Residential unit deliveries already picking up, according to new report

Dubai’s residential property deliveries have picked up in recent months, with thousands of units already completed during the first three months of the year, according to new research.

From January to March 2024, the market saw the delivery of approximately 6,500 homes, which were mostly apartments, a report from real estate consultancy Land  Sterling noted.

By year-end, total deliveries will reach around 64,400 residential units, exceeding the previous year’s number of completed properties, the Q1 2024 Dubai Property Watch report noted.

During the first quarter of the year, apartments accounted for 75% of the project completions, while villas comprised 25%. The amount of residential unit deliveries in recent months reflects Dubai’s “continued appeal as a real estate investment hub”, the report noted.

“The first quarter of 2024 has been a period of robust activity for Dubai’s residential sector. The strong increase in new unit deliveries… underscores the market’s resilience and the sustained demand for high-quality residential properties,” noted Edward Sanders, Managing Director of Land Sterling.

Highest handovers

During the first quarter, the areas with the highest number of property handovers were Meydan One in Mohammed Bin Rashid (MBR) City, Jumeirah Village Circle (JVC) and Al Furjan.

It is estimated that approximately half of the upcoming supply will be turned over to buyers within the year, Land Sterling said.

The majority of future handovers are anticipated in MBR City, JVC, Damac Lagoons and Business Bay, with 70% of the future supply expected to be apartments and 30% villas.

Demand for properties also remained strong, with the first quarter of the year recording more than 35,300 sales transactions worth around AED 88.8 billion ($24.17 billion), up by 20.5% year-on-year in terms of volume and 24.1% in value.

Source: Zawya

Under the strategic alliance, Network will empower emaratech-owned noqodi’s existing payment channels

Fintech company noqodi has collaborated with Network International to expand digital payments offering that can cover various segments beyond just government and private sector services.

The partnership will enable the Dubai-based firm to provide micro, small, and medium enterprises (MSMEs) with access to additional digital payment solutions while driving shared goal of boosting the UAE’s cashless economy, according to a press release.

Under the strategic alliance, Network will empower emaratech-owned noqodi’s existing payment channels like e-commerce, point of sale (POS), and software point of sale (SoftPOS) to accept card payments.

It will further introduce support to new unbanked segments, including retail and commerce.

General Manager at noqodi, Zahi Kallab, said: “Together with Network, and leveraging noqodi’s unique value proposition, we are committed to supporting MSMEs and simplifying their business operations with accessible and innovative digital payment solutions.”

Kallab added: “This alliance reinforces our dedication to advancing digital payments in line with Dubai’s vision of becoming a fully cashless economy.”

The fintech company is currently integrated with different banks and payment options that come under one payment platform for government and selected private merchants. This includes direct debit, online banking, and cash through partner exchange houses, besides full automation of collections, reconciliation, settlement, and transaction-related services.

Group Managing Director – Acquiring at Network, Andrew Key, said: “Digital payments are becoming more commonplace in the UAE with businesses of all sizes now shifting toward cashless transactions. Given this, there is a growing need for easily accessible innovative digital payment solutions that help simplify business operations.”

Key concluded: “Our partnership further reaffirms our commitment to boosting digital payments in the region in line with Dubai’s bid to become a fully cashless economy.”

Recently, Network joined forces with SerVme, a reservation and guest customer relationship management (CRM) platform for restaurants and hospitality operators, to endorse food and beverage (F&B) merchants in the UAE.

Source: Zawya

Cities in the UAE are now among the fastest-growing wealth markets in the world due to their strong oil and gas industries, with millionaire populations in Dubai, Abu Dhabi and Sharjah jumping double digits to reach close to 100,000 this year, new data showed.

In the six months to June 30, the total number of high-net-worth individuals (HNWIs) with fortunes of at least $1 million in Dubai rose by 18% to 67,900, making the emirate on track to break into the world's top 20 wealthiest destinations by 2030, according to the latest Henley Global Citizens Report, which tracks private wealth migration trends worldwide.

In Abu Dhabi, the HNWI population jumped 16% to 23,800, while Sharjah's total number of wealthy residents went up by 20% to 3,700.

Overall, the combined HNWI population in the three cities surged to 95,400.

The report features data from global wealth intelligence firm New World Wealth. Overall, New York emerged as the wealthiest city on earth with 345,600 millionaires.

Second on the list is San Francisco Bay area, followed by London, Singapore, Los Angeles & Malibu, Chicago, Houston, Beijing and Shanghai in the top ten.

Strong oil and gas sectors

According to Andrew Amoils, Head of Research at New World Wealth, the millionaire population of Dubai is expected to break into the top 20 wealthiest cities by 2030.

"Cities with strong oil and gas industries are performing especially well this year, including the likes of Riyadh, Sharjah, Luanda, Abu Dhabi, Doha and Lagos," Amoils said.

"Others on the fastest-growing list include Lugano, a Swiss hotspot for affluent retirees, Bengaluru, the 'Silicon Valley of India' and Hangzhou, one of China's most scenic cities."

Residents with over $10 million wealth

Among Dubai's rich population, at least 3,170 are multi-millionaires with wealth of at least $10 million. The city is also home to 202 centi-millionaires with fortunes of at least $100 million, as well as 13 billionaires.

In Abu Dhabi, at least 1,120 are multi-millionaires, while 67 fall under the centi-millionaire segment. Three residents are billionaires. Sharjah accounts for 110 multi-millionaires and four centi-millionaires.

Source: Zawya

Dubai-based startup Stake is offering retail investors from across the globe the opportunity to buy fractions of rental property in UAE’s marquee city and earn regular income. The startup, founded in 2020, claims that because of Dubai’s real estate rules it has managed to attract investing users on the platform from more than 80 countries in the world.

The company, founded by Manar Mahmassani, Rami Tabbara and Ricardo Brizido in 2020, has raised $8 million in a pre-Series A round from investors like BY Ventures, MEVP and Vivium Holdings to expand its portfolio and launch in Saudi Arabia and Egypt. The company first raised a $4 million seed round last year.

“This round is a testament to what we are building at Stake and our mission to bring access and liquidity to the oldest, largest, and most sought-after asset class in the world. The proceeds will allow us to expand into Saudi Arabia and Egypt, continue attracting the best talent to the team, and cement Stake’s position as the category leader in the MENA region,” Mahmassani said in a written statement.

Tabbara told TechCrunch over a call that after being in the real estate business for more than 15 years, he realized a lot of people want to invest in the MENA region but can’t afford to put in large chunks of money without paying huge commissions to brokers and developers. So he wanted to accelerate the process of investing in real estate with Stake.

The firm says it lists premium properties on its platform that are already on rent. To acquire a property, Stake looks at factors like location, build quality, view and if it has tenants. Tabbara said if the property is not rented, the company uses its data to list properties that could be rented out quickly. Stake has paid over AED 1 million ($272,249) in rental income to investors, which is credited every month.

Stake currently manages more than 44 properties with a combined value of AED 56 million ($17.9 million). The company claims that it has achieved an average 17% monthly growth rate in both investors and assets under management (AUM).

“Our platform currently boasts 42,000 registered users and more than 2,100 active investors on the platform. While we have users from many countries on the site, folks from UAE, Saudi Arabia, Kuwait, the U.K. and India are our top five investor bases,” Tabbara said.

Users can quickly register with the platform and invest from as low as AED 500 ($136). Because of Dubai’s investment rules individual investors can only invest up to AED 183,500 ($50,000) per year. The proptech company also limits maximum ownership by a single investor in a property to 33% to evenly spread out gains.

The firm doesn’t rely on financing to acquire homes. All the money to purchase a property comes from the investors. While Dubai’s property rule allows for partial deeds, there’s a cap of four investors, so Stake creates a special purpose vehicle for each property to facilitate deed registration. All properties usually have an investment term of five periods, but a house’s value goes up 30% in the market, and the investors can vote to sell it.

Stake’s business model relies on various fees. When investors purchase a property, the company charges them 1.5% with an additional 0.5% charged annually for maintenance. Plus, there are 0.2% Know Your Customer (KYC) and Anti-money laundering fees up front and 0.1% annually from the second year of the term. The company also charges investors 2.5% as an exit fee when they sell their stake. What’s more, if the property is sold at a higher rate than its acquisition, Stake takes a 15% cut from the profit. The company is not profitable yet but has achieved 470% year-on-year growth in terms of revenue.

In the next 12 months, apart from launching its platform in Egypt and Saudi Arabia, the company also wants to build a second-day trading platform, where investors can sell their stake in a property to other investors. Stake is focusing on launching a way to let people invest in vacation properties that go on platforms like Airbnb — something that platforms like Komoco and Here are trying in the U.S.

In the local market, Stake’s closest competitor is SmartCrowd, which raised a $3 million bridge round in June. Tabbara claims that his company has already surpassed SmartCrowd when it comes to AUM.

“We are banking on our team, technology and experience in dealing with different properties to become the most prominent real estate investment platform in the Middlel East and North Africa (MENA) region,” he said.

Source: Techcrunch

Dubai's main share index followed suit, advancing 0.74% to 3541.6 points following 5,251 transactions worth $141.68mln

Abu Dhabi and Dubai twin bourses rallied for the second consecutive session, as investor sentiments continued to improve, driven by optimistic economic outlook.

The two markets gained a combined AED22bn during the first week of Ramadan, with Abu Dhabi Securities Exchange (ADX) breaking the 10,000 pts barrier for the first time amidst increased demand for IHC's Apex National Investment, which drew AED10.1 bn in transactions.

Dubai's main share index followed suit, advancing 0.74 pct to 3541.6 pts following 5,251 transactions worth AED520.5 million.

The emirate of Dubai has adopted its first law governing virtual assets and established a regulator to oversee the sector, its ruler Sheikh Mohammed Bin Rashid said on Wednesday.

The United Arab Emirates, a federation of seven emirates and the region's financial capital, has been pushing to develop virtual asset regulation to attract new forms of business as regional economic competition heats up.

Virtual assets generally encompass products including crypto currencies and NFTs, but the announcement did not specify which assets would come under the new law.

The Dubai Virtual Asset Regulation Law aims to position Dubai and the UAE as a regional and global destination for the virtual assets sector, Sheikh Mohammed said in a statement carried by state media.

The Dubai Virtual Assets Regulatory Authority will oversee the development of the business environment for virtual assets in terms of regulation, licensing and governance, he said.

The new law will apply throughout Dubai except for the state-owned financial free zone DIFC. DIFC's regulator, the Dubai Financial Services Authority (DFSA), is working on its own regulation for the virtual asset sector.

In October, DFSA released the first part which governs digital tokens, and this week launched a consultation on regulation for crypto tokens, which includes crypto currencies.

The UAE as a whole is getting closer to issuing virtual asset investment regulation, the UAE's Securities and Commodities Authority (SCA) said on Tuesday.

Source: Reuters

Highest value transaction was for land sold in Island 2 for $16mln

Dubai real estate transactions reached 3.2 billion dirhams ($871 million) for the last week of November, with a transaction in Island 2 recorded as the biggest, at 60 million dirhams ($16 million).

The total of 1,186 deals recorded covered 120 plots and 787 apartments and villas.

The mixed use community of Jabal Ali First recorded the most transactions with 49 sales worth AED 138.8 million, followed by Nad Al Shiba Third, with 12 sales transactions worth AED 33.1 million, and Al Yufrah 3 with 11 sales transactions worth AED 10 million.

The top three sales were an apartment, which was sold for AED 310 million in Marsa Dubai, followed by another in Palm Jumeirah which was sold for AED 214 million in Palm Jumeirah, then a Burj Khalifa apartment which sold for AED 173 million.

A special ceremony and fireworks display will kick off tonight marking the opening of Expo 2020, a six-month fair that is expected to attract 1.8 million visitors.

The invite-only event will be broadcast live across more than 430 locations in the UAE, including shopping malls, hotels, airports and other landmarks, starting from 1930 GST.

Viewers from anywhere in the world can also join the opening ceremony through a global live stream, available on virtualexpo.world and Expo TV.

Expo 2020 will open its doors to the public on October 1, 2021 and will run until March 31, 2022. Some 30,000 visitors are expected to visit the site every month, making it the biggest in-person event since the start of the coronavirus pandemic last year.

Where to see the opening ceremony in UAE

Tonight’s ceremony can be viewed through the screens set up in more than 240 hotels, including Emaar’s Rove, Armani, Address Hotels & Resorts and Vida Hotels & Resorts, as well as Accor, Marriott, Hilton, IHG, Rotana, Jumeirah, Hyatt International and Atlantis The Palm.

At least 17 shopping malls operated by Majid Al Futtaim also have some screens set up to showcase the event, as well as City Walk, Nakheel Mall and Ibn Battuta Mall.

The streaming can also be viewed at 50 Jashanmal locations across Dubai and Abu Dhabi, 97 Mediclinics, Dubai and Abu Dhabi International Airports and Zabeel Ladies Club and Sharaf DG.

Viewings will likewise take place at various locations in Umm Al Quwain, Yas Plaza in Abu Dhabi and across various locations in Ras Al Khaimah, including the Corniche, Al Marjan Island and Manar Mall, Ajman Heritage District and Fujairah Fort.

On October 1, fireworks displays to celebrate the start of Expo 2020 are also scheduled to take place in some parts of Dubai, including Dubai Festival City, The Frame and The Pointe in Palm Jumeirah. The fireworks will kick off at 2020 GST.

source: zawya

But rents and prices for apartments have remained subdued: CBRE

Property purchases in Dubai over the past few months have reached levels not seen since almost a decade ago, underpinned by growing demand for bigger private space in the age of remote working and social distancing.

Transaction volumes in the first half of 2021 were at the highest level since the second half of 2013 and increased by 69.2 percent and 46.4 percent compared to the same period in 2020 and 2019, respectively, said CBRE in its latest UAE Market Review.

However, apartment prices and rents have remained subdued.

Sales transactions involving secondary homes from January to June 2021 registered a bigger increase, at 148.4 percent. Off-plan sales were muted, with increases averaging only 13.4 percent over the same period.

In terms of prices, the apartment segment of the market did not do well, with rates dropping by 1.8 percent compared to a year earlier. However, villa prices went up by 12.7 percent.

Dubai rents

Average rental rates in Dubai also fell by 5.9 percent, underpinned by the softening of apartment rental rates, which fell by 8.1 percent.

While overall residential rents have declined, other analysts said that some landlords in Dubai have indeed asked for higher rents this year, but the increases have been limited to properties in premium locations.

“While we have seen a few rental rises in new leases in the range of 5 to 15 percent year-on-year, particularly for prime apartments and villa properties in established locations, the same is not the case for existing tenants looking for lease renewals,” Edward Macura, partner at CORE, told Zawya.

The property sector has been among those least affected by the COVID-19 lockdowns and mobility restrictions. Last year, shortly after restrictions eased in the UAE, buying activity resumed, with investors snapping up villas and flats in many of Dubai’s sought-after locations.

According to a Deloitte report, the robust demand in the housing sector has been due to “high-wage remote workers’ continued strong economic positions, low mortgage rates, and millennials entering the prime homebuying age”.

Office space

Within the commercial segment, CBRE said Dubai’s offices continued to see subdued demand, with rental rates for average Prime, Grade A, Grade B and Grade C spaces falling by 4.5 percent, 6.5 percent, 6.9 percent and 7 percent in the year to June 2021, respectively.

“With new institutional market entrants remaining limited in number, the vast majority of activity continues to stem from existing occupiers,” CBRE said.

There will be limited new supply of office space coming in this year, estimated to be around 1.13 million square feet. “With the majority of this upcoming supply being in non-core locations, going forward, we may begin to see moderation in the rate of declines seen in Prime and Grade A rental rates and uplift in the average occupancy rate,” the report said.

Abu Dhabi

In Abu Dhabi, residential prices went up by 2.4 percent in the year to June this year. Over this period, average apartment prices increased only by 1.5 percent.

Rental rates, on the other hand, remained under pressure, with average rental rates decreasing by 5.3 percent.

Prime and Grade A office rents in the UAE capital, however, went up by 7.5 percent and 2.5 percent, respectively. Grade B rents dropped by 9.7 percent.

Overall, the office space market in Abu Dhabi remains “tenant favourable”, with landlords offering incentives, such as rent-free periods.

source: zawya

Partnership expected to offer investors from GCC and around the world new attractive investment opportunities in a thriving housing market

Dubai-based Ayana Holding has formed a joint venture with Florida’s Marsan Real Estate Group to develop a $1.6 billion (AED 5.88 billion) new project, BellaViva at Whispering Hills, in the US.

The partnership will allow Ayana to establish its presence in North America and help Marsan to expand into a wider market, offering investors from GCC states and around the world new attractive investment opportunities in a thriving housing market, Ayana said in a statement.

Located in Florida, Leesburg, the BellaViva at Whispering Hills project will have golf courses, restaurants, shopping malls, a medical clinic, boutique hotel, spa, hospital, and commercial space, the statement said.

Comprising 5,500 luxury homes across 1,800 acres of pristine land, hills, lakes, nature reserves, and an equestrian center, BellaViva is expected to be the fastest-growing community for retirees and seasoned investors.

Jean Marsan, founder of Marsan Real Estate Group, said: “Although we are not aware of the sole reason for a continuing strong momentum in Florida’s housing market, we believe that a combination of factors including the Hispanic population boom, pro-economic government, and the reputation of being one of the top five tax-friendly states are at play as well.”

In Florida alone, property prices have risen by 6.61 percent since former President Donald Trump declared a state of emergency last March.

It is estimated that by 2030, the average house price in Florida will reach $437,921, putting it in the top ten states ahead of New York and New Hampshire, with a population increase of 6 million over the decade, the statement said.

source: zawya