Our monthly report uncovers some interesting shifts for property investors, owners and real estate stakeholders, in relation to last month performance of the market.
November has been a month of consolidation offering great opportunities for rebalancing of portfolios and identifying new opportunities.
Pullback in sales volume after a previous record month
-34% decrease from the prior month, in sales transactions volume, but 13% higher compared to same month last year. This is in line with average volume per month this year.
Lower Sales values as well
40.47 billion AED (or 11.02 billion USD) in total sales value, being -4% lower than last year and -34% lower than prior month
Dubai real estate market trends
-40% decrease vs previous month, in total sales transaction value with off-plan properties, resulting in a -30% decrease from last year.
-15% decrease from previous month in sales value for ready properties which is -9% lower compared to same month last year.
Check out our research on key considerations for buying off-plan vs ready properties in Dubai.
Jumeirah Village Circle (JVC) and Business Bay continue to be the top choice for investors, last month by sales volume, followed by Wadi Al Safa 5 and Dubai Marina.
The percentage share of overall transactions volume by asset class* for November:
Apartments 80 %
Villas and Townhouses 14 %
Commercial properties 3 %
Land plots 3 %
Dubai offers a blend of benefits, for foreign investors looking to enter the property market, such as:
Freehold property ownership and Zero property tax
Zero personal income tax or capital gains tax, or withholding tax
lowest corporate income tax rate of 9%
100% foreign business ownership
100% repatriation of capital investment and total profit earned
10-year investor Golden Visa
Investor-friendly policies providing foreign investment protection
One of the world’s top tourist centers
Last month, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai, reviewed the progress of the Dubai Land Department (DLD) towards achieving the objectives of the Dubai Real Estate Sector Strategy 2033
Dubai Holding plans to set up two REIT's, according with Bloomberg News, by combining several commercial real estate assets in it's portfolio, which may then be listed in 2025.
The online publication outlined a more comprehensive overview of the real estate market on another article as well, looking at publicly listed equities in DFM from companies such as Deyaar Development (current price/share 0.970 AED), Emaar Properties (current price/share 9.70 AED), Emaar Development (current price/share 11.55 AED), Al Mazaya Holding, TECOM Group (current price/share 3.17 AED) and Union Properties (current price/share 0.428 AED)
Last month was also announced that the only Real Estate Investment Trust listed on DFM market, Al Mal Capital REIT (AMCREIT), is seeking regulatory approvals to open to foreign investors of up to 30% and planning on expanding its portfolio with new healthcare assets in 2025.
Conclusion
Dubai's real estate sector thrives supported by a secure and stable foundational environment, bolstered by robust laws and regulations that protect investor rights and capital. These strengths are a significant contributor to the sector's impressive growth in the past couple of years.
Staying informed about Dubai real estate market trends, is key for making strategic investment decisions in this dynamic market.
Source: Dubai Land Department; DXB Interact, Dubai Media Office
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