Amid the ongoing demand for real estate in the United Arab Emirates, Dubai-listed Deyaar Development intends to introduce five new real estate projects valued at Dh8 billion ($2.17 billion) and hopes to sell Dh4 billion this year.

The company, which is majority owned by Dubai Islamic Bank, launched a similar number of projects last year and generated a total of Dh2.5 billion in revenue.

“We will be launching at least five projects this year, three of them in the first half and the second half again, two to three [projects],” Deyaar’s chief executive Saeed Al Qatami told The National.

Four projects will be built in Dubai, with one outside the city, he said, without specifying which emirate. Two of the new projects will be joint ventures funded with the company’s own equity. Deyaar also intends to borrow from banks as needed.

Last year, the developer made its debut in Abu Dhabi with the Dh800 million Rivage project on Al Reem Island, which sold out quickly due to high demand. It was launched in collaboration with Arady Properties.

The new projects will have 2,000 to 2,500 units, with prices varying according to location. The waterfront project units will cost between Dh2 million and Dh3 million on average, whereas units near Dubai’s Sheikh Mohammed bin Zayed Road and Dubai Production City will cost around Dh900,000.

“The demand is still there … I think a lot of segments are moving to UAE and Dubai, the high net worth individuals definitely as well as young generation,” Mr Al Qatami said.

People “can come, find a job, work hard, make money and have great lifestyle. So people are considering moving to find jobs … they want to start their own business here and the market has been phenomenal”.

Dubai’s property market continues to perform well in the face of government initiatives such as residency permits for retired and remote workers, the expansion of the 10-year golden visa program, and overall growth in the UAE’s economy due to diversification efforts.

According to the latest data provided by the Dubai Media Office, the emirate recorded real estate deals worth Dh761 billion last year, a 20% increase from 2023, with the total number of transactions increasing by 36% to 226,000.

It also set a record for the sale of homes worth more than $10 million last year, indicating that demand for luxury homes in the emirate remains strong despite an influx of the ultra-rich. Last year, the emirate saw 435 home sales valued at more than $10 million, up from 434 in 2023, with a total value of $7 billion, according to Knight Frank.

Deyaar sells homes to customers in India, Europe, and China, as well as to Emiratis.

It aims to generate Dh15 billion in revenue by 2028 or 2029, up from Dh1.5 billion last year due to stronger property sales, Mr Al Qatami added.

Rents and property prices to rise this year

Deyaar expects rents and property prices to rise further this year due to a supply shortage and increased demand.

“When you look at occupancy, it is almost close to 90 to 91 per cent in this market, and the rent has been increasing significantly over the past two to three years. That means there is not enough supply into the market, so we anticipate that the increase will continue this year, until further supplies come to the market or the population will be less.”

Rents are expected to stabilize in 2026 or 2027 as more supply enters the market and may fall in some areas, he added.

Last year, Dubai saw record-breaking increases in both sales and rental prices. According to a new report from property consultancy Cushman and Wakefield Core, citywide residential rents and sales prices increased by 16% and 18%, respectively, year over year.

“With no sign of slowing demand, 2025 will see further increases, despite more stock coming to market, particularly in the residential market,” the report said.

“Looking ahead to 2026/2027, major project completions, and regulatory adjustments will help address the imbalance, bringing more stability to the market and reinforcing Dubai’s position as a global real estate investment hub.”

According to the report, only 30,200 residential units were delivered last year, 11% lower than expected and 30% lower than in 2023.

Rental index ‘positive’ for market

Mr Al Qatami added that the Dubai government’s recent initiatives, such as a smart rental index and the ability of private property owners of all nationalities on Sheikh Zayed Road and the Al Jaddaf areas to convert their ownership to freehold status, are “positive” for the market.

“Rental index is very important for people to see where prices are and how you can be as fair as possible in terms of the relationship between the tenant and the landlords.”

Last month, the Dubai Land Department launched a new smart rental index for residential buildings, categorizing and rating them from one to five stars based on more than 60 criteria such as location, sustainability, building security, age, and amenities.

The company also owns one plot on Sheikh Zayed Road, which it intends to convert to freehold in the second half of the year following the introduction of the Dubai government’s new freehold initiative last month.

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Source: PropertyNews.ae

12th February, 2025