Real Estate News & Trends from Dubai

    On November 11, 2022, we last informed you about the current status of the Dubai Pearl, the eyesore directly in front of the Palm Jumeirah. In it, we reported that, at best, things could now finally move forward with the Dubai Pearl, since a Canadian hotel company, MOON, has announced interest in the Dubai Pearl and work has resumed on the ruined building.

    As a reminder - the project has been a ruined building since 2002, 21 years ago.

    In November 2022, the demolition of the Dubai Pearl began. Now what has happened since then...?

    Already we are in the third quarter of 2023, looking at a turbulent second quarter marked by growth. Here is a summary and assessment of the market:

    According to Dubai Land Department figures, nearly 30,000 real estate transactions took place in the second quarter, an increase of over 35% compared to the second quarter of 2022. The total value of sales was AED 91 billion, an increase of over 54%. This means prices have risen above everything else.

    It was recently announced that the second tallest building in the city will be erected in Dubai. Thus, a new skyscraper joins Dubai's skyline, which will share the sky with the tallest tower in the world, the Burj Khalifa.

    The name and exact height of the new tower have not yet been announced, but it is expected to top 600m. In comparison, the Burj Khalifa has a height of 828m and has been the undefeated tallest building in the world since its completion in 2010. This new tower will be the second tallest building in Dubai and the fifth tallest building in the world.

    Recently we had the opportunity to visit the island project The Heart of Europe, which is part of The World project, on site. The World are artificially created islands in the form of a world map off the coast of Dubai. The construction of the 300 islands started already in 2003 by Dubai's developer Nakheel.

    Dubai is known for its countless, extravagant and luxurious mega-projects. It houses the world's tallest building, the world's largest shopping mall, the largest indoor ski center, as well as the ever-famous Palm Jumeirah.

    In recent weeks, the well-known developer Nakheel announced its latest project - a 300-meter exclusive residential tower called Como Residences on the Palm Jumeirah. It has often been rumored what might be built on this empty sandy lot next to the Shoreline buildings on the Palm Jumeirah trunk. We were told by security that a new "Shoreline building" was being built here and that this would be announced very soon. As it now turns out, this was not quite true. 😉 This new tower is to be the tallest building on the Palm Jumeirah.

    The real estate market figures for the first quarter of 2023 are once again exceptional. The trend established in 2022 has been largely confirmed and even accelerated in the first quarter of 2023.

    The volume of sales increased by more than 60%

    Official statistics from the Dubai Land Department show an impressive increase in sales volume in the first quarter. The total value of transactions registered in the first quarter exceeds CHF 22 billion (88.7 billion dirhams). This represents an increase of over 60% compared to the first quarter of 2022. As a reminder, 2022 was already one of the record years!

    After buying a property, it doesn't take long before you are contacted by supposed real estate specialists who would like to sell the property and also already have a potential buyer - which is often not true at all.

    You wonder from where real estate agents get your personal contact information, such as cell phone number or e-mail address?

    Dubai is built for car traffic and public transport is still in its still in its infancy. Above all, the connections are not really designed to be user-friendly.

    With the project THE LOOP, Dubai wants to better connect and network with theclaimThe aim is to combine cycling and public transport for longer distances.

    Review of the year 2022

    According to Property Finder's latest Zeitgeist 2022 Report, the Dubai real estate market experienced another record-breaking year in 2022. By November 2022, over 88,000 sales were recorded with a total value of AED 83 billion. The value of off-plan transactions accounted for 44% of the total. (In the previous year, the approximately 60,000 transactions reached AED 44 billion).

    The most sought-after villa and residential districts were Palm Jumeirah, Downtown Dubai, Jumeirah Village Circle (JCV), Jumeirah Beach Residences (JBR), Jumeirah Lake Towers (JLT), Dubai Hills Estate, Arabian Ranches, DAMAC Hills, The Springs and Mohamed Bin Rashid City.

    The $6 billion Dubai Pearl megaproject was announced in 2002. Due to a change of management and various delays, the project has been at a standstill for 16 years - an eyesore right in front of the Palm Jumeirah.

    When buying a property, you always hear how important the location of the property is.
    But how important is it really?

    For us a clear -VERY IMPORTANT!