The property landscape in Dubai is abuzz with activity, as the latest figures from the first quarter of 2024 shed light on the trends shaping the market. According to a comprehensive report by Property Finder, Dubai’s property sector experienced a surge in sales transactions, with both off-plan and ready properties vying for investor attention.
Transaction Overview:
Total Transactions: The first quarter of 2024 witnessed a remarkable total of over 36,000 sales transactions, highlighting the vibrancy of the Dubai property market.
Existing Properties: Existing projects took the lead, comprising 54% of the total transactions, signaling a preference towards ready properties among buyers.
Transaction Values: The cumulative transaction value in Q1 2024 amounted to AED 78.2 billion ($21.3 billion), underscoring the substantial financial activity in the sector.
Market Share Dynamics:
Ready Property Surge: The ready property segment saw significant growth, with nearly 19,600 transactions, reflecting a robust volume increase compared to the previous year.
Off-Plan Resilience: Despite a marginal uptick in volume, off-plan sales transactions maintained relevance, contributing 46% of the total transaction volume.
Growth Prospects and Opportunities:
Market Resilience: Dubai’s property market presents ample opportunities for developers and brokers to capitalize on the current buoyant environment and drive innovation.
Diverse Demand Patterns: The evolving demand patterns in the market necessitate adaptive strategies to cater to the dynamic preferences of property seekers.
Optimistic Outlook:
Positive Forecast: Industry experts foresee a promising growth trajectory ahead, fueled by changing market dynamics and evolving consumer behaviors.
Empowering Decision-Making: The advancement of proptech solutions is set to empower buyers with comprehensive insights, enabling more informed decision-making processes.
The data gleaned from the Dubai Land Department underscores the robust performance and sustained interest in the property sector during Q1 2024, signaling resilience and favorable market conditions. With a surge in total sales transactions and a healthy mix of off-plan and ready property sales, Dubai’s property market sets an optimistic tone for the remainder of the year.
For deeper insights into the evolving property trends in Dubai, you can refer to the original article on Arabian Business.
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The United Kingdom’s resilient property market is set to attract more Gulf capital in 2024, despite signs of a slowing global economy and rising interest rates. Industry insiders have revealed that investments in UK real estate from Gulf investors will remain strong this year, bolstered by recent deal activity and the forthcoming ETA visa scheme.
Data from real estate consultancy Knight Frank indicates that the 10-year average annual GCC investment into UK commercial property stands at around $3.4 billion. When considering investment in UK residential assets, the figure is even larger. The UK, and London in particular, is viewed as a safe haven for investors due to its cultural, historical, retail, and educational appeal.
However, higher interest rates have impacted demand for UK property. Last year, transaction levels dipped by approximately 10 percent, but prices remained relatively stable, with only a 2.1 percent fall in Prime Central London.
Despite these challenges, there is renewed optimism in the property market as the economy begins to stabilize and mortgage rates become more attractive. That said, with a general election expected in the summer, it’s unclear how long this window of opportunity will last.
The weakening of the British pound against other major currencies like the US dollar has made UK properties more attractive to Gulf investors. As a result, GCC-based investors have increased their allocation to UK real estate as they seek opportunities created by market distress.
Berkeley Group has noted a significant surge in purchase inquiries from the region, suggesting that the current position of the pound is not lost on investors. The multifaceted appeal of the UK property market, including long-term capital appreciation prospects and attractive financing opportunities, means the UK’s resilient property market is poised to lure more Gulf capital in 2024.
Although recent interest rate hikes may cool some property sectors, lower prices, and select yield plays appear to still attract Gulf investors. The UK real estate market remains a bullish prospect for Gulf investors, despite the economic slowdown.
Gulf Cooperation Council (GCC) investors are showing an increased sophistication and understanding of diverse opportunities in the UK real estate market. According to a report by CNBC, many economic observers have pointed to the Gulf states, particularly the UAE and Saudi Arabia, as leveraging their oil wealth and geographic advantages to make strategic investments1.
Simmons, a renowned real estate expert, noted that GCC investment in UK real estate significantly increased last year from 2022 levels, with activity witnessed throughout the UK and not just confined to Central London. He highlighted the region’s growing sophistication and understanding of the diverse opportunities available across the country.
Middle Eastern investors have been particularly active in prime market segments, ramping up deals targeting higher-value properties even as global transaction volumes fell in 20232. “We think GCC investment into UK Commercial Real Estate market will continue to grow throughout 2024 and be more in line with the long-term trend – [circa] £2.5 billion – £3 billion,” said Simmons.
Aiding this growth is the UK government’s recent implementation of a streamlined Electronic Travel Authorisation (ETA) visa scheme. Initially introduced for Qatari nationals in 2023, the scheme, which reduces bureaucracy for international travel and business visits to view assets, will be extended to include nationals of Bahrain, Kuwait, Oman, United Arab Emirates, Saudi Arabia, and Jordan starting February 13.
However, while the ETA scheme may assist in facilitating investment, it won’t be the primary driver of deals. “The ETA scheme may add some assistance but won’t be the main thrust behind the majority of decision-making,” said Simmons. Instead, he advises potential investors to tread carefully, highlighting the importance of partnering with the right advisors and being aware of the details in dealmaking.
As Gulf investors continue to grow more sophisticated in their investment strategies, the UK real estate market can expect to see continued interest and investment from the region in 2024.
