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Dubai luxury home sales mark 19 percent increase


Dubai’s luxury home market sees a 19 percent increase in sales, with Palm Jumeirah leading in both sales volume and total value, while Dubai Hills Estate emerges as a rising hotspot for luxury home buyers…reports Asian Lite News

According to the latest analysis from global property consultant Knight Frank, one hundred and five homes priced in excess of US$10 million were sold in Dubai during the first three months of the year. This marks a 19 percent increase compared to Q1 2023.

Faisal Durrani, Partner – Head of Research, MENA, explained, “The level of deal activity in Dubai continues to strengthen, particularly at the top end of the market, where the near constant stream of international high-net-worth-individuals vying for the city’s most expensive homes persists.

“The laser-like focus of the global wealthy on Dubai is best reflected in the rapid deterioration in the volume of $10 million+ homes for sale, which has fallen by 59 percent across the city over the last 12 months to just 864 homes.”

The total value of luxury homes sold during Q1 stands at $1.73 billion, up six percent from Q1 2023. This builds on Dubai’s emergence as the world’s busiest $10 million+ homes market.

Knight Frank says that last year, Dubai recorded 431 home sales above $10 million, nearly 80 percent higher than the next nearest contender—London (240). New York (211) rounded off the world’s top three most active luxury home markets in 2023.

Palm Jumeirah registered deals worth $628 million, and dominated the luxury homes market during Q1, accounting for 36.3 percent of sales by total value. Jumeirah Bay Island (11.1 percent) and Dubai Hills Estate (seven percent) followed in second and third place, respectively.

While Palm Jumeirah (39) also led the pack in terms of the total number of luxury homes sold, Palm Jebel Ali (ten) and Business Bay (seven) registered more high-end home sales than Jumeirah Bay Island or Dubai Hills Estate.

According to Knight Frank, other markets, away from the headline-grabbing Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills, are fast rising in prominence among luxury home buyers, with Dubai Hills Estate, for instance, standing out as a market to watch.
Will McKintosh, Regional Partner and Head of Prime Residential, MENA, said, “Dubai Hills Estate has quietly for some time been rising up the ranks as not only one of Dubai’s most sought-after markets for domestic buyers, but now luxury home buyers are increasingly active here too.

“The relative proximity to both Downtown and New Dubai, combined with access to an international school, excellent neighbourhood facilities and amenities, and, of course, its abundance of green space, is quickly making Dubai Hills Estate one of Dubai’s most desirable neighbourhoods. Prices have unsurprisingly responded to the growing demand to live here and have risen by almost 11 percent in the last 12 months, while the number of homes available for sale has fallen by 75 percent to just over 1,000 units this past March.”
Knight Frank has previously found in its Destination Dubai 2023 report that access to parks and green space ranks as the most important consideration amongst global HNWI when considering an investment in the emirate.

According to Knight Frank, Dubai’s prime residential market, which includes Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills, has also experienced a surge in performance.

Durrani concluded, “After growing by 16.3 percent in 2023, following an extraordinary 44.4 percent increase during 2022, Dubai’s prime residential market has grown by 26.3 percent over the last 12 months, easily making it one of, if not the fastest growing prime residential market globally. While these startling growth rates are phenomenal, it does not take away from the fact that Dubai’s luxury homes market still remains one of the most affordable in the world.

“Indeed, $1 million secures some 980 square feet of prime residential space in Dubai, compared to just 366 square feet in New York, 355 square feet in London, or 172 square feet in Monaco.”

ALSO READ : Abu Dhabi Real Estate Market Flourishes in Q1 2024

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Abu Dhabi Business UAE News

Abu Dhabi Real Estate Market Flourishes in Q1 2024

representative image

In the first quarter of 2024, Abu Dhabi’s real estate market experienced significant activity, totaling AED15.9 billion in transactions with 5,127 sales and mortgage deals. Data from the DARI platform of the Department of Municipalities and Transport (DMT) highlighted 2,919 sales transactions, totaling over AED9.6 billion, with a mix of ready-made and off-plan units…reports Asian Lite News

During the first quarter of 2024, the Emirate of Abu Dhabi saw a robust real estate market, with transactions totaling AED15.9 billion. This figure encompasses 5,127 sales and mortgage transactions involving a variety of property types, indicating significant activity and investment within the sector.

According to data from the DARI platform of the Department of Municipalities and Transport (DMT) in Abu Dhabi, the emirate logged 2,919 sales and purchases transactions in Q1 2024 totalling over AED9.6 billion. This includes 1,167 ready-made real estate units and 1,752 off-plan units.

DARI data showed that the Emirate of Abu Dhabi recorded about 2,208 mortgage deals during Q1, with a total value of AED6.3 billion.
Meanwhile, the top three real estate transactions logged in Abu Dhabi during the past week, with Al Saadiyat Island and Yas Island topping the list of the largest transactions for Aldar Properties projects. The total value of transactions on Yas Island amounted to AED23.5 million, while the one on Al Saadiyat Island totalled AED14.3 million.

ALSO READ : Real Estate Awaits Budget Boost

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Business Tech Lite Technology

Real Estate Awaits Budget Boost

stock market bull and bear. (Infographics : Pinaki Paul)

Pandemic Threat Looms, Income Drop May Dampen Demand, Impacting Affordable Segment & Tier II/III Real Estate….reports Asian Lite News

Following the robust recovery observed in the real estate sector in 2023, the industry, while still contending with challenges like elevated input costs and increasing interest rates, is eagerly awaiting the upcoming budget presentation by Finance Minister Nirmala Sitharaman.

Despite the prevailing optimistic sentiments, it is crucial to acknowledge specific challenges. The lingering threat of the pandemic persists, and a decline in income could potentially affect demand, especially in the price-sensitive affordable segment and real estate development in tier II and III cities.

Vidush Arya, Head – Strategy, Orris Infrastructure Pvt. Ltd. said, “We anticipate favorable norms aimed at lowering interest rates and introducing tax rebates, encouraging sustained development and investment. Additionally, we hope for increased budget allocation towards new infrastructural developments. This dual strategic focus aligns with the positive momentum already witnessed, further elevating the quality of life for the home buyers and investors.”

Amish Bhutani, Managing Director of Group 108 said, “A pressing need exists to stimulate the affordable segment. Incentivizing purchases through measures like income tax rebates is suggested. Commercial realty, aligning with the government’s entrepreneurship promotion vision, requires policy-level support. Streamlining interest rates and approval processes, akin to a single-window clearance system, is crucial to meeting the escalating demand in the real estate sector.”

Ashwinder R Singh, CEO Residential, Bhartiya Urban said, “The real estate scene had a defining moment in 2023, setting the stage for what’s expected to be an even more dynamic 2024. With a strong economy and potential adjustments in home loan interest rates, the sector anticipates a surge in demand. To align with the government’s vision of housing for everyone, crucial issues need attention. The upcoming budget is crucial, with the top wish being industry status for real estate. Key measures like simplified clearances, tax breaks, and GST adjustments are essential. There’s a call for a thoughtful plan for affordable housing, tapping into untapped potential and unmet demand. As we await the budget, all eyes are on the government’s proactive steps, hoping for a roadmap that boosts growth and resilience in the real estate sector.”

Rajjath Goel, Managing Director of MRG Group said, “The much-awaited industry status award would launch the real estate market into a new phase of expansion. Simultaneously, we hope that the government takes action to resolve significant problems such as the unchecked increase in input costs, particularly for basic materials like steel and cement. A streamlined clearance system is a paramount need for enhancing the operational efficiency of the real estate sector. This reform would help us cut through various levels of bureaucracy, ensuring faster project approvals and benefiting developers and prospective homebuyers.”

Rajesh K Saraf, MD, Axiom Landbase said, “NITI Aayog’s forecast of the Indian real estate sector reaching a $1 trillion market size by 2030 highlights its long-term prospects. The sector looks to the government for intervention in reducing input costs, specifically for steel, cement, and fuel. We also request the government to consider reducing the GST rate on cement and initiatives to promote affordable housing through tax incentives.”

Ajendra Singh. Vice President Sales and Marketing, Spectrum Metro, “2023 not only brought the real estate sector into the limelight but also highlighted the role of commercial realty as a growth driver. We have huge expectations from the forthcoming budget. One of the foremost demands is the availability of GST input tax credits for commercial real estate. We would also like the government to consider conferring infrastructure status to the sector, allowing us easier access to credit and lower financing costs. Decreasing the input costs, such as steel and cement, revising depreciation rates for commercial buildings that align with current market realities, and tax incentives for investments in green buildings and sustainable development projects are other expectations from the forthcoming budget.”

According to Ankit Kansal, Managing Director AXON Developer, “2024 will be an eventful year for Indian real estate, as, after a steady run, the market is set for a further jump. Meanwhile, the government and regulatory bodies need to play a more constructive, accommodating, and facilitating role. It needs to take steps, to reduce regulatory roadblocks, fuel market demand, and support the developer fraternity with fiscal and non-fiscal impetus. Meanwhile, GOI also needs to give attention to green and sustainable real estate in India, as its time has come. There have been a few prudent steps in the past in the form of lower tax rates, fast-tracking approvals, and reduced stamp duties to support sustainable realty. However more needs to be done in terms of bigger tax breaks, supporting green financing, and allocating larger funds towards sustainable infrastructure developments.”

Prateek Mittal, Executive Director of Sushma Group, expressed, “We believe that the forthcoming budget will include income tax benefits for our sector, with high hopes and expectations for the return of the CLSS scheme. Anticipating a stronger real estate market, we foresee fiscal support that recognizes the industry’s critical role in economic recovery. Affordable housing remains the focal point for inclusive growth, and we eagerly await government initiatives that promote and incentivize such projects. By addressing diverse housing needs, these initiatives are expected to transform the real estate landscape, contributing significantly to the nation’s social and economic fabric.”

Tejpreet Singh Managing Director of Gillco Group said, “As real estate’s contribution to India’s GDP is expected to rise to 13% by 2025, the forthcoming budget is eagerly awaited for sectoral rejuvenation. Key expectations include redefining affordable housing criteria, increasing carpet area limits, and significantly boosting affordable housing.”

According to Mukul Bansal, Managing Director, Motiaz, “2023 marked a successful year for real estate, showcasing the positive impact of low prices, low interest rates, and abundant supply. In the upcoming budget, initiatives such as raising the deduction limit under section 80C, addressing the industry status demand, and implementing a single window clearance system are crucial for realizing the country’s housing aspirations.”

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Arab News Business

Markaz Unveils Report on GCC Real Estate Markets

Saudi Arabia’s economic growth momentum is expected to mildly slowdown in 2023 after the sharp uptick in 2022. Real GDP growth in 2023 is expected at 4.9% on YOY basis, compared to 8.7% YOY growth witnessed in 2022…reports Asian Lite News

Kuwait Financial Centre “Markaz” has released a set of reports focusing on the real estate sectors in Kuwait, Saudi Arabia, and the United Arab Emirates. These reports, titled “Markaz’s Real Estate Sector Outlook for H2-2023,” reflect Markaz’s commitment to keeping clients’ and those interested in real estate informed about the latest developments in these regional markets.

The periodic reports prepared by Marmore MENA Intelligence, the research arm of Markaz, cover macro and microeconomic activities based on Markaz’s Real Estate Macro Index Score, which is designed to help investors determine the current state of the real estate sector using a list of economic indicators. A quantitative score is assigned to each qualitative rating. The rating “Strong” requires a score of 5 and the rating “poor” requires a score of “1”. The average score is calculated according to economic and financial factors. The reports revealed that the UAE achieved the highest rating with a score of “3.8,” followed by Saudi Arabia at “3.55”, and Kuwait with a score of “3. “The reports also provide insights and data-based figures to measure the conditions of the sector in the main GCC markets during 2023.

H2 2023 outlook for Kuwait’s real estate market

Kuwait’s economic growth is expected to moderate in 2023 to 0.9% as compared to 8.2% in 2022 owing to lower output from the oil sector. Sluggish demand for oil due to an expected slowdown in global economic activity and supply cuts from OPEC+ are expected to lead to a slowdown in Kuwait’s real oil GDP growth. Nevertheless, non-Oil GDP is expected to grow by 3.4% in 2023 supported by stimulus measures from the government and a recovery in employment levels of expatriates.

Prices in the housing services component rose from 1.44% YOY at the end of 2022 to 3.23% YOY in June 2023, mainly driven by the housing rents which increased by 3.61% YOY in June 2023 up from 1.51% YOY at the end of 2022. Kuwait’s Istithmari sector (housing rental market) is seeing a milder recovery since September 2021 with the increase in the expat population post-COVID, the key driver for rental market growth.

Real estate sales in H1 2023 dropped to KD 1,564 million (USD 5.1 billion), compared to KD 1,979 million (USD 6.5 billion) in H1 2022. This decline was primarily due to reduced demand caused by high property prices in the residential sector and high interest rates acting as a deterrent to lending. Residential sales in H1 2023 dropped to KD 736 million (USD 2.4 billion), compared to KD 1.013 billion (USD 3.3 billion) in H1 2022. The number of transactions also fell by 38% YOY in H1 2023. The Istithmari segment also declined by 21% YOY reaching KD 458 million (USD 1.5 billion) in H1 2023, owing to a slower-than-anticipated recovery in the rental markets. Commercial sector sales declined by 46% YOY in H1 2023 to KD 210 million (USD 684 million) as compared to KD 387 million (USD 1.3 billion) sales in H1 2022, indicating a weaker demand from the corporate segment.

H2 2023 outlook for Saudi Arabia’s real estate market

Saudi Arabia’s economic growth momentum is expected to mildly slowdown in 2023 after the sharp uptick in 2022. Real GDP growth in 2023 is expected at 4.9% on YOY basis, compared to 8.7% YOY growth witnessed in 2022.

The value of real estate transactions in Saudi Arabia in Q4 2022 stood at SAR 51.0 billion (USD 13.6 billion) marking a decrease of 11.0% YOY. The KSA real estate price index rose by 1.0% YOY in Q1 2023, mainly driven by a 1.6% YOY increase in residential land prices. House prices remained constant in Q1 2023 compared to the same quarter of the previous year.

In Q1 2023, Villa prices increased in Dammam, Jeddah, and Riyadh. Apartment prices increased in Riyadh, but decreased in Jeddah, Dammam, and Khobar. The increase in villa prices was driven by rising demand from both Saudi nationals and expatriates, whereas the increase in apartment prices in Riyadh was driven by the limited supply of new apartments.

In Q1 2023, rents increased in both Grade A and Grade B offices sectors in Riyadh, Dammam, and Khobar. Occupancy rates also increased in all three cities driven by strong demand from both existing and new occupiers. The limited supply of occupiable stock also contributed to the increase in rents.

In Q1 2023, Industrial and Logistics rents increased in Riyadh, Khobar, and Dammam, while Jeddah has witnessed a decrease in rents. The increase in rents was driven by the growing demand for industrial and logistics space. The Saudi government’s development plans, which include the launch of four Special Economic Zones (SEZ), are expected to boost demand for industrial and logistics space.

H2 2023 outlook for UAE’s real estate market

The UAE economy is anticipated to witness steady growth in 2023 and register a real GDP growth of 3.5% YOY, as projected by IMF. The growth would be underpinned by stable oil prices, expanding non-oil sector, government regulations promoting flow of FDI and an expected inflow of more expats into the country that will promote non-oil growth.

The real estate sector in the UAE witnessed robust growth in 2022 and Q1 2023. Property prices in the UAE continued to rise in Q1 2023 despite fears of a global economic slowdown. Average residential prices in Dubai surged by 12.8% from December 2022 to March 2023 while Abu Dhabi’s average apartment prices grew by 1.4% during the period. In the year to Q1 2023, average rents for Prime, Grade B, and Grade C offices in Dubai increased by 20.2%, 18.7%, and 28.7% respectively. In Abu Dhabi, average Prime, and Grade B segment rents surged by 19.1% and 10.7% respectively over the same period.

Dubai’s real estate market witnessed strong growth in Q1 2023, as the value of transactions recorded an 80% increase, up from AED 87 billion in Q1 2022 to AED 157 billion in Q1 2023. Abu Dhabi’s real estate sector recorded AED 16.2 billion (USD 4.4. billion) worth transactions in Q1 2023 compared to sales transactions worth AED 4.4 billion (USD 1.2 billion) for the same period last year, an increase of 268% YOY increase in terms of value. The surge was supported by the influx of high-net-worth individuals, and government efforts to diversify the sector away from oil.

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-Top News Business China

China’s property woes deepen with Evergrande’s bankruptcy

Chinese company Evergrande.(photo:twitter)

A sudden shift in policy by China’s leaders two years ago has left the country’s property developers scrambling for cash, compounding financial risks within the world’s second-largest economy.

The filing for bankruptcy by Evergrande, Chinese real estate giant signals the beginning of Beijing’s real estate crisis, CNN reported on Friday.

It serves as a cautionary tale about the “growth-at-all-costs” model that underpinned China’s spectacular growth over the past 30 years.

For decades, Evergrande, once one of China’s most successful real estate developers, gobbled up debt as China’s economy exploded. Demand for housing was so strong, homebuilders often pre-sold apartment units to buyers before construction was complete, CNN reported.

But a sudden shift in policy by China’s leaders two years ago has left the country’s property developers scrambling for cash, compounding financial risks within the world’s second-largest economy.

As per CNN, the story of Evergrande’s downfall began in 2021, when the central government moved to curb excessive borrowing to try to slow the rise in home prices, effectively cutting off a major source of funding for property developers.

Evergrande, which had 300 billion USD in liabilities, couldn’t shore up cash fast enough to make its debt payments.

It defaulted in December 2021, triggering a market panic. A wave of defaults followed, and China’s vast real estate market has yet to recover. The building was suspended on dozens of projects, leaving many “pre-sale” buyers left with no new home and a hefty debt burden, according to CNN.

The steps that will be taken by Beijing to restructure billions of dollars in offshore debts have massive implications for China’s financial system.

Earlier on Thursday, Evergrande filed for Chapter 15 bankruptcy, which is a way for foreign companies to use US bankruptcy law to restructure debt. The process will take time, as Evergrande has roughly 19 billion USD in offshore debts.

Evergrande’s liquidity crisis was just the beginning of the pain. Other large builders in China have since defaulted as they struggle to shore up cash and demand for housing has fallen, CNN reported.

Notably, investors around the world are watching the development cautiously as Country Garden, which employs some 3,00,000 people, missed two payments on its multibillion-dollar debt and said it was considering “various debt management measures.”

The cash-strapped developer’s debt is now seen as a “very high risk” asset, according to Moody’s, which downgraded its rating on Country Garden last week, CNN reported.

Country Garden has until early September to make the payments it missed.

It’s hard to overstate the importance of the property market in China. The industry accounts for as much as 30 per cent of the country’s economic activity, and more than two-thirds of household wealth is tied up in real estate.

Xi Jinping delivers a speech at a ceremony marking the 100th anniversary of the founding of the CPC in Beijing, July 1, 2021. (Xinhua/Ju Peng/IANS)

But nearly three years of “Zero Covid” restrictions sapped China’s economic growth, and consumers have been reluctant to buy new homes in the face of higher unemployment and falling property values, as per CNN.

Notably, China’s economic engines have been sputtering after a brief surge in activity earlier this year.

Consumer prices last month fell for the first time in more than two years; youth unemployment has been rising so fast, Chinese authorities simply didn’t release the July data. Retail sales, export demand and factory production are all down as well, CNN reported.

While Beijing has made some efforts to help jumpstart demand for housing and free up cash for developers, the days of big, state-funded bailouts for bloated industries appear to be over. It also seems unlikely that China will bail these companies out.

“We must maintain historic patience and insist on making steady, step-by-step progress,” CNN quoted President Xi Jinping as saying recently. (ANI)

ALSO READ: China conducts military drills around Taiwan

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Arab News Asia News World News

Danube Unveils Elitz 3

Danube Properties launch Dh800 million Elitz 3 project in Jumeirah Village Circle, offering the best value for home buyers. Danube Properties sold out Elitz-2 within a month of its launch; guarantees 6% return on investment. The launch of the Elitz 3 projects comes after Dubai’s real estate market has seen an unprecedented surge in the number of real estate transactions reaching 60,440 worth Dh 177.3 billion being recorded during the first half of the year

Dubai-headquartered Danube Properties announces the launch of Elitz 3 at the Jumeirah Village Circle (JVC), with a development value exceeding Dh 800 million at a star-studded event at Danube Sports World.

The project will be in the same area as Elitz and Elitz 2 towers – which are currently under construction at the JVC – and help meet the growing demand for quality homes. When completed in the fourth quarter of 2026, the twin-tower project Elitz 3 will rise 40 and 46 floors high and deliver 750 residential units including studio apartments, 1-bedroom, 2-bedroom, and 3-bedroom apartments, and a few retail stores.

Like most other Danube projects, homes at Elitz 3 also come with more than 40 community, health, and lifestyle amenities including a health club, swimming pools, sports arena, tennis court, barbecue area, and jogging track, among other facilities.

Elitz 3 is Danube Properties’ 24th residential project and the 9th project to be launched in the last 18 months, which translates to one project launch every two months – making it also the busiest and the fastest-growing private real estate developer in the UAE.

With Elitz 3, Danube Properties’ project portfolio stands at 11,529 units spread across 24 projects with a combined development value exceeding Dh10 billion so far.

“Dubai’s real estate market continues to defy global economic slowdown due to its dynamism and attractiveness and we see sustained growth soon, which reinforces our firm belief in the market. This is what has encouraged us to launch Elitz 3 within just a month after launching Elitz 2 at the Jumeirah Village Circle (JVC),” Rizwan Sajan, Founder, and Chairman of Danube Group, said.

“The UAE’s leadership in handling the COVID-19 pandemic and managing the post-pandemic recovery has drawn the attention of the global investor community who have started to relocate their resources to the UAE, as evident in the growing number of tourists, businessmen, new business set up and purchase of both off-plan and ready-to-move-in apartments and villas.

“The launch of the Elitz 3 comes after Dubai’s real estate market has seen an unprecedented surge in the number of real estate transactions reaching 60,440 worth Dh 177.3 billion being recorded during the first half of the year. The value of real estate sales recorded in the first six months of the year exceeds the annual sales value recorded each year in Dubai from 2009 to 2021.

“Real estate is currently the biggest driver of Dubai’s economy that is attracting a large pool of domestic and foreign investment.”

Prices of residential units start from Dh 699,000 (US$190,305) for a studio apartment, making them an attractive proposition for home buyers and investors who could benefit from the continuous price appreciation as the real estate sector is witnessing an increase in demand. Danube Properties’ homes come with an attractive payment plan with a trend-setting 1 percent monthly payment plan, following the initial deposits – making home acquisition more affordable and attractive.

The homes are usually delivered around mid-way through the payment plan, which means the buyer can move into the apartment after paying 65 percent of the total value of the property. This helps homeowners extract additional value either by increasing savings on the rent or by paying the equated monthly installments (EMI) from the rental income.

Danube Properties maintains a policy of launching one project at a time, selling it out, and then appointing a contractor to build the project, before launching the next one. It has delivered 11 of them while the rest are currently under various stages of construction.

In addition to launching projects and building them, Danube Properties will also deliver three projects this year including Wavez, Jewelz, and Olivz. Most of the projects launched in 2022 and 2023 are ahead of the construction and delivery schedule.

“Elitz 3 comes with more than 40 lifestyle facilities that offer luxury and larger-than-life lifestyles to homeowners who will be pampered with the best of the best that is available in the market. With the increased number of lifestyle facilities and amenities, we are gradually expanding and upgrading the comfort level to our buyers who see an increasingly greater value in our properties,” Rizwan Sajan says.

“Our trend-setting 1 percent monthly payment scheme is helping more and more tenants to buy property and enjoy living in their own homes which has increased the number of freehold homeowners in the UAE.”

Elitz 2 homes will be smart and sustainable homes and will consume less energy – in line with the “Year of Sustainability” ahead of COP28.

Danube Properties offers homeowners a 10-year Golden Visa – especially those who qualify as per the investment criteria – subject to government approval. As a testament to the Dubai Land Department trust, the DLD also signed an agreement with Danube Properties to offer an Initial Sale Contract (Oqood) to property buyers almost instantly.

 Danube Properties last year launched and sold out five projects with 2,099 homes worth Dh2 billion. As one of the most successful developers in the UAE with the highest launch-to-delivery ratio, Danube Group has recently delivered Bayz, Elz, Glamz, Lawnz, Resortz, and Starz, and while it is preparing to deliver three more projects this year. All these projects have been greatly appreciated by those who have bought units in them.

Danube Properties, part of the Danube Group, made its foray into the real estate market in June 2014, by launching the Dh500 million 171 townhouses at Al Furjan. Since then, it continued to expand its development portfolio by launching Glitz Residence I, II, III, Starz, Glamz, Miraclz, Resortz, Bayz, Jewelz, Elz, Lawnz, Wavez, Olivz, Skyz, Pearlz, Gemz, Opalz, Petalz, Elitz I, Viewz, Fashion and Elitz II projects.

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Business

A new semi-annual sales record for Dubai real estate

Al Zarooni stated that Dubai has the best infrastructure in the world in all sectors, added to keenness to adopting the best technologies and constantly modernize the infrastructure…reports Asian Lite News

A new “W Capital” analysis showed persistent strength of demand within the Dubai real estate market, proved by exceptional performance recorded and the highest levels of real estate sales in the first half of 2023.That was reflected in 61,000 sales deals with total value topping Dhs179.34bn, which is the highest ever semi-annual numbers.

“The real estate sector continues to break records in terms of sales and transactions,” said Walid Al Zarooni, “W Capital “Real Estate Brokerage CEO.

“The first half of this year recorded the best semi-annual performance in history, benefiting from the supportive factors within the market and the continued economic momentum,” he added.

Al Zarooni explained that the growth rate in terms of sales value amounted to 57% on an annual basis during the first six months of 2023, compared to Dhs114.5bn in the previous year, and in terms of the number of deals by about 42%, compared to 42,971 deals last year.

 “During June 2023, the real estate market in Dubai maintains a continuous state of momentum started in 2021, with 10,405 real estate sales deals with total value of Dhs30.3bn, which is the highest number ever for the month of June, exceeding the historical number recorded in 2009 with a value of Dhs22.92bn,” he continued.

Al Zarooni said that despite the blessed Eid Al-Adha holiday, which lasts for four days, the value of real estate transactions during the current month will be the fourth highest  on monthly basis in , after the months of last March,  last May and  last November, with  values of Dhs34.1, 33.9 and 30.8bn, respectively.

Walid Al Zarooni said that Dubai provides a legislative environment that takes into account the rights of all parties, and maintains the discipline of citizens and foreigners alike. Besides the speed of litigation, which increases investor confidence and motivates them to permanent residence, in addition to applying best practices and legislation within the real estate market, which regulates real estate ownership, off-plan sales, or rentals.

Al Zarooni stated that Dubai has the best infrastructure in the world in all sectors, added to keenness to adopting the best technologies and constantly modernize the infrastructure. This boosts the development and growth of Dubai’s economy.

He revealed that the world comes to Dubai throughout the year, with economic and entertainment activities in mind, that impress everyone. This is one of the incentives to come and live, while applying the equation by providing good investment opportunities and achieving high returns on this investment, in addition to enjoying the continuous entertainment activities and attractive tourist attractions within Dubai.

The CEO expected all factors would be pushing record sales, and it might exceed the barrier of Dhs300bn for the first time in 2023, with the support of the unprecedented demand from foreigners, businessmen and wealthy people of various nationalities to own a property in Dubai.

Walid Al Zarooni suggested that the high levels of demand in the residential real estate market will continue to be high on the part of real estate buyers and investors, especially foreigners, thanks to the stimulating measures taken by the emirate and also with the launch of new mega projects, which will attract more investors.

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Business

India emerges as preferred real estate hub for GCC

Turkish Real Estates Resurrect

The Indian real estate market is expected to grow at a healthy pace in the future. As the population grows and incomes rise, demand for real estate is expected to increase…reports Asian Lite News

India is fast becoming the preferred real estate investment destination for GCC-based NRIs. This is largely due to the country’s booming economy, growing population, and relaxed foreign investment policies. Additionally, the Indian government has implemented various initiatives to make it easier for NRIs to purchase property in India. These include providing tax breaks and offering special financing options for real estate purchases. Furthermore, the Indian real estate market offers attractive returns and potential for capital appreciation, making it a lucrative investment opportunity for GCC-based NRIs. With the Indian real estate sector showing immense potential, GCC-based NRIs are increasingly looking to India for their real estate investments.

WHAT IS DRIVING GCC-BASED NRIS TO INVEST IN INDIAN REAL ESTATE?

The Indian real estate market has seen tremendous growth in the last few years, due in part to strong economic growth, rising disposable income levels, and a growing population. Also, the real estate market in India is highly attractive, with high returns and a long-term investment perspective. Moreover, the Indian real estate sector is experiencing a healthy level of foreign interest, which creates a great deal of interest among GCC-based NRIs. Though the demand for real estate in the country is relatively high, the supply of real estate is also increasing at a healthy pace, pushing up prices. This is expected to further increase the appeal of real estate as an investment option for GCC-based NRIs.

What are the benefits of investing in Indian real estate for GCC-based NRIs?

Real estate investments in India are highly lucrative. Various studies have found that, over a period of 10 years, an average real estate investment in India could generate a return of 15% per annum. Moreover, the investment can yield a positive profit even after 15 years, making it a great long-term investment option. Real estate investments in India can also offer significant tax benefits.

Sharing insights Aakash Ohri, Group Executive Director and Chief Business Officer, DLF Ltd, one India’s largest listed real estate developer said shared “In the past two years, we’ve witnessed a rise in the number of NRIs looking to own a home back in India and the pent-up demand has begun to come to the fore. With the appreciation in the property prices, they have historically received and will continue to expect a handsome return on their investment. Due to a strong emotional bond, many Indians living in GCC countries are investing in their homeland as an option to come back and settle down in the future, but most of them are also buying homes purely as an investment option. Factors like a simplified taxation regime and indexation benefit for properties held in India encourage NRI buyers to park their surplus money in India.”

The Indian government’s initiatives to make it easier for NRIs to purchase property in India

The Indian government has implemented various initiatives to make it easier for NRIs to purchase property in India. For instance, the government has made it easier for NRIs to get a real estate investment license, introduce a negative equity facility for real estate purchases, and provide interest-free loans for self-financing real estate transactions. These initiatives have increased the ease of doing business in the real estate sector and made it more attractive for NRIs. Moreover, there are a number of real estate companies that provide services such as property financing, tax consultancy, etc., for NRIs and expatriates, making it easier for you to invest in Indian real estate.

The potential of the Indian real estate market

The Indian real estate market is expected to grow at a healthy pace in the future. As the population grows and incomes rise, demand for real estate is expected to increase. This will further increase the demand and raise the prices of real estate. Moreover, the Indian government is increasingly turning its focus to improving urban infrastructure, realising the importance of housing for urban development. This, coupled with favourable tax laws, is expected to positively influence the real estate market in India in the future.

The growing interest in real estate among GCC-based NRIs is attracting significant attention from the Indian real estate sector. With rising incomes, growing population, and favourable policies, the Indian real estate market is expected to grow rapidly in the future. This growth will make the real estate sector even more attractive for investors, resulting in sustained appreciation in prices. Real estate investments in India can be highly profitable and provide significant tax benefits for NRIs looking to invest abroad.

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Business UAE News

Real Estate group becomes #1 workplace for women in GCC

Metropolitan Group management and staff

Angelica Noceja, Metropolitan’s HR Manager said: “We have been aggressively recruiting since the beginning of the year and actively look for female talent as diversity is of the utmost importance to our group…reports Asian Lite News

Metropolitan Group, a leading real estate group in the UAE, was recognized as the best place to work for women in the GCC according to the ‘Best Workplaces for Women™ 2022 ranking. The top 30 Best Workplaces for Women in GCC recognises organisations across the region that are working hard to close the gender gap while sustaining high-performing cultures for their employees.

The Great Place to Work® Middle East surveyed thousands of female employees from across the region to determine the 2022 Best Workplaces for Women™.  Metropolitan’s recognition is based on the Great Place to Work®️ audit and confidential survey data assessing female employee experiences of trust, innovation, company values and leadership.

Ibrahim Mougharbel, Managing Director for the UAE, Qatar, Kuwait and Oman, Great Place to Work®️ Middle East commented: “We’re very excited that Metropolitan Group ranked first in our Great Place to Work®️ Best Workplaces for Women™ list. Female employees have shared that they are treated fairly regardless of their position. This fair treatment indicates that Metropolitan Group exerts outstanding efforts in creating a work environment that empowers women. It is remarkable to see companies recognising the value women add to any workplace. Providing purposeful work is essential, which resulted in female employees stating that they are proud to be working at Metropolitan Group.”

Mike Fleet, Metropolitan’s Performance & Development Director said: “We are delighted with this achievement as it’s not only great recognition for our overall culture but it is a fantastic endorsement for the work we have done to ensure that our female employees, who represent 60% of the Metropolitan family, can thrive in a positive and rewarding place to work. Right from the beginning, the company’s leadership has focused on creating a high-performance culture and inclusive environment; and today with 40% of our directors and 80% of our middle management being female, we are delighted to see that many of the initiatives we rolled out have had a significant positive impact on women in the workplace.”

Angelica Noceja, Metropolitan’s HR Manager said: “We have been aggressively recruiting since the beginning of the year and actively look for female talent as diversity is of the utmost importance to our group. We have female influence on our board and across many senior-level positions with 35 nationalities represented across the company. We work hard to recognise talent and performance in the company; in fact this year from external hiring to internal promotions we have eight women at Director or Head of Department level.”  

In March this year, Metropolitan became the first-ever real estate brokerage to make the Top 50 Best Workplaces™ in the UAE List and later in August, the company made it into the top 5 (medium category) of the Best Workplaces™ in the GCC.

The Metropolitan Group in the UAE includes two full-service real estate agencies: Metropolitan Premium Properties (Dubai) and Metropolitan Capital Real Estate LLC (Abu Dhabi). The group also has Metropolitan Consulting FZE, a supporting company that provides personal and business legal services in the UAE.

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Arab News Saudi Arabia

KSA records 21% growth in residential real estate transactions

The CBRE report said visitation to the workplace in Saudi Arabia remains above its pre-pandemic baseline and now sits 19.3 percent above the baseline…reports Asian Lite News

Saudi Arabia recorded SR36 billion ($9.58 billion) worth of transactions in the residential real estate sector in the second quarter of 2022, recording a 21.4 percent increase over the same period last year, the latest market report by the global real estate adviser CBRE revealed.

While the volumes of residential transactions fell by 19.9 percent to over 44,000 deals in the second quarter when compared to last year, the Kingdom saw the overall value of translations increase due to a spike in apartment prices. 

The average apartment prices, on a per square meter basis, across the Kingdom have increased by 6.2 percent in the year to the second quarter of 2022.

This was led by Saudi city Alkhobar which recorded a growth of 11.3 percent in apartment prices, followed by  Jeddah and Riyadh with a spike of 5 percent and 4.2 percent, respectively, in prices in the second quarter.

However, aside from Alkhobar, all major cities registered a sharp decline in the annual rate of price growth in the second quarter of 2022, compared to the quarter earlier, revealed CBRE’s Saudi Arabia Real Estate Market Review Q2 2022 report.

In line with the national trend, all the major cities saw a fall in the number of residential transactions in the year to the second quarter, with the Kingdom’s capital leading the chart with over a 33 percent fall compared to a year earlier. Jeddah and Dammam followed suit with a drop of 6.2 percent and 3.4 percent respectively.

While Saudi Arabia’s economy has gone from strength to strength recently, analysts at CBRE said the Kingdom’s real estate market performance remains “fragmented” on a city and asset class level.

“Given the scale of the change that the Kingdom is undergoing across all asset classes, this is to be expected,” said Taimur Khan, head of research – MENA at CBRE.

However, he said their long-term outlook on Saudi Arabia’s real estate sector remains “optimistic,” despite some of the short-run challenges.

The CBRE report said visitation to the workplace in Saudi Arabia remains above its pre-pandemic baseline and now sits 19.3 percent above the baseline.

But, the capital city Riyadh continues to remain at the center of commercial activities, where demand continues to significantly outstrip supply, it said.

Riyadh has had limited new supply over the years, resulting in average rental prices and occupancy levels staying on the higher side. According to the CBRE report, Riyadh saw occupancy levels rising over the last quarter by 0.7 percentage points to reach 98.1 percent on average in the second quarter of 2022.

“Constrained supply levels have also continued to support growth in rental rates, where in the year to the second quarter of 2022, average Grade A and Grade B rents increased by 3.9 percent and 4.2 percent respectively,” the CBRE said in the report.

In Jeddah, with the Grade A segment of the market being landlord-favored, it said average rents have increased by 2.4 percent in the 12 months to June 2022.

Amid a massive push to develop the country’s tourism and hospitality sectors, Saudi Arabia saw all the key performance indicators of hotels improving in the second quarter, with the average occupancy rate in the year to date to June 2022 increasing by 19 percentage points.

This helped hotels improve their average daily rates, which increased by 13.5 percent, resulting in their revenue per available room seeing massive growth of  72.8 percent over the same period last year, according to the CBRE report.

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