reveals that demand is strongest in mixed-use, master-planned communities that blend residential, retail, and leisure elements, with buyers demonstrating a clear willingness to invest in developments that enhance their quality of life.
TownX attributes this shift to Dubai’s maturing real estate landscape, where end-users and investors are prioritizing long-term livability and community-centric environments.
“Given the realities on the ground, we’ve aligned our development strategy with these evolving expectations. Our goal is to create human-centric, accessible communities that resonate with modern homeowners offering the right mix of convenience, comfort, and value for years to come,” Abduljabbar added.
TownX manages a rapidly expanding pipeline of residential and mixed-use projects across key locations in Dubai. The company continues to see strong interest from both local and international buyers drawn to the emirate’s economic momentum, infrastructure development, and world-class lifestyle offering.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Dubai’s record property sales in 2025 were matched by strong industry growth, with the number of real estate agencies and registered brokers rising sharply, signalling a maturing market beyond speculation. Industry leaders say increased competition is driving higher standards, greater selectivity in the luxury segment, and stronger focus on quality, trust, and long-term value, as investor returns and capital gains across property sectors continue to climb.
2 minRecord-breaking Dubai property sales in 2025 were matched by unprecedented growth across the real estate industry, with a luxury developer saying this shows the market is maturing beyond speculation.
New data from DXB Interact reveals that the number of Dubai real estate agencies increased by 39.7% to 9,728 last year, while registered agents climbed by 34.5% to 32,317.
Talal M. Al Gaddah, CEO and Founder of the Keturah luxury brand, welcomed the dramatic industry expansion, firmly believing it reflects a deeper, more competitive market, and this naturally raises standards.
“With greater choice, buyers compare more rigorously, brokers prioritize proven projects, and brand, delivery track record and product quality become decisive,” said Talal.
“In the luxury segment especially, abundance doesn’t drive volume; it drives selectivity, favoring developers that offer trust, differentiation and long-term value.”
Around 700 brokers from across the industry, including some of Dubai’s newest agents, will attend Thursday’s launch event for the final phase of sales at Keturah Reserve, the AED5.7 billion luxury residential development.
It takes place against a backdrop of soaring returns for Dubai real estate investors. DXB Interact data shows that 2025 produced AED86 billion in capital gains for buyers, with significant YoY increases in each property sector, as shown here:
| Asset Type | Volume | Value (AED) | YoY Increase |
| Apartment | 37,188 | 19.7B | 35.16% |
| Villa | 11,325 | 28.8B | 66.83% |
| Commercial | 2,900 | 3.4B | 80.14% |
| Plot | 2,114 | 34.1B | 155.13% |
Thursday’s event at the JW Marriott Hotel in Dubai is organized by fäm Properties, appointed as exclusive Master Agency to oversee sales at Keturah Reserve, the master community from developer MAG at Mohammed Bin Rashid City’s District 7 in Meydan.
Firas Al Msaddi, fäm’s CEO, sees the event as a chance to forge stronger collaboration across the real estate industry. ” We’re moving away from pure competition toward agencies and brokers working together to build a stronger market,” he said. “Sharing knowledge and resources creates a more transparent industry that benefits everyone.”
Around 700 fäm Properties brokers were attending their own launch event today. Al Msaddi says: “The advantage of investing in a master community like Keturah Reserve is the consistent standard maintained by a single developer with long-term interest in its success, overseeing commercial spaces, amenities, and asset management to protect property values and quality.”
A bio-living residential development designed around nature and wellness, Keturah Reserve comprises 533 low-rise apartments, 93 townhouses, and 90 villas on a nature-focused site.
With townhouses sold out, more than 40% of apartments are already committed. Handovers start with townhouses in Q2 2027, followed by apartments in Q3–Q4 2027, and villas in Q1 2028.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Dubai Land Department has launched an awareness campaign on the Ejari system under the slogan “Step by Step”, aimed at simplifying lease registration procedures and enhancing transparency in Dubai’s rental market. The initiative provides clear, accessible guidance on key services for landlords, tenants, and brokers through DLD’s official digital platforms, reinforcing trust, customer experience, and market stability.
< 1 minDubai Land Department (DLD) has launched an awareness campaign on the ‘Ejari’ system as part of its ongoing initiatives to reach all customer segments. This aligns with the DLD’s continued commitment to raising awareness of lease registration procedures, regulating the landlord-tenant relationship, and enhancing the customer experience in Dubai’s rental market, while ensuring the protection of all parties’ rights and reinforcing the principles of transparency and trust.
The campaign is launched under the slogan ‘Step by Step’ and focuses on delivering clear, simplified awareness content that addresses the most common inquiries about Ejari services. This includes lease registration and cancellation, certificate downloads, calculation of rental increase percentages, and notification and non-renewal procedures, in accordance with the approved legal and regulatory frameworks in the Emirate.
The campaign aims to empower customers with a clearer understanding of procedures, reduce the need for repeated inquiries, and enhance the overall user experience by providing accurate, up-to-date information that meets the needs of landlords, tenants, and real estate brokers through unified, easily accessible digital channels.
Dubai Land Department is implementing this campaign across its digital platforms, including its official website and social media channels, as well as through visual and audio awareness content. This underscores the DLD’s commitment to simplifying the customer journey, enhancing customer happiness, and supporting the sustainability and stability of Dubai’s rental market.
Dubai Land Department encouraged stakeholders, including landlords, tenants, and real estate brokers, to use its official channels and access available awareness materials to benefit from the guidance and digital services provided by the Ejari system.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
As the UAE enters 2026, its real estate sector continues to gain momentum, supported by population growth, strong residential demand, and innovations such as property tokenization, according to eToro’s Farhan Badami. Initiatives like blockchain-based ownership are set to enhance liquidity and broaden the investor base, reinforcing fundamentals-driven growth.
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As the UAE heads into 2026, its real estate sector is entering the year on the back of robust growth, underpinned by strong population inflows, sustained residential demand, and emerging innovations such as property tokenization, according to Farhan Badami, Market Analyst at eToro.
“The UAE’s real estate market continues to benefit from powerful structural tailwinds,” Badami said. “Population growth remains a key driver of housing demand, while new technologies such as tokenization are beginning to reshape how properties are bought, sold and valued across major markets like Dubai and Abu Dhabi.”
Both Dubai and Abu Dhabi are experiencing a demographic expansion that continues to support residential demand. Dubai’s population surpassed four million in 2025, with more than 208,000 new residents added over the year. This growth, driven by employment opportunities, lifestyle appeal and long-term residency initiatives, has translated into record activity levels in the property market.
“In 2025 alone, Dubai recorded property transactions exceeding AED 680 billion, representing year-on-year growth of around 30%,” Badami noted. “Abu Dhabi is showing a similar pattern, with residential demand growing by approximately 5% to 6% annually, significantly outpacing the rate of new housing supply.”
Looking ahead to 2026, one of the key developments to watch will be the shift towards tokenization and fractional ownership. What was once largely theoretical is now moving into practical implementation, with Dubai’s Land Department launching a tokenization pilot that integrates blockchain-based property titles into the official land registry.
“This initiative has the potential to fundamentally change how real estate is traded,” Badami said. “Tokenization could allow investors to purchase fractional ownership in property assets with greater speed, transparency and efficiency, while also improving market liquidity over time.”
He added that sustained population growth continues to support pre-sales activity, pricing power and recurring rental income, while a more mature market environment favors well-capitalized developers with strong land banks and proven execution capabilities.
“At the same time, innovation such as tokenization may open up new funding channels and broaden the investor base,” Badami explained. “For investors, this reinforces the appeal of established developers with meaningful exposure to residential demand in Dubai and Abu Dhabi.”
From an equity market perspective, Badami believes the real estate upswing points to a sector supported by fundamentals rather than speculation.
“For stocks linked to the real estate ecosystem, from developers to financial institutions, the outlook suggests scope for steady earnings growth,” he said. “Healthier cash flows also support the potential for sustainable dividend growth, which will be a key focus for income-oriented investors in the year ahead.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Real estate activity declined between Dec 21–25, with transactions falling to 136 worth KD69.85 million, down 55.3% in value and 8.7% in volume week-on-week. The slowdown reflects investor caution following the implementation of new real estate legislation.
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The real estate market witnessed a decline in trading activity from Dec 21- 25, with 136 transactions valued at KD69.85 million, compared to 149 transactions worth KD156.3 million in the previous week — a qualitative decrease of 55.3 percent and a quantitative decrease of 8.7 percent.
The newspaper obtained a copy of the weekly report from the Real Estate Registration and Documentation Departments at the Ministry of Justice, indicating that the private sector accounted for 83.2 percent of the total number of transactions, with 114 transactions valued at KD48.7 million.
This marks a significant decrease in transaction value of 53.7 percent (KD56.6 million) compared to 113 transactions worth KD105.3 million in the previous week.
Investment properties witnessed a significant decline as well, with 19 transactions totaling KD15.2 million or 48.6 percent decrease in value (KD14.4 million) and 36.6 percent decrease in the number of transactions (11 transactions).
This indicates that investors are awaiting stability in the real estate market, following the implementation of the new real estate legislation.
Commercial properties also experienced a downward trend, with only two transactions totaling KD5.3 million, compared to five transactions totaling KD20.1 million in the previous week.
This entails 60 percent decrease in the number of transactions (three transactions) and 73.6 percent decrease in value (KD14.8 million). The coastal strip sector recorded only one transaction during the week, valued at KD650,000, while other sectors such as warehouses, crafts, shops, showrooms and banks remained unchanged.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Lazura Developments has launched Lazura New Cairo, the first real estate project to enter Egypt’s market in 2026, with investments exceeding EGP 8bn. The development reflects confidence in the sector’s growth and will offer integrated residential units, modern planning, and flexible payment plans in a strategic New Cairo location.
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Lazura Developments has announced the launch of its latest real estate project, Lazura New Cairo, in New Cairo, marking the first project to be officially introduced to Egypt’s real estate market at the start of 2026, with total investments exceeding EGP 8bn.
Ahmed Abdel Hakim, Board Member at Lazura Developments, said the launch represents a key milestone in the company’s more than 20-year track record and reflects its confidence in the resilience and growth prospects of Egypt’s real estate sector. He added that the timing of the launch, coinciding with the beginning of 2026, sends positive signals for the sector’s outlook.
Abdel Hakim noted that Lazura New Cairo embodies the company’s commitment to delivering fully integrated real estate solutions that cater to both homeowners and investors, while aligning with the state’s vision for sustainable urban development. The project will comprise a diverse range of residential units, supported by integrated services and modern urban planning concepts.
He also highlighted the project’s strategic location in New Cairo, with close proximity to major road networks and key services, giving it a strong competitive advantage. The development is expected to generate new job opportunities, stimulate economic activity, and enhance real estate value in the surrounding area.
In the same context, Ramadan El-Seddik, Board Member at Lazura Developments, said the project reflects a clear strategic vision built on long-term planning and a deep understanding of market shifts and future demand, particularly as it is the first project to be launched at the start of 2026.
El-Seddik added that Lazura New Cairo has been designed to serve as a model for integrating architectural quality, sustainability, and operational efficiency, ensuring long-term investment value and reinforcing customer confidence.
Meanwhile, Ahmed Fouad, CEO of Lazura Developments, said the company has established a detailed execution plan to ensure adherence to construction timelines and the application of the highest quality standards, supported by the latest project management and implementation technologies.
Fouad added that the project is based on comprehensive market studies and will offer flexible payment plans alongside fully integrated services to meet evolving market needs.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Palace Group has announced the launch of AYA, a boutique residential development in Jumeirah Garden City, redefining modern, mindful living in the heart of Dubai. Designed by John McAslan + Partners, AYA offers just 70 refined residences shaped by intentional luxury, calm architecture, and holistic wellbeing. With thoughtfully curated amenities, serene open spaces, and seamless access to DIFC and Downtown Dubai, AYA sets a new benchmark for human-centered, design-led living.
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Palace Group, a pioneering force in the UAE’s luxury real estate sector, announces the launch of AYA, an exclusive new residential development in Jumeirah Garden City. Offering a contemporary, design-driven sanctuary in the heart of Dubai, AYA responds to a growing demand for residences that pair intentional luxury with balance, convenience and purposeful living.
Designed by award-winning architects John McAslan + Partners and guided by the philosophy of “less to show, more to live,” AYA by Palace Group brings together refined architecture and thoughtful spatial planning to create homes rooted in quiet, sophisticated authenticity. With just 70 one- to two-bedroom residences across 12 elegantly designed floors, AYA offers an intimate living experience centered around open-air terraces and calm landscaped pockets of green. Every detail supports holistic wellbeing, shaping a lifestyle without compromise where exquisite architecture becomes a vessel for modern, mindful living.
This commitment to intentional design carries through every residence. Natural materials, organic curves and generous light create intuitive, effortless living spaces, that offer balance and acoustic comfort. Open-plan layouts shift seamlessly from private retreat to social gathering, and extended balconies provide quiet moments of privacy, maintaining a continuous dialogue between inner calm and the world outside.
AYA sits at the heart of Jumeirah Garden City, one of Dubai’s most desirable emerging districts, shaped by a masterplan of mid-rise buildings, landscaped corridors and abundant open space. This future-focused walkable community offers the convenience of central living with the calm of a private sanctuary. With immediate access to the city’s key business and leisure hubs and just moments from DIFC and Dubai Downtown, it positions early buyers advantageously within Dubai’s evolving residential landscape.
“AYA is a boutique residence envisioned for a mindful, human-centered lifestyle, where quality and long-term wellbeing shape every detail,” said Wissam Damaa, Founder and Owner of Palace Group, on announcement of the exclusive residences. “With our proven track record in high-quality developments, AYA reflects our commitment to create distinctive living spaces in prime locations that go beyond conventional ultra-luxury. AYA is designed to stand out, deliver long-term value and offer an elevated living experience. We take pride in crafting homes people genuinely love, enriching the neighborhoods they belong to and setting a new benchmark for modern luxury living in Dubai.”
Reflecting its commitment to elevated living, AYA’s amenities are designed to enrich daily life with intention and ease. Effortless arrival begins at the elegant reception that flows into a unique art gallery, while exclusive retail boutiques add moments of discovery. Wellness and social connection sit at the heart of the experience, expressed on the rooftop through a serene pool, a state-of-the-art gym, a calming spa, and an inviting lounge designed for meaningful connection against panoramic city views. Outdoor spaces balance privacy and community, from an elegant al fresco dining terrace to lush gardens shaped by organic curves and soft planting. Each amenity supports both solitude and togetherness, creating a living environment where residents can feel centered, connected, and completely at home.
More than residences, AYA offers space that adapts to life’s changing rhythms, creating the foundation for solitude and longevity. As a boutique community shaped with enduring consideration, AYA delivers an exclusive living experience defined by sophistication and an instinctive sense of belonging. AYA is where you come home to who you are.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Emirates REIT posted a strong 9M 2025 performance, with property income up 22% to USD 60m and occupancy rising to 94%. Finance-to-Value was reduced to 20% and net finance costs fell 57% to USD 17m, supporting FFO of USD 14m. Revaluation gains of USD 171m lifted total assets to USD 1.22bn, with NAV reaching a record USD 886m.
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FINANCIAL HIGHLIGHTS
⦁ Total property income for the three quarters increased by 22% year-on-year on a like-for-like basis, reaching USD 60m.
⦁ Occupancy increased to 94% (Q3 2024: 92%).
⦁ Finance to Value (LTV) has been reduced by 16% to a stable 20% (Q3 2024: 36%).
⦁ Net Finance costs decreased by 57% to USD 17m (Q3 2024: USD 40m).
⦁ Fund From Operations (FFO) reached USD 14m (Q3 2024: USD -0.5m, inclusive of divested investment properties in FY 2024)
⦁ Revaluation gains of USD 171m bringing total assets value to USD 1.22b, higher than the USD 1.17b in Q3 2024, despite the sale of properties in 2024.
⦁ Net Asset Value reached a historic high with an increase of 37% year-on-year to USD 886m or USD 2.78 per share from USD 648m (USD2.03 per share) in Q3 2024.
OPERATIONS
Equitativa’s asset management team continued to deliver steady operating performance across the Emirates REIT portfolio, with occupancy increasing to 94% as at 30 September 2025. The improvement reflects sustained tenant demand across the portfolio, and the continued focus on proactive asset and lease management.
The net property income closed at USD 52m, remaining broadly stable year-on-year, despite the disposal of investment properties in 2024, and underlining the resilience of the portfolio’s income generation.
FINANCE
Emirates REIT maintained its conservative capital structure during the period, with the Finance-to-Value reduced to 20%, compared to 36% a year earlier. This reduction reflects proactive deleveraging and disciplined balance sheet management.
Combined with refinancing initiatives and a reduced debt profile, net finance costs decreased by 57% year-on-year to USD 17m, supporting the improvement in Funds From Operations to USD 14m for the period.
Revaluation gains of USD 171m were recorded during the period.
Commenting on Emirates REIT’s performance, Thierry Delvaux, CEO of Equitativa Dubai, said: “Emirates REIT’s continued strong performance underscores the resilience of our portfolio and the disciplined execution of our strategy. We have delivered higher property income while materially reducing finance costs, with Net Asset Value reaching a record USD 886 million. At the same time, LTV has been reduced to 20% and net finance costs lowered by 57% to USD 17 million, strengthening the REIT’s balance sheet and positioning us well for sustainable growth and attractive returns for our shareholders.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Abu Dhabi’s Modon Holding has formed a joint venture with Related Companies and Panepinto Properties to develop Harborside 4, a 54-storey residential tower in Jersey City, with construction set to begin in 2026.
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Abu Dhabi’s Modon Holding PSC has formed a new joint venture with US developer Related Companies and Jersey City firm Panepinto Properties to develop Harborside 4, a 54-storey residential tower in downtown Jersey City, New Jersey.
Modon will hold a majority equity stake in the JV, which the company said was part of its strategy to expand its global portfolio and enhance its long-term recurring income.
Construction is set to begin in Q1 2026, with completion targeted in Q1 2029.
Financial details of the project have not been disclosed.
The JV will jointly oversee the development, with Related leading development and construction management, leasing and operations.
A consortium of banks led by JP Morgan will provide construction financing for the development scheme overlooking the Manhattan skyline.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Alexandre de Betak and his wife are focusing on their most personal project yet.
Dubai’s luxury property market is entering a new phase. Branded residences are set to grow 80% to nearly 250 projects by 2030, the fastest expansion globally, according to VVS Estate. With the highest concentration worldwide and the strongest growth outlook, Dubai is moving beyond branded residences toward a new era of branded living.
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Dubai is entering a decisive new phase in its luxury property cycle, with branded residences expanding at a rate unmatched anywhere in the world.
The city’s branded-residence pipeline is set to grow by 80%, reaching nearly 250 projects by 2030, according to fresh market data from Dubai-based real estate consultancy VVS Estate.
According to Savills’ Branded Residences 2024/25 Report, the global sector has recorded more than 180% growth over the past decade, with over 700 completed schemes and another 790 in the pipeline.
The Savills report confirms nearly 140 branded-residence projects already active in Dubai, the highest concentration worldwide. Meanwhile, the EMEA region has emerged as a global hub for branded residences, accounting for nearly 30% of total supply. Within this landscape, the Middle East stands out, representing around 12% of global inventory and boasting the strongest growth outlook worldwide, with supply projected to expand by approximately 120% by 2030.
Valentina Rusu, Founder of VVS Estate said: “Cross referencing these findings with Property Finder’s 2,300+ off-plan developments across the UAE further indicates that Dubai’s branded residences are projected to increase by 80%, potentially reaching 250 projects by 2030.”
The next stage of Dubai’s branded-residence evolution is being driven by private-access launches and early intelligence shared only with top-tier brokerages. One of the most anticipated forthcoming developments, Palace Hillside in Dubai Hills Estate, has been quietly previewed to a select circle of industry leaders prior to public announcement. This trend reflects a broader market shift, which is that luxury buyers increasingly rely on agencies with privileged access, transforming traditional brokerage into strategic advisory.
Property Finder data highlights several significant branded schemes with confirmed delivery timelines. These include the Address Residences The Bay (2026), the St. Regis Residences Downtown (2026), the Vida Residences Dubai Hills (2027), and the Palace Residences Dubai Hills (2028), as well as the Six Senses Dubai Marina (2028) and the Address Residences Dubai Hills (2029).
Each project publicly shares construction progress and payment structures, reinforcing Dubai’s reputation for market transparency and investor confidence.
The next boom in Dubai property extends beyond residences alone. Projects such as Lumena Alta by Omniyat, which is a 380-metre tower combining a five-star sky hotel, wellness components, and commercial space, signal the rise of integrated lifestyle ecosystems. This progression marks Dubai’s shift from ‘branded residences’ to ‘branded life’, where hospitality, living, wellness, and workspace merge into cohesive premium districts.
“Branded residences go beyond luxury and sales; they represent value. Buyers are not just interested in purchasing a home, but investing in a lifestyle. The brand embodies a unique vision that leaves a lasting impact,” Rusu concluded. Her perspective captures the sentiment driving new investor behavior across the region and the desire for long-term assurance, strong brand stewardship, and lifestyle-driven returns.
With almost 250 branded and hybrid projects projected by 2030, and the potential to approach 400 schemes by 2035, Dubai is poised to remain the world’s most influential branded-living market. Its future pipeline is expected to strengthen high-end inbound investment, deepen international demand, and continue redefining how luxury real estate is conceived and delivered across the MENA region.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Sydney’s prestige market is looking up, here’s three of the best on the market right now.
Dubai is no longer a stopover — it’s home. According to betterhomes’ Future Living Report 2025, residents now stay an average of 10.5 years, reflecting a clear shift toward long-term living, stability, and confidence in the city’s future.
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Dubai’s shift from a temporary base to a long-term home is becoming increasingly clear. According to betterhomes’ Future Living Report 2025, the average length of stay across the city has risen to 10.5 years, up from 7.5 years in 2024, underscoring a clear shift in how residents view life in Dubai.
This increase reflects a growing sense of permanence across both tenants and homeowners, as more people commit to building their lives in the city for the long term. In 2024, tenants reported an average residency of 6.7 years. By 2025, that figure has climbed significantly to 9.9 years. Looking ahead, tenants now expect to remain in Dubai for an average of 10.7 years, compared to just 7 years the previous year. Nearly 60% of residents now plan to stay in the city for more than a decade, signaling a broader shift toward long-term living, stability, and confidence in Dubai’s future.
Commenting on these findings, Louis Harding, CEO of betterhomes, said, “With 59% of tenants committing to Dubai for the long term, it’s evident that people are planning their lives here with far greater confidence and clarity than we’ve seen before. This shift reflects Dubai’s continued appeal as a stable, livable city for both families and professionals.”
From Short-Term Plans to Long-Term Commitment
The rise in both actual and expected length of stay points to a deeper sense of belonging taking hold. Tenants are planning further ahead, setting roots, and aligning their lives around the city with greater certainty than in previous years.
Rupert Simmonds, Director of Leasing at betterhomes, added, “The growth in tenant residency is one of the clearest indicators of Dubai’s evolution. People are choosing to stay longer, not out of necessity, but because the city supports long-term living, stability, and progression.”
Together, the findings underline a clear narrative: Dubai is no longer seen as a temporary chapter for tenants, but as a long-term destination where people are choosing to settle, plan, and grow.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Nabni Developments has broken ground on Nabni Avenue 7 in Al Furjan. Set for handover in August 2027, the 12-storey project offers 166 premium residences and is already 65% sold, reinforcing Nabni’s commitment to high-quality, lifestyle-focused urban living.
2 minNabni Developments has officially begun construction on Nabni Avenue 7, its newest premium residential development located in Dubai’s Al Furjan district, one of the city’s fastest-growing communities.
The latest release in Nabni’s Avenue-branded series of residences – and its flagship, is designed as a showcase for elevated urban living while presenting a contemporary, sophisticated aesthetic with discreet Emirati design accents. It joins the developer’s Avenue 1–6 buildings and brings total investment in Al Furjan to AED 800 million.
Due for handover in August 2027, the 12-storey mid-rise building (ground + podium + 10) offers a total of 166 one, two and three-bedroom units ranging in size from 950 to 2,050 square feet – the largest in the area.
Grounded in minimalist Art Deco design with distinctive architectural elements drawn from traditional UAE homes, the light-filled interior layouts feature high-quality Italian fixtures and fittings, and premium European kitchen appliances. Smart home technology is integrated across the luxury residential experience, and a range of lifestyle-driven amenities tailored to young professionals and families are on offer including separate adult and kids’ swimming pools, a Technogym-equipped workout space, a resident’s lounge, ghaf tree garden, kids’ play area, jogging track, and barbecue area.
Commenting on the announcement, Abdulrahman Abdulla Alhelo Alsuwaidi, Co-founder and Chairman, Nabni Developments, said: “Following the sold-out success of our first six Avenue-branded residences, and 65% of Nabni Avenue 7 already sold out, we are continuing with a proven residential model that has consistently attracted quality-driven couples and families to both the Nabni reputation and the appeal of the Al Furjan community lifestyle.
“We remain focused on delivering high-quality living spaces that meet the high expectations of both investors and end users looking for standout projects that deliver on the off-plan promise. Our approach is backed by two decades of local market experience and a solid commitment to quality across construction, fit-out, and functionality – all aligned with international standards while honoring local design influences.”
Nabni Developments follows a considered development approach that balances refined luxury with commercial viability supported by direct global sourcing and smart cost management to ensure a consistently quality-centric product. As of December 2025, the company has delivered five buildings generating more than AED 1.2 billion in sales, with three further buildings in development in Al Furjan.
This new milestone for Nabni Avenue 7 follows the May 2025 launch of the developer’s Waldorf Astoria Residences Dubai Business Bay, the crown in its growing portfolio – and Waldorf Astoria’s first standalone residences outside of the US.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Self-tracking has moved beyond professional athletes and data geeks.
