Month: June 2023

In the vibrant city of Dubai, it’s crucial to stay informed about the potential rental increase before your lease agreement comes to an end. Luckily, the Dubai Land Department has introduced a useful tool called the Rental Index feature, allowing customers to calculate the expected rent hike accurately.

To ensure a fair rental market, landlords in Dubai are obliged to provide a notice period of 90 days before raising the rent. However, it’s important to note that landlords can only increase the rent within the limits set by the Dubai Land Department.

Determining the permissible rent increase is a straightforward process. You can easily access the Land Department’s RERA Calculator, which provides the exact amount by which the rent can be raised. This calculation is based on a comparison between your current rent and the average market rental rate in your specific area.

The Land Department’s Decree Number 43 outlines the following guidelines that landlords must follow:

• If your current rent is less than 10% below the average market rate, no rent increase is permitted.

• If your current rent falls between 11% and 20% below the average market rate, a maximum increase of 5% is allowed.

• If your current rent is between 21% and 30% below the average market rate, a maximum increase of 10% is permitted.

• If your current rent falls between 31% and 40% below the average market rate, a maximum increase of 15% is allowed.

• If your current rent is more than 40% below the average market rate, a maximum increase of 20% is permitted.

By understanding these regulations, tenants can better anticipate potential rent increases and plan their budgets accordingly. Stay informed and make use of the available resources to ensure a smooth rental experience in Dubai!

Dubai has become the talk of the town with the emergence of the priciest property listing in the city, as reported by Bloomberg.

Valued at a staggering AED750 million ($204 million), this opulent estate takes inspiration from the renowned Palace of Versailles. Nestled in the prestigious Emirates Hills, the mansion boasts an astounding 60,000 square feet of indoor living space and features a great five-bedroom layout.

One aspect that sets this property apart is the sheer grandeur of its primary bedroom, spanning an extraordinary 4,000 square feet. Remarkably, this single bedroom surpasses the size of numerous average homes.

Given the moniker “Marble Palace” by its selling agents, this architectural marvel was meticulously crafted for nearly 12 years. The construction alone required an estimated investment of AED80 million to AED100 million, primarily dedicated to importing premium Italian stone.

Adding to its allure, the “Marble Palace” boasts an astonishing display of luxury with approximately 700,000 sheets of meticulously applied gold leaf.

For 9 months, 70 skilled artisans painstakingly adorned the residence, elevating its magnificence to unprecedented heights.

The current state of the home reveals the owner’s discerning taste, as it showcases around 400 pieces from a personal art collection. These treasures predominantly consist of statues and paintings dating back to the 19th and 20th centuries.

While the owner, an undisclosed local property developer, is willing to entertain negotiations including these remarkable artworks and furnishings in the sale, their identity remains a well-kept secret.

In 2022, Dubai set a remarkable record by attracting an unprecedented 451 projects in the cultural and creative industries, solidifying its position as the world’s ultimate destination for foreign direct investment (FDI) in these sectors. This outstanding achievement has not only cemented Dubai’s status as the capital of the creative economy but has also generated a staggering 12,368 job opportunities.

When it comes to FDI capital influx, Dubai’s cultural and creative industries experienced substantial growth, reaching an impressive AED 7.357 billion in 2022. This surge in capital has further enhanced Dubai’s reputation as the leading force in the MENA region and propelled it to the 12th spot globally, a remarkable leap from its 14th position in 2021.

The findings of the Dubai FDI Monitor report, which draws data from the reputable ‘fDi Markets’ by the Financial Times, substantiate Dubai’s top-ranking status. According to the report, Dubai emerged as the global leader in attracting FDI projects in the cultural and creative industries, while maintaining its 6th position worldwide in job creation through FDI. The majority of FDI projects in Dubai’s cultural and creative sectors were in the form of greenfield projects, which constituted 76% of the total.

Dubai’s unparalleled success in attracting FDI projects can be attributed to:

•  its robust infrastructure,
•  well-established legal framework,
•  thriving creative and digital ecosystem 

These factors have transformed Dubai into an irresistible hub for innovators and investors alike, providing a fertile ground for turning ambitious projects and visionary ideas into tangible economic ventures.

The United States, India, the United Kingdom, France, and Switzerland emerged as the key foreign direct investors based on the report’s analysis of FDI projects. In terms of FDI capital inflows, the top countries were the United States, India, Switzerland, France, and the United Kingdom. 

Dubai Culture & Arts Authority played a pivotal role in fostering strategic relationships with these markets through active engagement and targeted missions. By showcasing Dubai’s unique creative landscape and forging collaborations with entrepreneurs and organizations worldwide, Dubai has solidified its position as a magnet for global FDI.

Dubai’s commercial real estate sector also experienced strong growth in H1 2023, with a nearly 30% increase in value, reaching AED2.86 billion.

The Dubai real estate sector has defied talks of a slowdown in the first half of 2023, generating approximately $28 billion (AED93.18 billion) in residential property sales revenue from January to June 7. This marks a remarkable 46.71% jump from the $17.29 billion (AED63.51 billion) recorded during the same period last year.

Data from Asette, the Dubai-based AI-driven proptech platform, reveals that total sales volume reached 46,835 units in the first half of this year until the first week of June, compared to 34,627 units in the entire first half of 2022. This represents a notable spike of 35.25%.

Similarly, the commercial real estate sector in Dubai also demonstrated robust growth in H1 2023, experiencing a close to 30% increase in value, reaching AED2.86 billion compared to AED2.21 billion during the same January to June period last year.

In terms of volume, the commercial sector witnessed sales of 1,681 units from January to June 7, 2023, in contrast to 1,495 units sold during the half-year period of the previous year.

Leena Vesterinen, CEO and Founder of Asette stated that the sustained market growth reflects Dubai’s appeal to property investors worldwide. She attributed this attractiveness to factors such as the stable economy, favorable visa policies, high quality of life in the UAE, and the ongoing development of Dubai’s infrastructure.

May recorded the highest growth rate in the residential real estate sector, surpassing 102% compared to the same period the previous year, reaching AED22.74 billion. January followed closely behind with a 98% growth rate (AED17.22 billion). April, on the other hand, had the slowest growth rate at 29.97% (AED13.38 billion), primarily due to the higher base effect in April 2022, while the significant growth in the first two months of this year can be attributed to lower sales figures in the corresponding months of the previous year.

In the commercial real estate sector, May also exhibited the highest growth rate at 118%, generating AED644.61 million from the sale of 412 units (compared to 192 units in May 2022). February had the slowest growth rate at a mere 1.64% (AED358.48 million) from the sale of 261 units.

Vesterinen noted that the Dubai residential property market has recently seen the entry of a new segment of first-time buyers. These buyers are attracted by comparatively lower property prices in prime locations, both in off-plan and secondary property markets, in comparison to other popular cities like London or New York City.

Dubai continues to attract the best of the best! Now we’re talking about the highly anticipated international music festival. 

Prepare for an extraordinary experience as the superstar DJ himself, Armin Van Buuren, will grace the stage at the Untold Dubai music festival. This electrifying event is scheduled to kick off in February 2024, promising an unforgettable spectacle for music enthusiasts from around the globe.

During a captivating unveiling event, Armin Van Buuren revealed that a stellar lineup of talented DJs will accompany him at this international extravaganza. 

As the excitement builds, it’s worth noting that Van Buuren has already embarked on a grand promotion of Untold Dubai. He recently broke a world record by performing an awe-inspiring DJ set on the iconic Burj Khalifa, utilizing the largest LED screen in the world to create an unforgettable visual spectacle.

Anticipation for this sensational event is running high, and although tickets are not yet available for purchase, demand is expected to be overwhelming. Enthusiastic fans are encouraged to secure their spots by registering for tickets at www.untold.ae.

The Untold festival brand has established itself as one of the most renowned music events in Europe, drawing in over 375,000 attendees and showcasing a lineup of more than 200 international artists. The magnetic connection between Armin Van Buuren, Untold Festival, and its devoted fanbase is undeniable. 

In a heartfelt Instagram message, Van Buuren expressed his elation about the upcoming show in Untold Dubai, stating, “I’ve never felt as alive as I do on stage at Untold. That’s what makes this forthcoming performance at Untold Dubai so incredibly thrilling for me. I am honored to perform atop the Burj Khalifa and break 2 world records while doing what I love most—sharing music with the fans who mean the world to me.”

The off-plan market in May is still going strong, driven by high demand and the continuous release of new properties.

1. Total Property Sale Transactions

ALL (off-plan and ready): 11,757

Up 75.9% vs. May-2022

OFF-PLAN: 6,011

Up 83.6% vs. May-2022

OFF-PLAN Apartments: 4,824

Up 102.7% vs. May-2022

2. Total Sales Value

ALL (off-plan and ready): AED 34.2B

Up 87% vs. May-2022

OFF-PLAN: AED 15.6B

Up 98.2% vs. May-2022

OFF-PLAN Apartments: AED 11.8B

Which is 75% of all off-plan property sales value

3. Top 5 Areas in Demand for Off-Plan & Ready Property:

Dubai Marina

JVC

Business Bay

Downtown Dubai

Al Barshaa South Third

4. Average Rental Property Prices

Apartments: AED 52K

Up 11.7% vs. May 2022

Villas: AED 160K

Up 33.3% vs. May 2022

Commercial: AED 102.1K

Up 7.7% vs. May 2022

May proved once again that Dubai’s real estate market is more stable than ever. That’s why, as we enter the summer months, it will be fascinating to see how outbound and inbound travel trends will influence the Dubai real estate market.

*All data is provided by dxbinteract