Month: December 2024

The latest JLL’s UAE Market Dynamics report, published on Wednesday, indicates that the UAE real estate market experienced significant growth in the third quarter of 2024, despite challenges in the global market.

In Dubai’s residential market, transactions of off-plan properties rose by 50.3% compared to the same quarter the previous year, leading to an overall increase in total sales transactions of 35.6% year-to-date. The residential sector in Abu Dhabi also showed strong performance — secondary market sales climbed by 44.3% in Q3, where apartments increased by 8.5% and villas by 8.1% from the previous year.

Rising sales numbers show the market’s strength and healthy economic support.

Off-Plan sales expand housing market

During the third quarter in Dubai, developers finished 7,400 residential units, and an additional 13,500 are anticipated in the fourth quarter. Rental apartment prices rose by 19.1%, while villa rental prices increased by 12.5%. This indicates a strong demand for quality housing in well-kept neighborhoods. Since demand is outpacing the available properties, renewals of leases climbed by 14.1%, representing 62.0% of all rental contracts. The upcoming housing supply in the fourth quarter should contribute to rent stabilization, encouraging developers to enhance existing communities and initiate new projects in peripheral areas.

As for Abu Dhabi, apartment rents increased by 9.3%, and villa prices increased by 3.9%. On the other hand, off-plan sales fell by 67.2%, resulting in a 40.8% decrease in total transactions compared to the prior year. It is expected that luxury properties will perform the best in the fourth quarter, attracting more buyers than those in the broader market. While there were few new home completions in the third quarter, around 3,500 units are set to be finished in the fourth quarter.

Hotel industry flourishes with tourism growth

Abu Dhabi’s hospitality market is performing well — 2.4 million guests arrived from January to May 2024, especially in popular areas such as Yas Island and Saadiyat Island. By September, key metrics indicated notable growth: occupancy rates rose by 7.1%, the average daily rate (ADR) reached AED 527 (an increase of 12.2%), and revenue per available room (RevPAR) climbed by 23.6%. The Abu Dhabi Tourism Strategy 2030 and upcoming events indicate this trend is likely to continue into the fourth quarter.

Dubai’s hotel industry is also experiencing growth, with RevPAR rising 2.7% compared to the previous year up to September, driven by increased tourism. New luxury developments such as Marsa Al Arab and Dubai Islands are underway, while existing hotels are adjusting their pricing strategies to attract guests who are becoming more cost-conscious. This has led to heightened competition among all types of hotels, compelling them to enhance their services. Despite global economic uncertainties, the sector remains robust and positioned for continued expansion.

Quality commercial spaces in high demand

In the commercial market of Abu Dhabi, the strong demand for high-quality office space, particularly Prime and Grade A types, led to an average rent increase of 10.8% in the third quarter of 2024 compared to the previous year. Total rental registrations surged by 44.4%, fueled by a 65.9% rise in new registrations and a 7.7% increase in renewals. With only 4.1% of the space remaining vacant and increasing demand from both existing and new businesses, growth is anticipated to persist into the fourth quarter when 70,100 square meters of new office space will be released.

In Dubai, the limited availability of Grade A office spaces is pushing rents higher, especially in the central business district (CBD), where only 5.2% of the space is vacant. This scarcity is prompting companies to rethink their expansion strategies and to renew the current leasing activity instead. The increases in rent varied by property classification: Prime office rents rose by 8.3%, Grade A rents increased by 14.7%, and Grade B rents went up by 15.3% compared to the previous year. Lease renewals expanded by 7.8% year-on-year, while the number of new leases saw a modest increase of 2.3%. A division is emerging within Dubai’s commercial market, where local and regional firms are more inclined to pay premium rents, in contrast to international corporations, which are adopting a more cautious approach.

F&B and innovation lead retail transformation

In the retail sector of the Dubai real estate market, significant growth in tourism and population positively impacted the performance in the third quarter, particularly for high-quality retail spaces. Rents in super-regional malls rose by 14.9% compared to the previous year due to strong demand. Prime locations are experiencing a rise in lease renewals, and in the food and beverage sector, landlords are showing a preference for well-established international brands. The fourth quarter is anticipated to introduce new retail experiences to accommodate evolving consumer needs.

During the third quarter, Abu Dhabi’s retail market experienced strong demand but faced a shortage of quality space. Food and beverage businesses were the main contributors to growth, and international brands were actively searching for prime locations. Rents increased by 3.8% from the previous year, with community malls witnessing the highest rise at 9.0%. Overall, rental registrations saw a 10.1% increase, driven by a significant 38.2% rise in new registrations. An additional 20,100 square meters of gross leasable area is projected to be added in the fourth quarter.

Institutional-grade assets define industrial growth

The industrial and logistics market in Dubai performed well in the third quarter, experiencing a rental registration increase of 7.9% and a 12.9% rise in rents as of September. Developers are cautious about new constructions without secured tenants despite the rapid occupancy of new properties. It is anticipated that high-quality properties will drive market growth in the future.

In the Abu Dhabi real estate market, there is significant demand in the industrial and logistics market, particularly for quality properties in well-established areas such as KEZ, which currently has a 92% occupancy rate. In the third quarter, rental registrations surged by 32.9%, while warehouse rents rose by 8.6%, reaching AED 380 per square meter compared to the previous year. New projects are underway to satisfy this increasing demand. The Abu Dhabi Industrial Strategy is fostering investment and promoting growth, especially in high-quality properties.

Taimur Khan, Head of Research MEA at JLL, said: “The UAE real estate market is demonstrating exceptional resilience, displaying strong growth across all sectors despite global challenges. Investors maintain confidence in both Dubai and Abu Dhabi, and this trend is likely to persist, bolstered by government initiatives and new world-class developments. There is a noticeable preference for high-quality properties that achieve higher prices. We anticipate continued growth through the fourth quarter of 2024 and beyond, creating opportunities for both local and international investors.”

Economic and geopolitical headwinds have shifted the real estate investment market, strengthening Dubai’s position as a “safe harbor” in uncertain times. The USA’s elections have also triggered doubts about how to save and multiply funds.

Investing in foreign markets, especially in Dubai, has become a popular choice among buyers thanks to the absence of taxes and other appealing conditions. But what does funding off-plan projects mean, and how does it work in reality? Here is what you need to know.

What is off-plan real estate?

Off-plan properties are buildings sold by property developers before completion and commission. This refers to purchasing real estate at the beginning of construction or earlier. So, you, as an investor, provide funding, often getting early-bird discounts, and then can resell the finished project for greater value.

Is it a profitable investment?

Off-plan investment benefits attract millions of purchasers to the extent that Dubai sets and breaks new records during Q2-Q3 2024. This is why buying pre-construction properties is advantageous:

• Low investment size. Off-plan projects cost much less than those in the completion stage. Developers often provide favorable conditions for early birds, so preparing significant sums is unnecessary.
  
  
• Skyrocketing capital appreciation potential. The secret of buying off-plan property in Dubai is selling it for higher prices. You can expect exponential gains if you choose popular areas like Downtown Dubai or Jumeirah Village Triangle.
  
  
• Favorable payment plans. Although off-plan real estate Dubai prices are considerable, developers often provide flexible payment options. The down payment requirement varies depending on the project but is usually 10-20%. However, the news announces a zero down payment option for some buildings.
  
  
• Diverse choice. As property completion dates are not waiting around the corner, you can choose any type of apartment with the desired view and location in any area. Later, when property registration is completed, your villa or apartment can be worth its weight in gold.

Off-plan vs ready property

Investment strategies consider funding the real estate market from different perspectives. Learn how investing in off-plan properties and finished projects varies.

Pricing

The advantages of off-plan property are offering low initial cost, flexible payment strategies, and increased future property value. Completed objects require a high initial sum, usually a full payment submission, and limited variations in value over time.

Usage

Construction timelines decide the use of off-plan property. This option suits long-term goals. The finished project is move-in ready, making it the best choice for those who want to live in the desired property immediately.

Customization

Investing in off-plan property is investing in future technologies, as new approaches might emerge at completion. With ready objects, you get what is currently modern and popular.

Returns

The low initial cost and high gains of off-plan real estate purchases offer significant investment returns. However, this strategy requires time and a plan for mitigating off-plan property risks. Immediately renting finished projects results in less stable income.

Is it risky to invest in off-plan property?

Investment risks are always present whether you buy properties in Dubai or any other reputable market. Usually, these risks put funding and highly rewarding strategies in danger:

• Long delays
• Failure to finish the project
• Unfavorable market fluctuations
• Changes in project scope

However, legal considerations in Dubai are targeted and strictly monitored. For instance, the Real Estate Regulatory Agency (RERA) inspects developers and instructs them to deposit funds into escrow accounts.

Also, Dubai’s market is considerably stable because of its solid economy and business-supporting strategies.

How off-plan property works: tips before investment

If you are approaching Dubai’s off-plan property investment idea, follow these recommendations to mitigate risks and secure a high future property valuation.

1. Don’t spare time to research the developer’s history, reputation on the market, and previously completed projects.
2. Please thoroughly review the Sales and Purchase Agreement (SPA) to avoid future misunderstandings and penalties.
3. Double-check if the developer has a valid escrow account.
4. Aim to invest in property in popular high-end locations.

Are you ready to kick off 2025 with a profitable investment?

Dubai has an immense pool of investment options. And having an experienced developer by your side makes you twice a winner. Choose a reputable Object 1 development company to see your investments in Dubai real estate growing and multiplying!

Investors often face a critical decision: to opt for the convenience and immediacy of a ready-to-move-in property or postpone the happy moment while waiting for an off-plan project to be completed. This becomes a daunting task in Dubai, an outstanding destination that supports global wealth migration.

When researching market dynamics, the number of units sold under off-plan projects outperformed the demand for completed properties during Q1 2024. Both options have advantages and disadvantages, so learn how they differ and choose the best investment strategy.

Secondary properties Dubai

Affluent purchasers drive Dubai’s real estate market demand. Buying secondary property for yourself or a rental business is a perfect option for those considering a stable income. Let’s examine the idea of investing in ready-to-move-in properties in Dubai.

Pros of purchasing completed projects

These are the advantages of secondary market in Dubai:

• Immediate possession of the project with the ability to move in immediately.
• Developed locations and infrastructure.
• Fewer risks of having the project unfinished or experiencing delayed handover dates.
• Higher chances of getting a mortgage.
• Ability to have immediate rental income.
• Transparent property valuation.

The secondary market lures buyers with immediate property usage and investment returns. This choice suits investors who want to mitigate risks and earn rental yields.

Cons of purchasing finished properties

Even though investment risks are lower when buying secondary units, this option also has its drawbacks:

• High initial costs, especially for the premium real estate market.
• Limited customization abilities.
• Competition with more progressive developers.
• The risk of depreciation.
• A saturated market with a lot of resale properties.
• Additional costs for transfer fees and real estate agents commission.

So, secondary properties in Dubai oblige you to pay more upfront and provide little room for customization. But what if you have an extraordinary idea in mind? Then, off-plan market trends will interest you.

Off-plan properties Dubai

The global appeal of the Dubai off-plan real estate market attracts investors from around the globe, and that is not surprising, as you will learn about its advantages.

Benefits of off-plan properties

Buying property during the construction stage or before comes with such pros:

• Lower entry costs typically range between 10-20% for a down payment.
• Unique customization features and immediate appliances of emerging technologies.
• Flexible payment plans and the ability to pay in installments.
• Generous discounts for early birds.
• Access to highly desired locations.
• Ability to apply for the UAE Golden Visa program.

In the case of off-plan projects, you can get a deal with favorable property prices in Dubai, wait until the property handover, and get a high capital appreciation and, thus, return on investment (ROI).

Drawbacks of off-plan properties

This option also comes with off-plan property risks, which are the following:

• Construction delays or even project cancellations.
• Market fluctuations.
• Inability to use the property right away.
• Long waiting period for returns.
• Financial risks.
• Uncertain resale value.

Buyers of off-plan property should be aware of the legal considerations of such an investment. Luckily, in Dubai, customers are protected more than anywhere else. Below, you will find why.

Why Dubai is a favorable market for off-plan investors     

Off-plan vs secondary market always competes. While finished projects pose minimum buyer risks, off-plan units require proper evaluation and research before funding. However, Dubai has covered that concern, and as a customer, you get complete buyer protection according to local laws and practices:

1. According to the law issued by the Dubai Land Department (DLD), developers are required to adhere to rigorous financial and operational standards, which gives investors solid property warranties.
   
   
2. For off-plan projects, DLD has a dedicated department, the Real Estate Regulatory Agency (RERA), which controls off-plan deals and intervenes in customer litigation.
   
   
3. If the property registration and handover are delayed or canceled, buyers can receive a refund according to local law. RERA and DLD will handle this procedure.
   
   
4. All transactions for off-plan projects are transferred through DLD’s Oqood system, which promotes transparency and officially confirms buyers’ investments. 
   
   
5. In Dubai, developers must uncover the full price upfront without any hidden or additional costs.
   
   
6. The Dubai real estate market liquidity is high, meaning you will always find purchasers for your finished property.

7. Mortgage availability allows investors to have favorable conditions, whether aiming for off-plan property or finished projects.

Secure yourself a wealthy future and invest in off-plan properties in Dubai!

If your goal is to multiply your funds, the obvious choice is to buy off-plan property. Contact Object 1 to learn what projects will bring you success and diversify your investor portfolio!

Many people desire to live in Dubai. However, due to local restrictions, buying real estate in Dubai without a down payment is unlikely to be feasible. In this article, we will reveal the major points of property ownership laws, the legal aspects of buying property, and how to make a purchase without a down payment.

Dubai real estate market at a glance

The UAE real estate market is quite diversified, introducing both luxurious and affordable samples of property in Dubai and similar well-known UAE destinations. Object 1 operates in the market for over 10 years already, providing immaculate housing opportunities for both residents and expats.

It is good to note, by the way, that not all non-residents want to live in Dubai by purchasing an apartment there. The property acquisition in this emirate is also a way to invest money in real estate with the following opportunities of resale and providing it for rent. If this sounds reasonable, you can always find suitable offers in the portfolio of the Object 1 development company. Let us know about your preferences!

The opportunities seem limitless. The real estate market is full of offers to buy different apartments, land plots, villas, etc. The variety of options is a wide avenue for implementing the most effective real estate investment strategies. One major one is to reduce or even waive a down payment when buying a property in Dubai. You may wonder about the purpose of such a payment. We will explain it briefly.

The down payment: purpose and historical perspective

A down payment is a specific amount paid when purchasing a property. Most often, it is a percentage of the property’s total price. If you agree to buy, you must pay this amount in advance. The purpose of this payment is to secure the lender. However, in return, the customer also gets a sense of ownership at the start.

According to the local rules, the property purchase process in Dubai requires these down payments:

• Locals – 15%
• Expats – 20%

What is important is that these requirements have been even relaxed. Buying property in Dubai with no deposit was possible a long time ago. In 2008, when the local market experienced a severe crisis, property prices dropped significantly, making developers struggle to survive.

In 2012, the Central Bank announced that expats had to pay 50% upfront for their first purchase of property in Dubai and 40% for the following purchases before taking mortgage loans. These requirements were relaxed several times, with the latter case in 2020. During the COVID-19 pandemic, the local authorities decided to increase the demand for property in this way. As you may guess, the main purpose of the down payment for all of the mortgage options in Dubai is to stabilize the local real estate market.

Advantages and disadvantages of the down payment

Zero deposit in property in Dubai seems to be an attractive perspective since it allows you to save a considerable part of your money. Beyond this advantage – that lies on the surface – there are actually many pitfalls.

If there is no initial payment for a property in Dubai, the next financial burden is much bigger. The down payment secures not only developers but also property owners. The most common case is delaying or failing to make the mortgage payments. Without a financial buffer—that is what the down payment is—breaking the schedule of fees may result in significant financial distress and limit the room for refinancing.

If you are looking for options without a down payment, be prepared for the fact that you will unlikely get the best or at least above the average real estate. Such superior spots as Jumeirah Village Circle may not be available at all without at least a minimal down payment.

You may also face higher interest rates or extra fees since property investment in Dubai with no deposit is deemed to be far riskier compared to the traditional one with the advance fee. Unfortunately, in some cases, getting bank loans in Dubai without a down payment may not be possible at all.

Benefits of buying a property from developers

Buying a property through various developer financing plans is beneficial for many reasons:

• Developers are focused on finding solutions that are helpful enough to attract as many buyers as possible. Dubai property financing options include, among others, home loans for foreigners, post-handover payment plans, interest-free installments, etc. It is even possible to buy property in Dubai without a down payment in some instances. Most often, the advance payment is significantly decreased.

• Property upgrades are possible. Developers may not only help with financing for expats to buy a property in Dubai. They also provide sufficient follow-up support or additional perks, like integrated furniture or kitchen appliances.

• No service charges for a specific amount of time make the lives of property owners much more manageable.

Flexible payment options have a positive impact on the lives of expats. A minimum or zero down payment for a property in Dubai can significantly relax the situation. Object 1 development company ensures all of the listed benefits. They vary depending on the chosen apartment.

Our buildings are organically integrated into the urban environment while apartments ensure the sound balance between life, work, and inspiration. The following ways of reducing your down payment can make these immaculate housing options even more affordable.

Minimal or no deposit property purchase Dubai: tested ways

It’s proven – the Dubai property purchase without a down payment or its legal optimization is possible by following one of these ways:

1. Negotiate a lower down payment. Although completely avoiding the down payment may be challenging, especially without sacrificing the quality of the desired property, it is not impossible. In any case, it is worth trying to negotiate a decrease in the advance payment amount. Some developers offer such special offers.

2. Obtain a personal loan. Please note – the terms of Islamic [1] financing in the UAE may have specific requirements. Even if it is possible to take both home and personal loans, it may not be allowed to be done within the same bank. Other restrictions may be applied as well. If you are considering this option, try to research as much information on the matter as possible in advance.

3. Developer’s payment plans. In the first turn, the developers are interested in attracting as many customers as possible by implementing various programs for off-plan properties. Most often, the customers are allowed to pay the full amount of the property in installments over a longer period of time. Such an approach is helpful in their financial management. Another example is the reduced interest rate.

4. Lease-to-own options are also frequently referred to as rent-to-own schemes. Under such terms, a stipulated part of the rent payments is redirected to acquiring the equity in the property, repaying its value in full. This approach’s flexibility makes it very attractive for many families, especially those who can’t afford to pay the full price for the property or make the advance payment.

5. Partnerships. If you are considering investing in property in Dubai, it may be reasonable to consider partnerships or joint ventures with locals. This method is very effective because it avoids the requirement of paying any amount in advance and allows the financial burden to be divided among different parties.

You may also see many different options available in the market. In any case, make sure you understand their terms and conditions clearly. If this is necessary, consult with your lawyer before signing any documents and transferring your funds. Cooperate with the reliable developers solely.

Eligibility criteria

Minimal or no down payment mortgage in Dubai can be suggested if you meet the following criteria:

• Be 21 years old at minimum
• Have a good credit score that complies with the credit requirements in UAE
• Prove you have sufficient income to cover the payments under the mortgage

In this course, residency status doesn’t matter – both residents and non-residents are eligible to buy property in the UAE.

Bottom line

Buying in Dubai real estate with a zero down payment or minimizing its amount is possible. However, these options are not available for the best samples of real estate. If you are looking for a decent property for living or investment, draw attention to moderate Dubai property payment plans offered by reputable developers. They envisage quite flexible financing solutions for expats allowing them to find the balance between the protection of the market and the interests of investors.

The 1WOOD project is coming to life! Our construction team is right on track, progressing steadily as we create a space where sustainability, style, and functionality harmonize seamlessly. By using cutting-edge technology and carefully selected natural materials, we’re crafting a building that’s not only environmentally conscious but also built to last. Stay tuned as 1WOOD takes shape, a true testament to modern, eco-friendly design!

The OZONE1 project is progressing beautifully and on schedule! We’re building more than just a structure, we’re crafting a modern, versatile space where innovative design meets everyday comfort. With state-of-the-art technology and premium materials, we’re focused on durability and practicality without compromising on style. Follow along as OZONE1 evolves into a future-forward space for all to enjoy!

Dubai real estate developer Object 1 is closing the year on a high note, celebrating extraordinary growth in 2024. The company reported a 913% increase in sales value and a staggering 1,059% surge in sales volume compared to the previous year. These achievements underscore Object 1’s rising prominence in Dubai’s dynamic real estate market.

Unprecedented Milestones in Two Years
In just two years, Object 1 has launched nine high-quality projects and sold over 860 units, significantly expanding its market share in key areas across Dubai. The developer’s portfolio, encompassing both residential and mixed-use developments, continues to attract robust demand from local and international buyers.

With an unwavering commitment to quality and innovation, Object 1 is set to unveil new projects in sought-after locations, including:

• Jumeirah Village Triangle
• Al Furjan
• Dubai Land Residence Complex
• Dubai Islands

Driving Dubai’s thriving real estate sector

Tatiana Tonu, Managing Director at Object 1, shared her perspective on the market’s performance:
“The UAE’s real estate market has been a cornerstone of growth this year, driven by the country’s robust economic recovery, forward-thinking government policies, and rising demand for premium properties. Dubai alone has achieved remarkable milestones, with transactions reaching a combined value of AED 625 billion ($170.2 billion) in 2024.”

She added, “As a company deeply committed to quality, innovation, and customer satisfaction, Object 1 is proud to contribute to this flourishing sector with future-proof developments. Our upcoming projects will reflect the growing preference for smart home technologies, sustainable building features, and integrated community living, further strengthening our presence and redefining urban living standards.”

Appealing to a global audience

Object 1’s flexible payment plans and attractive financing options have been pivotal in driving interest from a diverse customer base. The developer has seen strong demand from investors in countries such as:

• Turkey
• Iran
• France
• India
• Germany
• China

Strategic partnerships with leading architects, sustainability-focused technology providers, and investment funds have further fueled Object 1’s growth. By prioritizing innovation and adaptability, the company continues to set new benchmarks for success in Dubai’s thriving real estate landscape.

As Object 1 looks to the future, it remains poised to deliver groundbreaking developments that cater to evolving market trends, solidifying its position as a key player in the region.

The grand opening of Object 1’s new Sales Gallery on December 13th 2024  was nothing short of extraordinary! The event was met with overwhelming positive feedback from esteemed guests and colleagues, marking another high point in Object 1’s journey in the Dubai real estate market.

A special shoutout goes to our unstoppable team and incredible partners whose dedication and expertise made this vision a reality. Together, we didn’t just open a new Sales Gallery — we amazed, inspired, and set new standards for excellence.

In just two years, Object 1 has established itself as a force to be reckoned with in the competitive Dubai real estate market. This event is a testament to the company’s relentless drive, bold vision, and commitment to innovation.

And this is just the beginning. Stay tuned as Object 1 continues to redefine the real estate landscape, one groundbreaking achievement at a time!