Yas Island, Al Reem Island, and Saadiyat Island are projected to emerge as the top three locations by transaction value in Abu Dhabi, while the areas surrounding UAE’s upcoming first-ever casino in RAK are anticipated to clock the highest return on investments for investors next year, the AI-based study by Dubai-based global proptech Realiste said.

“Amidst the ever-shifting landscape of real estate opportunities, three emirates – Abu Dhabi, Ras Al Khaimah and Dubai – will emerge as magnetic hubs for investors in 2024,” the study predicted.

“Each emirate boasts unique strengths and opportunities for investors looking to capitalise on the region’s dynamic growth.”

The Realiste research showed that at $2,365 per sqm, the average cost per square meter property prices in Ras Al Khaimah is significantly lower among other cities with casinos, compared to a staggering $49,911 in Monaco and $15,153 in Singapore, underscoring the substantial potential for property value appreciation in the emirate, highlighting its attractiveness to potential investors.

It also projected a robust return on investments of up to 50 percent for some of the projects in Abu Dhabi’s upcoming and popular islands over the next three years, turning them among the most sought after residential property markets in 2024.

Real estate market boom to spread beyond Dubai in 2024

Abu Dhabi, and Ras Al Khaimah, along with Dubai, beckons as distinct gems for investors in 2024, Realiste said.

Abu Dhabi, epitomizing stability, offers steady organic growth and proven profitability in prime locations, while Ras Al Khaimah, propelled by a groundbreaking casino, stands out with affordable prices and a burgeoning tourism scene.

Meanwhile, Dubai will continue to lead the bull run in the UAE’s real estate market with its innovation and resilience promising substantial growth, with iconic projects showcasing sustainability, the study said.

“Together, these emirates encapsulate an opportunity, where each investment choice signifies a strategic move in the evolving landscape of Middle Eastern real estate,” Realiste said.

Investors could expect over 50% returns in short spans

Abu Dhabi, with its fast diversification with the mix of cultural and entertaining objects, besides hosting more than 100 global events, concerts or festivals annually, is projected to offer both top notch return on investments and high rental yields, luring real estate investors from around the world in the coming year.

The capital city’s high target for international tourist arrivals – its reported target for 2023 is 24 million visitors – will be a growth driver for short-term rental property also, the study said.

Q Property’s upscale projects  Maskan and Makany on Reem Hills and Aldar’s Gardenia on Yas Island are among the residential projects which are projected to fetch over 50 percent return, while 9 Yards’ Sea La Vie on Yas Island is estimated to see over 30 percent investment appreciation to investors in just a three-year span.

The Gardenia and Sea La Vie projects are also projected to get over 10 percent rental yields to investors.

“[The Abu Dhabi real estate market] exhibits solid organic growth with lower speculative demand, reducing the risk of sharp declines in property values, making it a highly attractive investment destination,” said Realiste, which operates in over 100 cities around the world.

As for RAK, the Realiste study said the emirate’s real estate prices have seen considerable surge in recent months, following the announcement on the casino opening and riding on the boom in tourist arrivals, leading to an estimated over 25 percent spike in hotel room occupancy growth in 2023.

“The announcement of the first casino in the UAE has propelled Ras Al Khaimah into the spotlight, attracting substantial foreign investments and driving tourism,” the study said, adding that this could propel real estate prices, especially in areas around the casino, in the coming months and years.

Bloomberg estimates potential annual gaming revenue of $6.6 billion in RAK, surpassing even Singapore.

The Realiste research said the total transaction value in RAK’s real estate market continues its upward trajectory, nearly reaching the cumulative value of the entire previous year in the first eight months of 2023.

Dubai will continue to offer high returns to investors

The Realiste AI-based study also predicted continued high price growth in key Dubai areas such as Dubai Hills, Sobha Hartland, and Bluewaters Island, with a projected growth forecast ranging from 18.5 percent to 22.1 percent within one year.

“Dubai’s commitment to cutting-edge urban planning sets it apart. The emirate still represents the most significant earning potential for investors,” Alex Galt, CEO and founder of Realiste, told Arabian Business.

“For example, iconic projects such as the Dubai Hills development showcase a harmonious blend of sustainability, and innovation. In 3 years, property prices in the area have grown by an impressive 83 percent, and in the next 5 years, we forecast a further 43 percent growth, making it an attractive prospect for investors seeking long-term appreciation,” Galt said.

Source : ArabianBusiness

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The UAE property market has seen remarkable growth in the recent years. The launches of the new real estate projects across the country are accelerating this momentum in the sector.

Ras Al Khaimah’s real estate sector is no exception as the emirate is witnessing booming developments.

Durar, a leading high-end real estate developer in the UAE, renowned for its impressive J One Towers in the Burj Khalifa district, has launched MASA Residences, an upscale branded residential development in Ras Al Khaimah, offering investors the prospects of high capital appreciation and owner-occupiers idyllic waterfront homes equipped with world-class amenities.

The Dhs700 million ($190.58 million) interior by YOO inspired by Starck-branded residential project, marking Durar’s’ debut in the UAE’s Northern Emirates, is set to enhance the landscape of Al Marjan Island, a stunning man-made archipelago in Ras Al Khaimah.

Christie’s International Real Estate Ras Al Khaimah, an affiliate of the globally renowned Christie’s International Real Estate, is the Exclusive Sales and Marketing Agency for this prestigious development.

MASA Residences is Durar’s first collaboration with YOO, co-founded by international property entrepreneur John Hitchcox and celebrated designer Philippe Starck.

The development will feature studio, one- and two-bedroom apartments along with ground-floor villas, offering captivating views of the Arabian Gulf. The upscale apartments will boast uninterrupted and breathtaking sea panoramas.

 “Our vision has always been to create idyllic high-end branded residences, and Al Marjan Island in Ras Al Khaimah is the ideal destination. Each and every room in the apartment offers breathtaking sea views and the strategic location development of the project promises exceptional high capital appreciation for our investors and an unparalleled living experience for owner-occupiers and tenants,” commented Durar Chairman Ibrahim Alhabib.

“We have partnered with YOO, the world’s top designer brands, to offer premium interior residences. The island’s thriving tourism activity presents our buyers with the potential for substantial capital gains and promising yields,” Alhabib stated.

Christie’s International Real Estate Ras Al Khaimah’s Managing Partner Jackie Johns stated: “Offering an ultimate beach-front setting, an enviable location and uninterrupted vistas of the shimmering Arabian Gulf, MASA Residences is ideally situated three minutes from the upcoming integrated resort, Wynn Al Marjan Island.”

The heightened development activity in Ras Al Khaimah signals a promising era of growth and progress, she said, adding, “We are thrilled to announce the opening of our office in Ras Al Khaimah and our collaboration with Durar on MASA Residences.”

“Our extensive research and market data indicate a steady increase in demand for housing dwellings in Al Marjan Island. We believe the time is right to unveil a premium branded residential project. We are excited about the project’s launch and confident of a sellout,” Johns concluded.

Source : GulfToday

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In the ever-evolving global investment landscape, investors are continuously drawn to new opportunities that offer value, stability, and growth. Dubai, known for its exceptional quality of life, unmatched safety, strong connectivity, tax benefits, and business-friendly environment, has emerged as a prime destination for international investors, particularly those from the United States.

This burgeoning appetite is not incidental but a calculated alignment with value, opportunity, and security that the city offers. When juxtaposed with other global cities, Dubai’s property prices not only stand competitive but also promise appreciable returns on investment.

Prime property prices in Dubai are notably cheaper by 20 percent-80 percent when compared to major cities such as Monaco, Hong Kong, New York, London, Geneva, Paris, Beijing, and Tokyo, even amidst a massive increase in rates during the post-pandemic period. A million dollars can secure a luxurious property in Dubai with an area of over 100 square metres (sqm), in stark contrast to 17sqm in Monaco, 21sqm in Hong Kong, and 33sqm in New York.

Moreover, the introduction of investor and golden visas through property acquisition has further sweetened the investment proposition, ensuring investors not only gain financial returns but also a gateway to global mobility and an enhanced lifestyle.

With a substantial diaspora from the MENA region, the U.S finds a cultural and economic bridge in Dubai, making it easier for investments.

A top FDI destination

Dubai’s ascension as a global leader in attracting Foreign Direct Investment (FDI), especially in future-oriented sectors, is noteworthy. The city, under the visionary leadership of Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, has forged dynamic partnerships with international investors, accelerating innovation and creating enduring economic value.

In 2022, Dubai not only maintained, but solidified its position as the leading destination city globally for greenfield FDI projects, with 837 announced projects, according to the Financial Times ‘fDi Markets’ data. This achievement, amidst global uncertainty and economic challenges, is a testament to the city’s competitive strengths and attractiveness.

Moreover, the comprehensive strategy of the Dubai Economic Agenda (D33 Agenda), which aims to double the size of Dubai’s economy over the next decade, is set to further elevate the emirate’s status as a preferred destination for major international companies, investment, talent, and visitation.

In 2022, the US ranked third for FDI in Dubai, accounting for 11 percent, with many investors having recognised and leveraged the multifaceted opportunities offered by this vibrant city. The strategic geographical positioning, coupled with a robust economic and technological infrastructure, makes Dubai a pivotal axis in the global economic machinery.

As we navigate through the complexities of global investment terrains, Dubai emerges not merely as a viable but as a compelling destination for U.S. investors. At Berkshire Hathaway Home Services (BHHS), we are not only witness to this transformative investment wave but are also active participants, facilitating U.S. investors in navigating through Dubai’s promising property market.

Source : Zawya

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Riyadh is fast emerging as a serious contender in the real estate sector globally, challenging Dubai’s long-standing dominance, riding on the back of a huge price advantage over the UAE city and the Saudi government’s big push to woo international investors through financial incentives, a latest industry report revealed.

A vast pool of potential domestic investors – estimated at 37 million, besides the rising number of international investors, are the other factors that could propel the Saudi capital city to become the new regional hot spot for real estate investments.

“In stark contrast to Dubai, Riyadh’s affordability has been a key magnet for investors, promoting substantial economic expansion,” the report by Dubai-based proptech Realiste said.

“In comparison to real estate prices in other global cities, Riyadh offers notably affordable options at an average cost of $1,394 per square meter, whereas Dubai showcases prices at $7,002 per square meter,” the AI-driven analysis-based report said.

“Investments in Saudi Arabia are expected to reach hundreds of billions of dollars in the next 5 years, which will certainly raise prices and open up new opportunities for investors to receive multiple refunds,” Alex Galt, founder of Realiste, told Arabian Business.

The average sale prices for apartments are expected to surge by 22 percent, while villa prices are anticipated to rise by 12 percent year-over-year in Riyadh, according to data from Knight Frank.

The global consultancy’s data also showed that Riyadh is set for remarkable growth with over 1.5 million available units and a projected 10 percent increase in supply by 2025.

Dubai vs. Riyadh: The competitive edge

Realiste said while Dubai has long been a powerhouse in the real estate market, Riyadh is fast emerging as a contender for remarkable growth and dominance in various aspects, fuelled by Saudi Arabia’s rising status as a global innovation and economic powerhouse boosting the capital city’s burgeoning real estate market.

“With ambitious initiatives, robust economic growth, and an increasingly attractive investment environment, Riyadh is poised to challenge Dubai’s long-standing reign as the regional real estate leader,” said the report by Realiste, which operates in over 100 cities worldwide.

The numbers on economic growth and current trends in real estate prices indicate that Riyadh is indeed set for remarkable growth, signalling a promising future for Saudi Arabia’s real estate market and its potential to outperform Dubai, it added.

“Saudi Arabia is obviously the next big market – it is home to 37 million people. While prices – vis-a-vis the world market – are still low, the housing area there remains one of the largest in the world,” Galt said.

“In addition, there is a lot of need for infrastructure development and construction, which creates a great demand for quality housing,” the Realiste founder said, adding that “domestic demand, especially, is growing vigorously”.

Government push to further boost Saudi real estate sector investment potential

The report said government-sponsored measures to enhance the city’s infrastructure, advance technology, and foster cultural hotspots have been instrumental in attracting visitors and investors to Riyadh.

To address the increasing land and housing prices, Saudi Arabia has allocated 100 million square meters of land for the residential sector in the capital and other cities.

“This move aims to balance supply and demand, allowing for a more sustainable growth pattern,” the Realiste report said.

Alex Galt, founder and CEO of Realiste

“Investment demand is also fuelled by the fact that foreign investors were previously restricted the right to purchase real estate, but now everyone expects that they will get such an opportunity,” Galt said.

A booming market with enormous potential

The report said with a burgeoning population, increasing demand for housing and lifestyle facilities, supportive regulatory frameworks, and its strategic regional location, Saudi Arabia’s real estate market is expected to soar with vast potential in the coming years.

The country remains an attractive destination for global investors, despite the current regional challenges, it added.

Galt said despite some possible difficulties in the region, such as the situation with Israel and Hamas, most expect Saudi Arabia to become the next huge market in the next 5 years.

“It will continue to grow, attracting the attention of investors from all over the world, including Europe, Russia, and Arab countries,” he said.

Source : ArabianBusiness

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An under-construction oceanfront mansion in Abu Dhabi hit the market Monday for AED 98 million (US$26.7 million), the most expensive villa on the market in the U.A.E. capital.

The seven-bedroom property is part of the Ohana by The Sea development, an upscale coastal enclave close to Dubai. It’s expected to be move-in ready at the tail end of 2025.

The villa is “a truly unique property and is located in one of the most exclusive communities in Abu Dhabi and offers stunning views of the Arabian Gulf,” according to Evgeny Ratskevich, CEO of listing agency Metropolitan Capital Real Estate.

Spanning 32,000 square feet, the enormous house will offer features including private beach access, three living rooms, two salons, a home office, two maids’ rooms and a driver and guard’s room.

There will also be a large terrace, three gardens, multiple swimming pools and sea views.

The listing of the villa, and its sizable price tag, “is a testament to the strength of the Abu Dhabi real estate market,” Ratskevich said. “The city has seen a significant increase in demand for luxury properties in recent years, and prices are expected to continue their upward trajectory.”

Abu Dhabi’s property market saw the value of its transactions soar 103% to AED 6.1 billion in the year to the second quarter of 2023, according to data from Knight Frank.

Meanwhile, prices rose 2.8% in the same time, but are still lower than the 2014 market peak.

Villas outperformed apartments in the second quarter, “in part due to a limited supply pipeline, but also due to the persistent desire by households for larger homes as well as their relative price stability,” Knight Frank said. Villa prices grew 4.7% over the second quarter and 5.7% over the year.

Source : MansionGlobal

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Demand for properties in Ras Al Khaimah is growing exceptionally well, mainly driven by investors looking for long-term rental income and short-term holiday home rentals. Numerous private developers are setting sights on the emirate’s real estate market to cash in on the demand, especially after the announcement of the $3.9 billion (Dh14.3 billion) gaming resort Wynn Al Marjan Island in Ras Al Khaimah.

Being developed by local partners Marjan LLC and RAK Hospitality Holding, the hospitality and gaming project will attract thousands of visitors from around the world. This project is expected to boost the profile of the emirate, with high-profile investors pumping money into the projects on Al Marjan Island.

SOLD OUT

“It is high time to look at Ras Al Khaimah, especially Al Marjan Island. There is an unprecedented demand from investors for projects coming over there. The entire stocks on the Al Marjan Island have been sold out. And they are offering exceptionally good returns to investments,” said a real estate executive during a conference recently in Dubai.

He pointed out that a strong secondary market is also emerging for the northern emirate’s property market, which is a good sign of the maturity and stability of the market.

In September, RAK Properties sold out phase one of Cape Hayat on the first day of its launch, reflecting the demand for the off-plan is strong. Cape Hayat is located on Hayat Island, Mina Al Arab, and is a luxury collection of residential apartments with direct access to the beach and views across the Arabian Gulf and Hajar Mountains.

John Allen, CEO of valuation and advisory at Asteco, said the increase of large-scale investments in Ras Al Khaimah by local and international hospitality players marked a new phase of development and has had and will continue to have a positive impact on the real estate market.

The emirate’s property market is proving particularly strong, partly due to its relative affordability when compared to Dubai.

“The primary driver of demand is currently from the investment sector which includes investors seeking long-term rental income, short-term holiday home rentals and/or expectations of capital appreciation. The number of first-time buyers has also increased with many long-term residents seeking to gain a foothold on the property ladder,” he said.

Furthermore, there is also increasing demand for secondary homes, from international buyers as well as UAE residents, seeking a local getaway.

OUTLOOK

Going forward, the northern emirate’s property market is predicted to continue its robust growth backed by supporting infrastructure, complementary policies, and a diversified economy. Over the past two decades, the real estate sector has recorded a substantial increase in development activity and a shift in demographics. “The expansion of the RAK’s tourism sector will continue to promote the construction of hotels and resorts, as well as retail, leisure and adventure facilities, boosting residential demand,” said Allen.

According to Obaid Salami, general manager of Dubai Investments Real Estate, investing in Ras Al Khaimah presents a compelling opportunity for several reasons.

“Firstly, RAK offers a strategic location with easy access to major markets in the Middle East and beyond. Its proximity to key transport hubs like ports and airports enhances logistical advantages for businesses. Secondly, it has a business-friendly environment with investor-friendly policies, including 100 per cent foreign ownership and zero taxation. This fosters a competitive advantage for businesses and investors alike,” said Salami.

RAK also boasts a diverse economy, with thriving sectors like manufacturing, tourism, real estate, and renewable energy, providing investors with a range of opportunities to diversify their portfolios.

1,000 NEW UNITS

Most of the new supply is on reclaimed land along the coast, and it represents a significant addition and improvement over existing properties. The coast’s growth as a freehold destination has resulted in a variety of master-planned, waterfront, mixed-use (residential and hospitality) developments, including Al Hamra Village, Mina Al Arab, and Al Marjan Island.

“We anticipate that around 1,000 residential units will be delivered within these developments in 2023-24, representing a significant 10 per cent increase in existing stock. In recent years, there has been a surge in activity within these masterplans, with a slew of new project debuts and construction proceeding at pace,” said Allen.

Some of the most recent launches include Dubai Investments agreement with Al Marjan Island master developer in October-November 2022 to acquire land to develop Dh1 billion Danah Bay, a mixed-use waterfront destination with an area of approximately 90,000 sqm with 40,000 sqm of beach.

The development will have 209 villas, a residential tower with 128 apartments and a 300-key 4-star upper-scale hotel, operated by the Millennium and Copthorne Middle East Holdings. The construction commenced late 2022 and the first phase is earmarked for completion in Q4 2024.

Obaid Salami said the response garnered for Phase 1 is promising and the group aims to keep up the momentum and carve a niche for upcoming projects in the future.

He revealed that Dubai Investments “continues to explore new opportunities and evaluates the market conditions. The group will actively consider possibilities of new projects in Ras Al Khaimah with the aim to contribute further to the region’s growth and provide attractive investment opportunities.”

The launches also consist of Bayviews Residences, a beachfront development comprising studios, 1 BR and 2 BR apartments, located on Hayat Island, Mina Al Arab, launched by RAK Properties in May 2023, and a residential beachfront development on Hayat Island, a collaboration between RAK Properties and Dubai-based Ellington Properties.

Additionally, Al Hamra awarded the main works package for the construction of 502 villas and townhouses on Falcon Island (located within Al Hamra Village) ranging from 2BR to 7BR units and UAE-based Luxe Developers broke ground on Oceano, a twin-tower waterfront development located on Al Marjan Island, comprising 206 apartments over 18 floors.

Moreover, Aldar acquired a beachfront plot located on Al Marjan Island, spanning over 430,000 sqft to develop a residential community comprising a mix of over 2,000 branded and premium residences with access to retail spaces, a beach club and 2km of private beach.

Source : Zawya

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The value of real estate and infrastructure projects announced since Saudi Arabia rolled out its National Transformation Plan in 2016 has crossed $1.25 trillion, agency Knight Frank has said.

With the execution deadline of the end of this decade fast approaching, the kingdom has commissioned projects worth $250 billion so far since the launch of its Vision 2030 economic and social diversification programme, the global real estate consultancy said in its annual Saudi Giga Projects report.

Saudi Arabia, the Arab world’s biggest economy and Opec’s top oil producer, is aiming to cut its dependence on the sale of hydrocarbons.

Riyadh’s overarching Vision 2030 agenda seeks to further develop the kingdom’s industrial base, broaden the country’s infrastructure and advance sectors including real estate, health and education to create more jobs for its rapidly expanding population.

The development of the tourism and hospitality sector is one of the central planks of Vision 2030. Saudi Arabia’s sovereign investment arm, the Public Investment Fund, is backing several projects in the kingdom including the $500 billion futuristic city Neom, and multi-billion-dollar developments on the Red Sea coast, as well as in Riyadh.

“Arguably one of, if not the most, expansive real estate development programmes ever seen in the world is gathering pace in Saudi Arabia as the 2030 deadline nears to realise Vision 2030,” Faisal Durrani, partner and head of Mena research, said.

Saudi Arabia, which was the fastest-growing major economy last year, aims to receive 100 million tourists by 2030 and is investing heavily in expanding its retail and hospitality offerings.

Knight Frank said the value of real estate and infrastructure projects across the western half of the country has climbed to $687 billion.

“The western half of the kingdom contains the highest concentration of headline-grabbing projects in the country, including of course Neom,” Harmen de Jong, partner and head of strategy, Saudi Arabia, at Knight Frank said.

In the last year, authorities announced various sub-components in Neom, including Trojena, the host location for the 2030 Asian Games, as well as Sindalah, a luxury island that will be the first of Neom’s projects to materialise.

“Neom overall is also progressing rapidly, with $70 billion of projects now awarded, 45 per cent of which has been completed,” he said.

The transformation is “clearly visible across the entire urban landscape”, as the planned giga projects are set to vastly expand the residential, office, retail, hospitality and industrial offerings to accommodate the projected population growth to 50 million by 2030, the report said.

Riyadh, in particular, is a hive of development activity and currently accounts for 18 per cent of all real estate projects under way, totalling about $229 billion, Knight Frank said.

The volume of residential units planned has climbed 30 per cent over the past 12 months to 660,000 units, which is “welcome news” for prospective homeowners.

A rise in the values of residential properties in recent quarters led to a nationwide decline in the volume of homes being sold in the kingdom, according to the report.

“Affordability is still a key hurdle for many buyers and so price points for the new inventory will be critical to reigniting domestic demand,” Mr Durrani said.

In the commercial market, 5.3 million square metres of retail space is now planned, with a further 289,000 hotel rooms that “will go some way to supporting Saudi Arabia’s goal of hosting 100 million visitors by 2030”, he said.

The office real estate pipeline in the kingdom is also steadily growing, reaching six million square metres.

“The swelling of the office pipeline is set against a backdrop of a severe shortage of prime Grade-A space in cities such as Riyadh, which stands in stark contrast to other global centres where occupancy levels still trail pre-pandemic levels,” Mr Durrani said.

Source : TheNational

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Riyadh, Saudi Arabia: Barratt London and the recently launched Barratt London MENA office, led by UAE-based Hardington Residential, will be targeting Middle East investors with a range of projects offering high yields and impressive projected capital appreciation when the company makes its debut at Cityscape Global, which takes place from 10-13 September in Riyadh, Saudi Arabia.

One project being showcased to investors on Hardington Residential’s dedicated stand at the international property showcase is Barratt London’s award-winning Hayes Village regeneration project, which was recently visited by British Prime Minister Rishi Sunak, where he announced an additional US$250 million (£200 million) of government funding for development of new housing on brownfield areas in the English capital.

Homes at Hayes Village, set on a former Nestlé factory site, range from one-bedroom apartments to three-bedroom family properties, with some still retaining the elegant Art Deco featured in the original factory. Barratt London’s latest offering within the development is the Richart Apartments, a collection of one- and two-bedroom apartments, with prices starting from US$415,000 (£329,000). The development is surrounded by parks and gardens planted with 250 new trees and includes fitness trails, outdoor gym equipment and play areas to improve health and wellbeing.

A footpath also connects the development to Hayes and Harlington train station in less than a nine-minute walk, with high-frequency Elizabeth Line trains into central London in 30 minutes.

Stuart Leslie, International Sales and Marketing Director at Barratt London said: “Similarly to our other major regeneration schemes, Hayes Village is proving popular with overseas buyers, particularly those from the Middle East where we have seen significant interest and sales from individuals and family offices from Saudi Arabia, Kuwait, Qatar and the UAE.

“There has been a significant uptick from buyers in the Middle East looking for a home in London for work or as a home for children who are studying in the capital. With projected capital growth of 19% in the next five years and expected rental yields of up to 5.9%, the development offers great value for money, piquing the interest of Middle Eastern investors keen to diversify their portfolios in a reputable and potentially lucrative market.”

Another Barratt London development making waves amongst Middle Eastern investors is the recently launched Wembley Park Gardens, a new landmark development built in the heart of Wembley Park, an area famous with football fans worldwide as the home of the England national football team.

In addition to football fans, overseas investors have quickly recognised the area’s transformation, following US$3.5 billion (£2.5 billion) of regeneration in the last 20 years. In the previous five years, rents in the area have increased by 49%, compared to the 23% London average. Furthermore, despite benefiting from the regeneration of Wembley Park and the redevelopment of Wembley Stadium, according to research from JLL, the neighbourhood is still 30% cheaper than the Greater London average, further underscoring the return on investment opportunities.

The development will deliver a smart collection of 302 one- and two-bedroom apartments to the market, featuring outdoor private space, with prices starting from US$495,000 (£395,000) and handover for phase one expected by summer 2025.

Residents will benefit from a world-class destination, offering a good choice of shopping, world-class restaurants, picturesque green spaces, highly rated schools and cultural and leisure attractions. Central London is just 20 minutes via the Underground, while overground stations provide easy access to the countryside and key British towns and cities, such as Oxford.

Ian Plumley, Managing Director, Hardington Residential, said: “Investors in the Middle East have been quick to recognise the unparalleled financial opportunities many of the capital’s regenerative areas are offering, including Wembley Park Gardens, where robust yields, impressive return on investment and substantial capital appreciation have resulted in a spike in interest from interested buyers in this region.

“Cityscape Global represents an excellent opportunity to showcase the quality of the developments offered by Barratt London while also providing an overview of the potential financial remuneration investors can expect. We will have a team on hand able to outline everything from the areas within London where the developments are located to applying for mortgages, ensuring a confident and informative process.”

Barratt MENA will be exhibiting at Cityscape Global in Hall 1, Stand R64, with Stuart Leslie and Ian Plumley available for interview throughout the show.

Source : Zawya

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The improved economic conditions and higher per capita income in the UAE has acted as significant driver for high-net-worth individuals seeking attractive investment opportunities and a luxurious lifestyle in the country. — File photo

The UAE has established itself as a hub for investors, entrepreneurs and is home to some of the world’s wealthiest people and an increasing number of expatriates. The country’s tax-efficient environment, global connectivity and ease of setting up a business has made it a prime destination to park wealth.

With the country’s GDP on the rise, income generated is distributed among the population, increasing the average per capita income. This increase has translated into a higher standard of living for residents, offering them greater financial resources and purchasing power. The improved economic conditions and higher per capita income in the UAE has acted as significant driver for high-net-worth individuals (HNWIs) seeking attractive investment opportunities and a luxurious lifestyle in the country.

Moreover, factors such as its safe haven status, highly diversified economy, well-established healthcare system, luxury shopping and restaurants on offer, prime residential property market, reputed international schools and all-year round leisure activities have aided the influx of wealthy individuals in setting up their homes, on UAE shores.

The government has also pushed towards establishing itself as a hub for wealthy and potential investors. It has opened up several economic sectors to 100 per cent foreign investment. It has also begun a ‘UAE Residence by Investment’ program, under which qualified individuals are given a 10-year renewable residence permit to retain talent and draw even more wealthy foreign investors. The UAE has recently implemented long-term visas and reduced certain job visas and social norms to improve its international image and attract those who wish to live, work and invest there. In 2022, the UAE attracted more than 5,200 HNWIs, the highest globally.

Following the Covid-19 pandemic, Dubai became the preferred resort for the world’s wealthy, hosting approximately 68,400 millionaires. According to Henley & Partners’ ‘Private Wealth Migration Report 2023’, more than 4,500 millionaires are expected to relocate to the UAE this year.

Most of the HNWIs will relocate to the UAE from India, followed by the UK, Russia, Lebanon, Pakistan and other Asian and African countries. The UAE is home to around 109,900 millionaires with $1 million-plus wealth, 298 centi-millionaires with $100 million-plus assets and 20 billionaires.

The influx of HNWIs in the UAE has stimulated demand for the already thriving real estate market, especially for luxurious properties in Dubai that offer exclusive amenities. These discerning investors seek upscale residential properties, including high-rise penthouses, luxury villas, and waterfront mansions, among others.

The UAE’s real estate market has responded to this rise in demand by providing a wide array of prestigious projects with developers focusing on state-of-the-art infrastructure, often incorporating exclusive services and features such as private beach access, yacht berths, and personalized concierge services to cater to the expectations and preferences of HNWIs. Notably, Dubai has been ranked as the world’s fourth-most active market in the luxury residential segment as sales of prime properties continue to rise.

According to Knight Frank, Dubai witnessed a total of 92 deals worth $1.7 billion in first quarter of 2023 for homes valued at $10 million or more. By comparison, Hong Kong had 67 transactions valued at $988 million, while New York raised $942 million in 58 deals, and London completed 36 sales worth $736 million.

HNWIs plan to spend $2.5 billion on Dubai property this year, with around 22 per cent prepared to commit $5 million to $10 million on real estate in the Emirate and eight per cent ready to spend more than $80 million. The report also states that East Asian buyers have a higher spending propensity, with many prepared to allocate more than $20 million to buy property in Dubai.

In 2022, approximately $3.8 billion was spent on homes in Dubai, priced at more than $10 million. Expanding their property portfolio, especially in high-end villas and apartments, has emerged as the primary reason to invest in Dubai for those with a net worth of more than $10 million. There is also a shift in preference from off-plan purchases to recently built or completed homes.

The UAE real estate market has continued to recover from the pandemic due to government initiatives, higher oil prices and other measures to support the economy. In first quarter of 2023, the average prices for homes above $10 million reached approximately $1,970 per sqft, translating to a 16 per cent y-o-y increase from $1,700 per sqft in 2022.

Dubai residential prices jumped 13 per cent annually in first quarter of 2023, driven by strong demand for ready-built homes in the luxury segment. On a quarterly basis, prices rose 5.6 per cent, marking the ninth consecutive quarterly growth. Villa prices surged 15 per cent y-o-y basis to reach $395.8 per sqft, while apartment prices rose 12 per cent y-o-y basis to $334.9 per sqft. Quarterly, villa and apartment prices increased by 5.1 per cent and 5.7 per cent, respectively.

Nevertheless, buying luxury properties in Dubai is still cheaper to buy, with rental and investment yields higher than in other major cities such as London or Hong Kong. Consequently, property transactions in Dubai and Abu Dhabi have surged amid higher buyer demand. In Dubai, Downtown Dubai and The Palm Jumeirah were noted as the most preferred areas for HNWIs looking to buy property in the Emirate.

Consequently, several top operators such as Emaar, Nakheel, Meraas, Dubai Properties, Sobha Realty, Omniyat, ALEC, Aldar, Deyaar, Damac, Mag, and The First Group, among others, have launched high-end properties with a strong pipeline of projects that specifically cater to HNWI needs. Among the major players, Omniyat has made significant strides and established itself as a builder offering residential, business, hotel, and retail spaces for a one-of-a-kind premium experience. The company has sold four of the most expensive penthouses in the region, worth more than $70.8 million — located at the company’s ONE and AVA at Palm Jumeirah, Dorchester Collection development.

Omniyat sold the first penthouse in 2017 for a record price of $27.8 million — at the time, the most expensive apartment sold in Dubai. The second and third most expensive penthouses were sold in Dubai for around $23.1 million in 2021 and $19.9 million in 2019. In 2023, Sotheby’s International Realty sold the most expensive penthouse ever in Palm Jumeirah for approximately $59.9 million. The transaction was for a penthouse at Omniyat’s AVA at Palm Jumeirah, Dorchester Collection.

The luxury home boom has rippled through the wider property market, increasing apartment and villa prices. As such, Dubai’s luxury real estate residential market is projected to record 13.5 per cent growth in 2023, the highest growth rate for any prime market globally.

The luxury residential property segment in Dubai is expected to continue to rise as prices are likely to sustain an upward trend, albeit at a slower pace, due to rising demand from HNWIs, tight supply and fewer launches of new ultra-high luxury developments.

Going forward, the government will likely encourage more project launches to keep Dubai’s supply of high-end properties more sustainable. A demand-supply imbalance could lead to rents shooting up further, which could further elevate existing constraints and make sustainability a challenge.

Nevertheless, the outlook for this niche market remains bullish and offers several opportunities for investors and developers as the UAE economy continues to outpace its global peers.

Source : Zawya

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