Real Estate News & Trends from Dubai

    Neither rain, heat nor a full week of holidays can stop the Dubai real estate market from delivering stable results. The real estate market continues to record strong growth. The latest results for the first quarter of 2024 show an impressive transaction volume and underline the resilience and attractiveness of the Dubai market.

    As in Switzerland, tenants in Dubai can be given notice to vacate for certain reasons. The reasons include violations of the rental law, such as non-payment of rent or a general violation of the terms of the rental agreement (illegal activities or causing significant damage to the property). Another reason for termination is a mandatory renovation. However, written confirmation from Dubai Municipality is required for this.

    In the 4th quarter of 2023, the real estate market in Dubai continued to show its best side. A total of 35,430 properties were sold. This represents an increase of 31.1% compared to the previous year. Of the properties sold, 58% were off-plan projects, which in turn accounted for 66% of the sales volume. The total sales value of the transactions amounts to the equivalent of around CHF 40 billion/euro, which corresponds to growth of 12% compared to the third quarter of 2023.

    After experiencing one of the strongest quarters since 2010, the real estate market looks to be starting to slow down in terms of growth. The Dubai Land Department's estimate of real estate value growth will slow to 3% and 4.5% in 2024 and 2025 respectively and stabilize accordingly.

    Summer is over and the temperatures are slowly becoming pleasant. Accordingly, the tourist season has started with great vigor. You can feel and see it on the roads in particular - there is significantly more traffic and congestion again. But now to the development of the real estate market in Dubai:

    Dubai REST (Dubai Real Estate Transaction) is the smart platform for all real estate services. The app was developed by the Dubai Land Department (DLD). The Dubai Land Department (DLD) is the official authority in Dubai that regulates the real estate sector.

    On November 11, 2022, we last informed you about the current status of the Dubai Pearl, the eyesore directly in front of the Palm Jumeirah. In it, we reported that, at best, things could now finally move forward with the Dubai Pearl, since a Canadian hotel company, MOON, has announced interest in the Dubai Pearl and work has resumed on the ruined building.

    As a reminder - the project has been a ruined building since 2002, 21 years ago.

    In November 2022, the demolition of the Dubai Pearl began. Now what has happened since then...?

    Already we are in the third quarter of 2023, looking at a turbulent second quarter marked by growth. Here is a summary and assessment of the market:

    According to Dubai Land Department figures, nearly 30,000 real estate transactions took place in the second quarter, an increase of over 35% compared to the second quarter of 2022. The total value of sales was AED 91 billion, an increase of over 54%. This means prices have risen above everything else.

    It was recently announced that the second tallest building in the city will be erected in Dubai. Thus, a new skyscraper joins Dubai's skyline, which will share the sky with the tallest tower in the world, the Burj Khalifa.

    The name and exact height of the new tower have not yet been announced, but it is expected to top 600m. In comparison, the Burj Khalifa has a height of 828m and has been the undefeated tallest building in the world since its completion in 2010. This new tower will be the second tallest building in Dubai and the fifth tallest building in the world.

    Recently we had the opportunity to visit the island project The Heart of Europe, which is part of The World project, on site. The World are artificially created islands in the form of a world map off the coast of Dubai. The construction of the 300 islands started already in 2003 by Dubai's developer Nakheel.

    Dubai is known for its countless, extravagant and luxurious mega-projects. It houses the world's tallest building, the world's largest shopping mall, the largest indoor ski center, as well as the ever-famous Palm Jumeirah.

    In recent weeks, the well-known developer Nakheel announced its latest project - a 300-meter exclusive residential tower called Como Residences on the Palm Jumeirah. It has often been rumored what might be built on this empty sandy lot next to the Shoreline buildings on the Palm Jumeirah trunk. We were told by security that a new "Shoreline building" was being built here and that this would be announced very soon. As it now turns out, this was not quite true. 😉 This new tower is to be the tallest building on the Palm Jumeirah.

    The real estate market figures for the first quarter of 2023 are once again exceptional. The trend established in 2022 has been largely confirmed and even accelerated in the first quarter of 2023.

    The volume of sales increased by more than 60%

    Official statistics from the Dubai Land Department show an impressive increase in sales volume in the first quarter. The total value of transactions registered in the first quarter exceeds CHF 22 billion (88.7 billion dirhams). This represents an increase of over 60% compared to the first quarter of 2022. As a reminder, 2022 was already one of the record years!