Competition is heating up in Dubai's property market as new developers enter the scene to launch projects amid surging demand from buyers.
Amaal – founded by Abdulla Lahej, former group chief executive of Emaar – made its debut in the Dubai market this year, alongside Kasco Developments, Acube Developments, Source of Fate and PO B1 Properties.
“Of the 40 new developers that have come to market so far this year, approximately 50 per cent are foreign entities entering the Dubai market for the first time," says Zhann Jochinke, chief operating officer at Cavendish Maxwell’s Property Monitor. “Competition is fierce. So far this year, 142 developers have launched projects, whereas, for the whole of 2023, the figure was 125."
Amaal unveiled a Dh1.5 billion ($408 million) project named Amaal 8 in Mohammed bin Rashid City. The project will have 512 units and the first phase is already sold out, with the development set to be completed by the end of 2028, says Mr Lahej. "We have a variety of customers, not only from this region, from all around the world."
Approximately 50 per cent are foreign entities entering the Dubai market for the first time
Zhann Jochinke,
chief operating officer, Property Monitor
The company plans to hold road shows in China, Australia and the UK to attract more customers. New developers entering the market "fosters a healthy competitive environment, which benefits everyone involved", he says. "It's good not to make it only for three or two developers, it becomes a monopoly."
Dubai-based Source of Fate, which is behind a Dh500 million project in Ras Al Khaimah, is to launch Dh10 billion worth of projects in the next 12 months. The new developments to be built in Ras Al Khaimah and Dubai, with the company fully funded, general manager Majid Hsiung says.
Meanwhile, PO B1 Properties, the new real estate development division of Saif Al Ghurair Real Estate Group, announced a Dh206 million project in Dubai Silicon Oasis that is set to be completed in the second quarter of 2027. The project, named Serenova, spans 7,850 square metres of land and comprises 222 apartments.
Acube Developments, meanwhile, has plans to launch three or four projects worth Dh1.5 billion in 2025, in Dubai and Ras Al Khaimah.
Kasco Developments, part of the family-owned Kasco Group with a diversified portfolio, also unveiled a Dh500 million project in Business Bay. “Despite the increased competition in the market, there is still plenty of opportunity for new companies to establish themselves,” says Mustafa Al Kaissi, chairman of Kasco Developments.
The focus should be on “developing unique and innovative products that meet the specific needs and preferences of consumers", he adds. "This approach allows new entrants to carve out their own niche and succeed even in a crowded marketplace.”
Room for more
The entry of the new developers comes as the UAE property market continues to perform strongly on the back of new initiatives from the government, such as residency permits for retired and remote workers, and overall growth in the economy.
During the third quarter, average prices in the Dubai residential market rose by about 20 per cent from the previous year, with a 19 per cent increase in average apartment prices and a 23 per cent rise in average villa prices, a report from CBRE shows.
In the nine months to September 2024, the total number of residential transactions in Dubai topped 125,000, up more than 36 per cent compared with the same period in 2023, while the total value of deals rose 34 per cent annually to Dh314 billion, the report said.
Demand for real estate is at record levels. Cavendish Maxwell’s latest Property Monitor report shows that more than 20,000 property transactions took place in October – the highest monthly figure on record – with 73 per cent being off-plan units.
The market “definitely appears to be there” for new entities to enter as “we keep hitting kind of new records in terms of sales volume and sales values”, says Matthew Green, head of research – Mena at CBRE. "From a risk perspective, it's a higher point on the risk curve given we're four years already into an up cycle. But looking at the transaction volumes and values, demand is still very much kind of sustained and the Dubai success story only really continues to progress."
Luxury pull
One segment specifically seeing a boom is luxury residential property. In the third quarter, the prime villa market in Dubai recorded capital gains of 38.1 per cent annually, while premium apartment values rose 24.7 per cent during the period, a report from ValuStrat says.
Demand is coming from ultra-high-net-worth people moving to Dubai. Global high-net-worth individuals are expected to spend $4.4 billion on Dubai property this year, up 76 per cent compared with last year, Knight Frank said in a report this year.
Dubai's luxury home market hit record levels in 2023, as sales of homes worth more than $10 million nearly doubled to $7.6 billion, performing better than London and New York, Knight Frank said a separate report.
"Although the Dubai real estate market is seeing sustained growth and expansion like never before, units are still largely being absorbed in a timely fashion," Mr Jochinke says. "Large and well-known developers are selling most of their inventory on launch day or in the days and weeks that follow. Newer, lesser-known developers take longer to sell but, nonetheless, are selling."
Aldar Properties this year said it sold the first two phases of its Athlon project in Dubai within 48 hours of launch, generating Dh4.1 billion in sales for the company.
In September, Samana Developers sold its two projects Samana Ocean Pearl 1 and Samana Ocean Pearl 2 on Dubai Islands, within two hours of its launch.
Protection for investors
From the regulatory side, the requirements are more stringent. Developers must meet certain requirements before they register a project and launch it for sale. One key requirement relates to project finance and providing a level of protection to investors.
"Before off-plan sales can begin, developers must provide a minimum 30 per cent guarantee, either by completing the equivalent of 30 per cent of construction, providing a bank guarantee of 30 per cent of the construction, or depositing the equivalent of 30 per cent cash in the Rera [Real Estate Regulatory Authority] escrow account," Mr Jochinke says.
Looking ahead, Mr Lahej expects investor demand to continue, with sales momentum continuing into the next year. "Seeing the ups and downs of this whole experience of real estate from 2008 and later on in 2012, Dubai always comes on top," he adds. "We are hoping this kind of momentum continues and we see all the positive signs of it so far. I think it's going to be there for some time."
MATCH RESULT
Liverpool 4 Brighton and Hove Albion 0
Liverpool: Salah (26'), Lovren (40'), Solanke (53'), Robertson (85')
Company Profile
Founder: Omar Onsi
Launched: 2018
Employees: 35
Financing stage: Seed round ($12 million)
Investors: B&Y, Phoenician Funds, M1 Group, Shorooq Partners
More from Rashmee Roshan Lall
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
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In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
Sholto Byrnes on Myanmar politics
Dubai works towards better air quality by 2021
Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.
The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.
These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.
“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.
“We’re in a good position except for the cases that are out of our hands, such as sandstorms.
“Sandstorms are our main concern because the UAE is just a receiver.
“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”
Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.
There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.
“There are 25 stations in total,” Mr Al Daraji said.
“We added new technology and equipment used for the first time for the detection of heavy metals.
“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”
La Mer lowdown
La Mer beach is open from 10am until midnight, daily, and is located in Jumeirah 1, well after Kite Beach. Some restaurants, like Cupagahwa, are open from 8am for breakfast; most others start at noon. At the time of writing, we noticed that signs for Vicolo, an Italian eatery, and Kaftan, a Turkish restaurant, indicated that these two restaurants will be open soon, most likely this month. Parking is available, as well as a Dh100 all-day valet option or a Dh50 valet service if you’re just stopping by for a few hours.
Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
Three ways to limit your social media use
Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.
1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.
2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information.
3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
MATCH INFO
Manchester United 6 (McTominay 2', 3'; Fernandes 20', 70' pen; Lindelof 37'; James 65')
Leeds United 2 (Cooper 41'; Dallas 73')
Man of the match: Scott McTominay (Manchester United)
LA LIGA FIXTURES
Friday (UAE kick-off times)
Levante v Real Mallorca (12am)
Leganes v Barcelona (4pm)
Real Betis v Valencia (7pm)
Granada v Atletico Madrid (9.30pm)
Sunday
Real Madrid v Real Sociedad (12am)
Espanyol v Getafe (3pm)
Osasuna v Athletic Bilbao (5pm)
Eibar v Alaves (7pm)
Villarreal v Celta Vigo (9.30pm)
Monday
Real Valladolid v Sevilla (12am)
The specs: 2018 Volkswagen Teramont
Price, base / as tested Dh137,000 / Dh189,950
Engine 3.6-litre V6
Gearbox Eight-speed automatic
Power 280hp @ 6,200rpm
Torque 360Nm @ 2,750rpm
Fuel economy, combined 11.7L / 100km
ICC Awards for 2021
MEN
Cricketer of the Year – Shaheen Afridi (Pakistan)
T20 Cricketer of the Year – Mohammad Rizwan (Pakistan)
ODI Cricketer of the Year – Babar Azam (Pakistan)
Test Cricketer of the Year – Joe Root (England)
WOMEN
Cricketer of the Year – Smriti Mandhana (India)
ODI Cricketer of the Year – Lizelle Lee (South Africa)
T20 Cricketer of the Year – Tammy Beaumont (England)
The%20specs
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