On Spotlight

Read the Latest

Dubai Real Estate Leading the Sustainability Movement

Dubai Real Estate Leading the Sustainability Movement

March 4, 2024

The UAE’s real estate market is projected to reach a staggering $710 billion by the end of 2024. Embracing sustainability is becoming increasingly crucial for Dubai’s real estate industry, aligning with the ambitious goals outlined in the UAE Net Zero 2050 and Dubai 2040 Urban Masterplan. Dubai stands as a global leader in sustainability, ranking third worldwide with over 400 projects certified by LEED. This commitment is seen as vital for future-proofing the nation’s real estate market against environmental challenges. Click Here to Read More : Dubai’s Real Estate Market Shifts to Favor Sellers Amid Price Surges Madhav Dhar, Chief Operating Officer and founding member of ZāZEN Properties, emphasizes upcoming developments’ focus on minimizing environmental impacts through energy-efficient buildings, sustainable design, and construction methods. Residential projects in Dubai prioritize natural light, employ thicker concrete slabs for insulation, integrate smart technology, energy-efficient appliances, and even utilize renewable energy sources like solar panels. These initiatives align with the UAE’s extended Year of Sustainability until 2024. Click here to Read More : Surging Demand Leads to Rent and Price Increases for Saudi Villas and Offices in 2023 Certified “green” buildings command higher premiums in Dubai, fetching five to ten percent more than conventional buildings. This trend underscores the growing demand for sustainability, driven by factors encompassing social, economic, and health considerations. The UAE targets a 40% increase in energy efficiency and a 56% reduction in emissions from 2019 levels by 2030. Alida Saleh, Head of Sustainability – MEA at JLL, highlights the nation’s transition towards a “Climate Aware” phase, fostering climate mitigation and adaptation strategies to achieve Net Zero by 2050. Click Here to Read More : Dubai Real Estate Sector Soars to New Heights in 2023: Insights from Savills Over 80% of UAE residents advocate for prioritizing prevention of further environmental damage. ZāZEN Properties underscores the significance of sustainability in future real estate projects, citing its potential to bolster the UAE’s GDP by approximately $1 trillion before 2050. A UBS Global Wealth Management survey reveals that 75% of investors in the UAE foresee sustainable development as the norm by 2030. This shift is reflected in the burgeoning interest in environmentally conscious developments, with 93% of investors prioritizing longevity over traditional return on investment metrics. Developers focusing on sustainable, community-centric projects with top-notch amenities are poised to reshape the UAE’s real estate landscape. Such initiatives not only align with regional and global green objectives but also contribute significantly to the country’s economy. With sustainability taking center stage, Dubai’s real estate sector is poised for a transformative journey towards a greener, more resilient future.

Read More »
Surging Demand Leads to Rent and Price Increases for Saudi Villas and Offices in 2023

Surging Demand Leads to Rent and Price Increases for Saudi Villas and Offices in 2023

March 4, 2024

A recent report highlights the persistent supply constraints in Saudi Arabia’s real estate market, contributing to significant increases in both office rents and residential property prices throughout 2023. CBRE’s latest findings reveal a notable surge in average office rents for Grades A and B units in Riyadh, with rates soaring by 13% to 22.2% over the twelve months leading up to the fourth quarter of 2023. Meanwhile, occupancy rates remained exceptionally high, ranging between 99.4% and 100%. Villa prices witnessed a remarkable uptick of up to 5.5%, while apartment prices surged by as much as 10.7% during the same period. Click Here to Read More : Dubai’s Real Estate Market Shifts to Favor Sellers Amid Price Surges The Saudi Arabia Real Estate Market Review for Q4 2023 by CBRE underscores the continuous rise in villa prices across major cities, coupled with a substantial 63.7% increase in residential real estate transactions compared to the previous year’s corresponding period. Taimur Khan, Head of Research – MENA at CBRE, notes that demand consistently surpasses supply across various real estate sectors in Saudi Arabia, resulting in robust market performance despite prevailing economic challenges. Click Here to Read More : Dubai Real Estate Sector Soars to New Heights in 2023: Insights from Savills Despite the anticipation of new unit deliveries, Khan predicts that the real estate market’s supply level will continue to lag behind demand in the coming year, ensuring sustained strong performance. In Riyadh, all office grades experienced rent hikes in the lead-up to Q4 2023, with Prime units witnessing a 20.7% increase, and Grades A and B units recording increases of 13% and 22.2%, respectively. Notably, the King Abdullah Financial District (KAFD) observed a substantial leasing surge, with approximately 65% of its space leased, indicating heightened demand from both domestic and international tenants. Click Here to Read More : ASALDI Properties Launches $80 Million ‘Shades’ Project in Egypt Outside Riyadh, Jeddah experienced robust demand, evidenced by a 19.7% increase in Grade A office rents. Additionally, Grade A and Grade B office occupancy rates in Jeddah rose to 92.5% and 82.1%, respectively. The Eastern Province witnessed similar trends, with Grade A office rents increasing by 7.4% and 7.2% in Dammam and Khobar, respectively, accompanied by high occupancy rates nearing full capacity. In the residential sector, Riyadh, Jeddah, Dammam, and Khobar saw average villa price increases ranging from 0.3% to 5.5% in the year leading up to Q4 2023. Apartment prices also surged, except in Jeddah, where prices experienced a slight decline of 1.9%. Overall, the relentless demand for real estate in Saudi Arabia continues to drive rent and price increases, with market dynamics favoring sellers and property owners amidst ongoing supply constraints.

Read More »
Dubai's Real Estate Market Shifts to Favor Sellers Amid Price Surges

Dubai’s Real Estate Market Shifts to Favor Sellers Amid Price Surges

March 4, 2024

Dubai’s real estate landscape is witnessing a transition into a seller’s market, driven by the substantial gains experienced over the past three years in property prices. Industry experts suggest that as the rapid surge in real estate prices begins to stabilize, some investors are considering capitalizing on their assets by selling and exploring emerging markets for potentially higher returns. Click Here to Read More : Dubai Real Estate Sector Soars to New Heights in 2023: Insights from Savills The surge in real estate prices has been remarkable, surpassing the peak levels seen in 2014, propelled by extraordinary demand following the pandemic-induced slowdown. Interestingly, many buyers who entered the market during the pandemic are now seizing the opportunity to sell their properties, having witnessed up to 200 percent appreciation in asset value over the past few years. Click Here to Read More : ASALDI Properties Launches $80 Million ‘Shades’ Project in Egypt According to a study by Betterhomes, sellers are currently in a favorable position, benefiting from increased real estate transactions and rising prices fueled by heightened buyer demand. Louis Harding, managing director at Betterhomes, highlights the advantages for sellers, including the potential for lucrative returns on investment and the absence of capital gains or property taxes in Dubai. Click Here to Read More : Union Properties Achieves Land Disposal Success in Dubai, Eyes Further Growth Toni Abou Jaoude, sales manager at Betterhomes, emphasizes that optimal selling conditions arise when sellers can reap significant profits, enabling reinvestment in additional properties. Analyzing data trends, Jaoude asserts that a seller’s market indicates strong demand, limited inventory, and consistent returns for investors and end-users. Click Here to Read More : Binghatti’s $300 Million Sukuk Issuance Receives Strong Investor Response However, Jaoude notes that while demand among end-users has surged over the past two years, driven by escalating rental prices citywide, it presents an opportune moment for sellers to realize profits on their real estate investments. Regarding the best areas for returns, Jaoude cites downtown, District 1 MBR, Jumeirah, Palm Jumeirah, DIFC, and communities like Bulgari, La Mer, Nikki Beach, and MJL. Looking ahead to 2024, Mayed Alrashdi, a research analyst at Emirates NBD, acknowledges Dubai’s real estate market’s strong performance in 2023 despite challenges such as rising interest rates. Alrashdi anticipates potential headwinds in 2024, including high interest rates, declining affordability for average households, and an increase in the supply of new residential units. He suggests that the anticipated increase in supply should help stabilize residential real estate prices this year, mitigating some of the affordability concerns. Overall, Dubai’s real estate market presents sellers with favorable conditions to capitalize on their investments, while also navigating potential challenges on the horizon in the coming year.

Read More »
Dubai Real Estate Sector Soars to New Heights in 2023: Insights from Savills

Dubai Real Estate Sector Soars to New Heights in 2023: Insights from Savills

March 2, 2024

In 2023, Dubai’s real estate market witnessed unprecedented growth, achieving record-breaking transaction activity in the residential sector. According to a recent report by global real estate services provider Savills, the residential sector experienced a remarkable 29 percent annual growth, reaching an all-time high of 118,200 units sold, marking the first time transactions surpassed 100,000 in the emirate. Click Here to Read More : ASALDI Properties Launches $80 Million ‘Shades’ Project in Egypt This surge in activity can be attributed to various factors including Dubai’s growing and diversified economy, recent policy changes such as adjustments to the requirements for real estate investors to qualify for the Golden Visa, and the city’s expanding expatriate population. Savills’ Dubai Property Market Report for 2023 highlighted the dominance of under-construction properties in meeting demand, with 55 percent of units sold being off-plan. While end-user activity slightly decreased, there was a notable shift towards investment-driven transactions, particularly in the latter half of the year. Click Here to Read More : Union Properties Achieves Land Disposal Success in Dubai, Eyes Further Growth Key areas witnessing heightened transaction activity included Dubai Sports City, Arabian Ranches, Jumeirah Village Circle, and Dubai Hills Estate. Apartments remained the most transacted property type, constituting 78% of all transactions. Looking ahead, Swapnil Pillai, Associate Director of Research at Savills Middle East, emphasized the real estate industry’s positive outlook, fueled by the expansion of non-oil sectors and favorable growth prospects. However, Pillai noted the risk of oversupply in select assets and locations, which may moderate future price increases. The office real estate market also experienced a surge in demand in 2023, driven by government initiatives to promote job creation and economic growth. High-quality, green-certified assets were particularly sought after, reflecting a growing emphasis on sustainability. The Dubai International Financial Centre (DIFC) emerged as a highly sought-after micro-market, witnessing a substantial increase in rents, especially in Grade A developments. Mergers and acquisitions activity further fueled demand for office space across the city. Additionally, co-working space providers experienced steady growth, catering to the demand for flexible and affordable workspace solutions. In the industrial and logistics sector, Dubai saw resilient growth, with demand expected to remain robust in 2023. High-quality warehouse facilities, especially those exceeding 10,000 square meters, remained scarce as occupiers sought modern, sustainable spaces to accommodate future expansions. Overall, Dubai’s real estate sector in 2023 was characterized by expansion, driven by new market entries, consolidation activities, and a growing emphasis on sustainability and operational efficiency.

Read More »
ASALDI Properties Launches $80 Million 'Shades' Project in Egypt

ASALDI Properties Launches $80 Million ‘Shades’ Project in Egypt

March 2, 2024

ASALDI Properties introduces its groundbreaking project, Shades, with a total investment of EGP 2.5 billion, marking a significant entry into the Egyptian real estate market. The company aims to invest EGP 10 billion over the next five years, underscoring its commitment to the region’s growth. Click Here to Read More : Union Properties Achieves Land Disposal Success in Dubai, Eyes Further Growth Specializing in office and commercial real estate, ASALDI Properties’ founder, Hany Al Assal, recognizes the promising opportunities within the Egyptian market. Mohamed Hany Al Assal, the co-founder, highlights the sector’s strong demand, emphasizing Shades’ investment value of EGP 2.5 billion. Click Here to Read More : Binghatti’s $300 Million Sukuk Issuance Receives Strong Investor Response Shades, spanning 48,000 square meters with a leasable area exceeding 18,000 square meters, represents ASALDI Properties’ inaugural commercial and administrative venture in East Cairo. Boasting four floors and over 400 parking spaces, Shades features a diverse array of facilities including offices, clinics, restaurants, shops, and entertainment areas. The company commenced operations and sales for the Shades project in December 2023, with an expected completion date by the end of 2025. By combining strategic investment with a comprehensive understanding of market dynamics, ASALDI Properties is poised to redefine Egypt’s real estate landscape, offering innovative solutions tailored to the evolving needs of businesses and communities alike.

Read More »
Union Properties Achieves Land Disposal Success in Dubai, Eyes Further Growth

Union Properties Achieves Land Disposal Success in Dubai, Eyes Further Growth

March 2, 2024

Union Properties, a leading developer in Dubai, is making strategic moves by selling non-core land assets, signaling a significant milestone in its turnaround strategy and garnering substantial financial support. Click Here to Read More : Binghatti’s $300 Million Sukuk Issuance Receives Strong Investor Response Having already disposed of assets worth over Dh500 million, Union Properties emphasizes its strategic vision and commitment to maximizing shareholder value. Additionally, the company has received offers totaling Dh1.2 billion for other land sales, demonstrating its strong market positioning and capitalizing on opportunities in the Dubai real estate market. Click Here to Read More : Dubai Real Estate Witnesses Surge in Rent Prices: Dubizzle Annual Property Market Report Amer Khansaheb, Managing Director of Union Properties, highlights the company’s plan for strategic divestments while retaining approximately 10 million square feet of GFA from the current portfolio for self-development, aligning with the 5-year strategy set in 2023. These efforts are aimed at fostering sustainable growth and leveraging the strength of the portfolio to generate sustainable returns. Click Here to Read More : Rise in Luxury Property Prices in Dubai and Manila Defies Global Trends: Knight Frank Report Khansaheb further emphasizes Union Properties’ confidence in the strength of its portfolio and its ability to capitalize on the increased land values in Dubai over the past two years. With a sizable land bank, particularly in rapidly developing areas of Dubai, Union Properties is strategically positioned for future freehold developments. Click Here to Read More : Emaar Unveils Exclusive Lifestyle Destinations Worth AED 91 Billion Analysts suggest that Union Properties will benefit from reducing its land bank and focusing on strategic projects to improve cash flow, given its funding situation. In addition to land disposal, Union Properties has pursued legal action to recover funds owed by its former chairman, amounting to over Dh600 million, and entered into a debt refinance agreement with Emirates NBD, extending the repayment period. Click Here to Read More : Emaar Honors Dubai’s Top 20 Real Estate Companies Overall, Union Properties’ recent successes in land disposal and strategic initiatives position the company for further growth and sustainability in the dynamic Dubai real estate market.

Read More »
Binghatti's $300 Million Sukuk Issuance Receives Strong Investor Response

Binghatti’s $300 Million Sukuk Issuance Receives Strong Investor Response

March 2, 2024

Binghatti, a prominent developer based in Dubai, has achieved a significant milestone with the successful launch of its inaugural $300 million, three-year sukuk issuance. This Islamic bond, priced competitively at 9.625%, has tightened by 30 basis points, showcasing robust investor confidence and demand. Click Here to Read More : Dubai Real Estate Witnesses Surge in Rent Prices: Dubizzle Annual Property Market Report Global investors have shown remarkable interest in this offering, driving the order book to peak at 2.1 times subscription, reflecting a strong demand for Binghatti’s sukuk. The order book soared to $621 million, underscoring the widespread appeal of the investment. Prior to the issuance, Binghatti engaged with investors through international roadshows in Asia and the UK, attracting a diverse range of stakeholders. Notably, significant contributions to the order book hailed from the UK, Europe, and Asia, highlighting a broad investor base. Click Here to Read More : Rise in Luxury Property Prices in Dubai and Manila Defies Global Trends: Knight Frank Report This transaction marks the first MENA-region sukuk in 2024 benchmarked in real estate and denominated in US dollars, adding to its appeal for investors seeking diverse investment opportunities. Emirates NBD, Dubai Islamic Bank, HSBC, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Mashreq Bank, and RAKBank served as joint lead managers (JLMs) and book runners, facilitating the successful execution of the sukuk issuance. Click Here to Read More : Emaar Unveils Exclusive Lifestyle Destinations Worth AED 91 Billion Muhammad BinGhatti, CEO of Binghatti, expressed delight at the overwhelming success of the debut sukuk issuance, attributing it to investors’ trust in the company’s business model and investment proposition. He emphasized that the market’s enthusiastic response underscores Binghatti’s esteemed position in the sector. In conclusion, Binghatti’s inaugural sukuk issuance has garnered significant attention from global investors, reflecting confidence in the company’s growth prospects and solidifying its position as a leading player in the real estate sector.

Read More »
On FingerTips

From Around the World

Compare listings

Compare

Sign-Up Now

  • All Rights Reserved
  • NBS Real Estate