The UAE’s property market is “on steroids”, but may be headed for a correction, according to investors who attended Aldar’s sales launch of its third development at Coca-Cola Arena on Thursday.
Queues of property brokers and buyers were forming on the streets of City Walk outside the 17,000-capacity arena as early as 8.30am ahead of the Abu Dhabi developer’s sales launch for The Wilds.
It is a family-friendly residential community with up to 1,700 properties that will integrate greenery and wildlife.
A total of 800 villas were available to buy on Thursday in the first of three sales phases this year. While almost half were sold to Aldar clients privately on Wednesday, another 700 appointments were lined up at the arena, with all plots expected to sell out before the end of the day.
Meanwhile, over in Sharjah, UAE developer Arada sold out its new Dh5.6 billion ($1.52 billion), 975,000-square-metre Masaar 2 development in three hours. It had sold all 2,000 units by noon on Thursday, making it the company's fastest-selling off-plan project in the emirate.
Peter Lawson, a property investor with a portfolio of 20 residences across the UAE, who attended the event in Dubai, said the rush this week to buy properties is a reflection of the current market, which he said is “on steroids at the moment”.
“We wondered if there’s going to be a correction, but I would say considering for Dh5 million I can buy somewhere on Palm Jumeirah overlooking the most iconic skyline in the world at the moment, but if I go to London, Barcelona or Munich that would be 5 million euros – I think the market as a whole is actually undervalued," he said.
Demand for family homes skyrockets
Dubai's real estate sector has maintained a strong growth momentum in recent years, recording deals worth Dh761 billion ($207.2 billion) last year, up 20 per cent annually. This boom is supported by government initiatives such as residency permits for retired and remote workers, an expanded golden visa programme, as well as robust economic growth in the UAE.
While developers such as Aldar are working fast to meet rising demand as the country’s population continues to grow, experts believe there is still plenty of room for more options.
This is particularly true for family homes in Dubai, said property broker Ana Carolina Barni, who was helping a client buy a new home on Thursday in The Wilds. “Ten years ago, for Europeans, they would come here on holiday or maybe the father would come as a businessman," she said.
"But now the whole family is moving over and there is more and more need for family homes in Dubai, especially with these kinds of amenities, as you don’t want to leave your community.”
Mother-of-two Gauhar, who owns a chain of nurseries for Russian-speakers and has lived in Dubai since 2009, bought a four-bedroom villa in The Wilds, her first family home. She had been looking for a while but had struggled to find something that met her criteria. “I’ve been looking for something that is family-orientated, something new, something fresh,” she told The National.
Going wild for nature
Located along Sheikh Mohammed bin Zayed Road, opposite Global Village, The Wilds, which is scheduled for completion in 2029, will feature a range of apartments, villas and five- and six-bedroom mansions designed by Lebanese architect Nabil Gholam. The project will incorporate native plants, a woodland, dry stream habitats, community gardens, duck houses, bee-keeping zones and more.
British celebrity survivalist Bear Grylls attended the launch as the development’s ambassador. “What I like about The Wilds is that you can roll out of your house and people aren’t going to think you’re mad for walking barefoot through the forest areas, but actually you’re in Dubai,” Mr Grylls told The National during the event.
“I like things that are innovative and pioneering, especially when it comes to families and creating and developing things that are about becoming more connected.”
Property broker Milana, who was rushing to take her place in the growing queue outside Coca-Cola Arena, was certain this development would be popular among buyers. “It’s going to sell out today, for sure.”
Sharjah’s Masaar 2 has a similar ethos steeped in nature. The units range from two-bedroom town houses to five-bedroom villas, and features will include "a large-scale, swimmable forest lagoon with waterfall".
Construction at the project is due to start before the end of 2025, with the first homes scheduled for completion by the end of 2027. The full development, with all its amenities, will be ready by 2028, Arada said.
While family-friendly, nature-based communities are in high demand, Dubai’s Beyond Developments is betting on waterfront property, as it also launched new beachfront residences on Thursday. Its third project, Sensia, is an eight-million-square-foot master-planned development at Dubai Maritime City.
“The appetite from local, regional and international investors for high-quality waterfront development remains strong, and the success of our projects at Dubai Maritime City is a testament to this growing demand,” said chief executive Adil Taqi.
Fluctuation 'doesn't matter' for long-term investors
Mr Lawson bought a five-bedroom villa for Dh7.8 million in The Wilds and said he thought it could have been 20 per cent more expensive. “I believe on handover, that will be north of Dh13 million.”
Keen investor Ankur Malik also bought a three-bedroom property, which starts at Dh5.1 million, the third Aldar property he now owns. This was a “fair price”, he told The National. “I expect it to go up.”
He chose The Wilds because he “wanted to have something unique” and was attracted by the availability of stand-alone villas as opposed to town houses, which are more common across other developments in Dubai.
Mr Malik echoed Mr Lawson’s sentiment that there could be a correction in the market coming. “Long-term investors need to hold the property,” he added. “If you have the capacity to hold the property, then the fluctuation doesn’t matter.”
