Dubai recorded a 53 per cent annual growth in the value of real estate transactions in March to Dh34.2 billion ($9.3 billion) as the property market experiences resurgent demand amid a wider economic recovery.
The emirate recorded 12,000 real estate transactions last month, a 45 per cent annual increase in volume compared with 8,344 deals during the same time last year, according to a report by real estate listings website Property Finder.
A total of 9,000 sales transactions were registered in Dubai in February.
Off-plan transactions in Dubai accounted for 52.8 per cent of the total property sales in March and 36.8 per cent of the total value, the portal said.
Dubai recorded a 95 per cent annual growth in the volume of off-plan transactions, with 6,400 transactions recorded last month, compared with 3,287 in March 2022.
Dubai Creek Harbour accounted for 12 per cent of the total off-plan transaction value and 10 per cent of the total number of sales, while Dubai Marina represented 11.7 per cent of the sales value and only 3.7 per cent of sales.
Jumeirah Village Circle accounted for 18.4 per cent of the total sales in March, and only 7.7 per cent of the total transaction value.
“March 2023 has recorded an interesting spike in both demand and value for the UAE’s thriving property sector,” Scott Bond, UAE country manager at Property Finder, said.
“We have seen the emergence of new consumer preferences such as a growing incline towards ownership, with an equally sustained growth within the rental market.”
The UAE property market has continued to recover from the coronavirus pandemic on the back of government initiatives, higher oil prices and other measures to support the economy.
Property transactions in Dubai and Abu Dhabi surged last year amid higher demand from buyers.
The performance of the Dubai property market last year was described as "exceptional" by Crown Prince, Sheikh Hamdan bin Mohammed, as the value of deals reached a new high of Dh528 billion.
The value of transactions was up 76.5 per cent annually, while the number of transactions, at 122,658, rose 44.7 per cent year on year, a Dubai Media Office statement said in January.
Meanwhile, Dubai registered a 34 per cent annual growth in the value of secondary or ready property transactions to Dh21.6 billion last month from Dh16.1 billion in the corresponding period last year, Property Finder said.
The volume of secondary or ready properties also went up by 13 per cent annually, with more than 5,700 deals recorded.
This marked the highest volume and value for the month of March in a decade, Property Finder said.
About 60 per cent of people who desire to buy property in Dubai are looking for an apartment, while 40.3 per cent are interested in villas or townhouses.
In March, there was an increase in the share of investors or home seekers looking for apartments to 59.7 per cent, compared with 57.2 per cent last year.
Conversely, those searching for villas or townhouses decreased by 2.5 per cent to 40.3 per cent, from 42.8 per cent.
Among prospective home seekers, the most commonly searched apartment size was two bedrooms, accounting for 34 per cent of total searches, followed by one-bedroom apartments at 32 per cent, the data showed.
In the rental market, about 80 per cent of tenants search for apartments and 20 per cent look for villas or townhouses.
About 33.3 per cent of the tenants searched for one-bedroom apartments in March, followed by 30.4 per cent who prefer two-bedroom units, while 29.4 per cent were looking for studios.
For villas and townhouses, 42 per cent of tenants were primarily looking for three-bedroom units, while 35.5 per cent were searching for four-bedroom or larger options, Property Finder data showed.
The top-searched areas in March for rented apartments were Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah and Jumeirah Village Circle.
Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Damac Hills and Mohammed Bin Rashid City were most preferred among those looking to own and rent villas or townhouses.
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Honeymoonish
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Lexus LX700h specs
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Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
MATCH INFO
Europa League final
Who: Marseille v Atletico Madrid
Where: Parc OL, Lyon, France
When: Wednesday, 10.45pm kick off (UAE)
TV: BeIN Sports
THE BIO
Age: 30
Favourite book: The Power of Habit
Favourite quote: "The world is full of good people, if you cannot find one, be one"
Favourite exercise: The snatch
Favourite colour: Blue
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Seven tips from Emirates NBD
1. Never respond to e-mails, calls or messages asking for account, card or internet banking details
2. Never store a card PIN (personal identification number) in your mobile or in your wallet
3. Ensure online shopping websites are secure and verified before providing card details
4. Change passwords periodically as a precautionary measure
5. Never share authentication data such as passwords, card PINs and OTPs (one-time passwords) with third parties
6. Track bank notifications regarding transaction discrepancies
7. Report lost or stolen debit and credit cards immediately
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Timeline
1947
Ferrari’s road-car company is formed and its first badged car, the 125 S, rolls off the assembly line
1962
250 GTO is unveiled
1969
Fiat becomes a Ferrari shareholder, acquiring 50 per cent of the company
1972
The Fiorano circuit, Ferrari’s racetrack for development and testing, opens
1976
First automatic Ferrari, the 400 Automatic, is made
1987
F40 launched
1988
Enzo Ferrari dies; Fiat expands its stake in the company to 90 per cent
2002
The Enzo model is announced
2010
Ferrari World opens in Abu Dhabi
2011
First four-wheel drive Ferrari, the FF, is unveiled
2013
LaFerrari, the first Ferrari hybrid, arrives
2014
Fiat Chrysler announces the split of Ferrari from the parent company
2015
Ferrari launches on Wall Street
2017
812 Superfast unveiled; Ferrari celebrates its 70th anniversary
Four-day collections of TOH
Day Indian Rs (Dh)
Thursday 500.75 million (25.23m)
Friday 280.25m (14.12m)
Saturday 220.75m (11.21m)
Sunday 170.25m (8.58m)
Total 1.19bn (59.15m)
(Figures in millions, approximate)
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
