According to a JLL analysis, the residential sector had the best performance among construction asset awards as the market for UAE building projects recovered in 2021. The industry is seeing the debut of numerous successful residential projects, with the trend predicted to last through 2022.
The construction industry is benefiting from the work-from-home trend brought on by the Covid-19 epidemic. In all-inclusive communities with a variety of recreational amenities like parks, gyms, and swimming pools as well as commercial establishments like restaurants, schools, and retail stores, home purchasers are increasingly seeking big and opulent living spaces.
The UAE government’s new visa policy, which enables property investors to get a Golden Visa when they purchase a house worth Dhs2m, has further strengthened the mood.
Famous real estate developers in the UAE are capitalising on the craze by unveiling a number of opulent mixed-use projects. The Dubai Islands (formerly known as Deira Islands) development by Nakheel has a master plan that incorporates a variety of housing, retail, and hotel options.
The Islands will be dotted with over 80 luxury and wellness resorts and boutique hotels, strengthening Dubai’s allure as a vacation destination. These resorts will be in addition to two square kilometres of parks, open spaces, and golf courses, as well as 20 kilometres of beaches.
The Dubai-based master developer also introduced Tilal Al Furjan earlier this year, a collection of 220 opulent homes that face out over its primary Al Furjan master community. Additionally, Nakheel started construction on the Murooj Al Furjan project, which sold out last year.
Al Shafar General Contracting will construct the 620 villas and townhouses in Murooj, which are scheduled for completion in 2024.
Over 3,000 residential units were delivered by Emaar Development, the build-to-sell property division of Dubai-based Emaar Properties, in the first half of this year. It also began more than a dozen other projects at the same time, such as Talia and Orania in The Valley, Elie Saab II and Bliss 2 in Arabian Ranches III, Greenview 3 in Emaar South, Park Field in Dubai Hills Estate, and Seagate in Rashid Yachts & Marina.
When the Talia and Orania developments are finished in 2025, there will be a total of 638 luxury houses added to Dubai’s real estate market. Emaar Development reported its highest-ever property sales of Dhs15.21 billion for H1 2022, supported by these new launches.
The developer entirely bought Dubai Creek Harbour from Dubai Holding, the titular property developer for the emirate, in August of this year. Emaar Properties increased its future development portfolio by 100 million square feet with its Dhs7.5 billion transaction.
Gulf Asia Contracting was chosen as the principal contractor for the Regalia project by Dubai’s Deyaar last year. This will be the developer’s tallest residential building to date, with a Dhs750 million price tag. After being introduced in July 2021, more than 85% of the units had been sold by September, generating Dhs900m. By 2024, the project is anticipated to be finished.
The first premium residential skyscraper in Dubai Silicon Oasis, Tria, which will have over one million square feet of built-up area and include studios, one-, two-, and three-bedroom apartments, duplexes, and penthouses, was also revealed by the developer in June of this year.
In addition to accelerating building, Dubai’s real estate market is being helped by demand for luxury homes. In August 2022, the emirate came in fourth on the Savills Prime Residential Index: World Cities.
Dubai, the only city outside the United States to crack the top five, saw significant performance in both premium residential capital values and rentals. In the first half of the year, prime prices increased by 4.7%, and robust capital growth is predicted to continue in the city for the rest of 2022.
“Over the past six quarters, there has been no slowdown in the demand for real estate in Dubai. Initiatives like the Golden Visa have made Dubai more enticing as a long-term residence for foreigners and investors, driving up demand in the real estate market. According to information from the Dubai Land Department, there were more than 66,000 sales in the last year alone, which is a 50% rise from the same time the year prior.
There is a critical requirement to regularly produce fresh inventory for the market in order to meet this rising demand and take into consideration the distinct tastes of end customers. According to Haider Ali Khan, CEO of Bayut and dubizzle and head of EMPG MENA, “the amount of off-plan sales has also expanded remarkably, growing by over 70% in the previous 12 months, demonstrating that there is a consistent interest in new developments.
Abu Dhabi is observing a significant demand for larger, more opulent villas as a result of Covid-19 lockdowns, high returns on investments, and a restricted supply. Leading developers in the city are starting a number of upscale residential buildings in response.
As of June 2022,ATGC Transport and General Contracting was chosen by Q Properties, a division of Q Holding in Abu Dhabi, to handle the early works construction on the first phase of the Dhs8 billion Reem Hills premium residential gated community development.
The 1.8 million square metre project, which is anchored on the eastern edge of Reem Island, is being managed by Abu Dhabi-based Royal Development Company and is scheduled to be finished in 2024.
Saadiyat Grove, a Dhs10 billion huge mixed-use project on Saadiyat Island, will start development later this year under the direction of the emirate’s Aldar Properties. The integrated community, which will cover 6.2 million square metres of premium land, will include roughly 3,000 residential units, the majority of which will be villas.
The Louvre Abu Dhabi Residences, a collection of 400 opulent apartments with views of both the renowned Louvre Abu Dhabi and the Arabian Gulf, is a new construction emerging on The Grove. In 2025, the property is anticipated to be transferred.
On Jubail Island, which is near to Saadiyat Island, a brand-new waterfront town called Ain Al Maha village is growing. It was introduced by the Jubail Island Investment Company (JIIC) in July of this year and will include 240 villas with views of the sea and mangroves when it is finished in 2025.
Prior to that, JIIC gave Al Dhafra Pipeline and Contracting Company a Dhs40 million contract for the construction of a new 66-berth marina in the Marfa Al Jubail neighbourhood, which is scheduled to be finished by the middle of 2024. In October, JIIC intends to introduce the Marfa Al Jubail neighbourhood.
At the conclusion of 2024, Bloom Living will launch its operations in Zayed City, offering an additional 257 villas for sale. The project’s Abu Dhabi-based developer, Bloom Holdings, is expecting to repeat the project’s Phase 1 success when Phase 2 goes live later this year.
Phase 1 of the project sold out within four hours of its market opening. Over 2.2 million square metres, the Dhs9 billion Bloom Living project will include 4,000 villas, townhouses, and flats.