Dubai-listed <a href="https://www.thenationalnews.com/business/property/2024/11/07/deyaar-plans-to-launch-dh15bn-project-in-dubai-by-end-of-year/" target="_blank">Deyaar Development</a> plans to launch five new property projects worth Dh8 billion ($2.17 billion) and is targeting Dh4 billion in sales this year amid<a href="https://www.thenationalnews.com/business/2025/02/03/dubai-10m-homes/" target="_blank"> continued demand for property in the UAE</a>. The company, majority owned by Dubai Islamic Bank, also launched a similar number of projects last year and achieved total sales of Dh2.5 billion. “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 <i>The National</i>. Four projects will be built in Dubai, while one project will be outside the city, he said, without disclosing which emirate it would be. Two of the new projects will be joint ventures and will be funded through its own equity. Deyaar also plans to borrow from banks if needed. Last year, the developer made its debut in Abu Dhabi with the launch of the Dh800 million Rivage project in Al Reem Island, which was fully sold to buyers amid strong demand. It was launched in partnership with Arady Properties. The new projects will have 2,000 to 2,500 units and prices will vary according to the location. The waterfront project units will cost between Dh2 million to Dh3 million on average, while units around Dubai's Sheikh Mohammed bin Zayed Road and Dubai Production City will average 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 strongly amid government initiatives such as residency permits for retired and remote workers as well as the expansion of the 10-year golden visa programme and overall growth in the UAE’s economy on diversification efforts. The emirate recorded real estate deals worth Dh761 billion last year, up 20 per cent compared to 2023, with the total number of transactions for the year increasing by 36 per cent to reach 226,000, according to the latest data provided by the Dubai Media Office. <a href="https://www.thenationalnews.com/business/property/2024/11/26/the-ten-most-expensive-homes-sold-in-dubai/" target="_blank">It also achieved a record in the sale of homes </a>valued at more than $10 million last year as the demand for luxury homes remains strong in the emirate amid <a href="https://www.thenationalnews.com/business/money/2023/12/14/what-does-it-cost-to-live-a-millionaire-life-in-the-uae/" target="_blank">an influx of ultra rich.</a> The emirate recorded 435 home sales valued above $10 million last year, up from 434 home sales in 2023 in the same category, with the total value of deals reaching $7 billion, Knight Frank said this month. Deyaar is selling homes to customers from India, Europe and China, with Emiratis also among its clients. It aims to reach Dh15 billion in revenue by 2028 or 2029 from Dh1.5 billion recorded last year amid stronger property sales, Mr Al Qatami added. Deyaar expects rents as well as property prices to continue rising this year amid a supply shortage and higher 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 stabilise in 2026 or 2027 when more supply comes to the market and could reduce in certain locations, he added. Dubai witnessed a record-breaking sales price and rental increases last year. Citywide residential rents and sales prices increased by 16 per cent and 18 per cent year-on-year, respectively, according to a new report from property consultancy Cushman and Wakefield Core. “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.” Just 30,200 residential units were handed over last year, 11 per cent down on the forecast and 30 per cent lower than 2023, according to the report. A series of recent initiatives<b> </b>unveiled by the Dubai government, including a smart rental index and allowing private property owners of all nationalities on Sheikh Zayed Road and the Al Jaddaf areas to convert their ownership to freehold status is “positive” for the market, Mr Al Qatami added. “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 <a href="https://www.thenationalnews.com/business/property/2024/10/30/property-speculation-remains-within-desirable-limits-of-20-says-dubai-land-department/" target="_blank">Dubai Land Department</a> launched a new smart rental index with a classification and a rating system from one to five stars for residential buildings, based on more than 60 criteria including its location, sustainability factors, building security, age and amenities. The company also has one plot on Sheikh Zayed Road, which it plans to convert into freehold in the second half of the year following the introduction of the <a href="https://www.thenationalnews.com/business/property/2025/01/19/dubai-allows-property-owners-on-sheikh-zayed-road-and-jaddaf-to-convert-to-freehold/" target="_blank">new freehold initiative </a>from Dubai government last month.
