Estattor.com

Tag: Cavendish Maxwell

  • Abu Dhabi Property Market Records $1.16 Billion Weekly Sales

    Abu Dhabi Property Market Records $1.16 Billion Weekly Sales

    The emirate’s real estate sector maintained strong performance in early March, with a villa in Hidd Al Saadiyat selling for Dh88 million, marking the highest ready property transaction of the week, according to Abu Dhabi Real Estate Centre (Adrec) data released March 10, 2026.

    A duplex at Four Seasons Private Residences on Saadiyat Island fetched Dh68 million, representing the week’s top off-plan sale. Al Reem Island alone recorded 115 transactions valued at Dh189 million, underscoring sustained demand across multiple segments.

    The weekly figures reinforce Abu Dhabi’s growth trajectory following exceptional 2025 performance. Total transaction volumes reached approximately 22,400 deals last year, up 55% year-on-year, while aggregate sales value climbed to Dh73.2 billion.

    “Overall, Abu Dhabi’s residential market enters 2026 from a position of strength, supported by disciplined supply, strong investor confidence, robust demand drivers, and a supportive macroeconomic backdrop,” according to Cavendish Maxwell.

    Apartments dominated 2025 activity, accounting for 66.1% of transactions, while villas and townhouses recorded strong growth driven by families and high-net-worth individuals seeking larger living spaces.

    Residential stock expanded with approximately 7,400 units completed in 2025, bringing total supply to around 315,000 units. While 15,900 units are projected for 2026 completion, actual deliveries are likely to range between 6,500-9,000 units based on recent handover trends.

    Pricing momentum remained robust across both sales and rental markets. Apartment sales prices increased 15.1% year-on-year, while villa prices rose 12.2%. Rental growth showed apartment rates up 12.5% and villa rents climbing 5.5%, with elevated rental levels reinforcing sales demand as tenants increasingly view homeownership as a cost-effective long-term option.

    The market’s resilience mirrors trends across the UAE, where Dubai recorded sustained momentum despite geopolitical headwinds. Abu Dhabi’s strong fundamentals entering 2026 position the emirate for continued growth, with sales prices and rental rates expected to record further increases in the near term, though growth pace will vary across communities as new supply enters the market.

    The market is expected to remain resilient throughout 2026, supported by measured supply delivery that prevents near-term imbalances while maintaining pricing strength across prime communities.

  • Dubai Office Market Values Surge to Dh13.1 Billion in 2025

    Dubai Office Market Values Surge to Dh13.1 Billion in 2025

    Dubai’s office sales value surged by 102% compared to 2024, reaching Dh13.1 billion in 2025, marking the strongest performance in more than a decade, according to a report published Monday by Cavendish Maxwell. Transaction volumes increased by more than 53% to reach 4,600 deals last year.

    The top five areas by transactional volume were Business Bay with 1,230 transactions, Jumeirah Lakes Towers with 1,067, Barsha Heights with 267, Dubai Silicon Oasis with 147, and Dubai Investments Park with 92 transactions.

    Dubai’s business ecosystem expanded significantly in 2025, with the Dubai Chamber of Commerce registering 71,830 new member companies, pushing total active membership to 292,486—a 13.2% increase year-on-year.

    Off-Plan Segment Drives Market Momentum

    Off-plan activity jumped dramatically in 2025, with almost 700% growth in sales compared to 2024, fuelled by tight supply of ready premises and attractive prices and payment plans that enabled investors to enter the market. The off-plan segment accounted for 35% of all sales in 2025, with 1,400 transactions.

    Total off-plan sales values grew almost six-fold to Dh4.6 billion in 2025 compared to Dh700 million the year before.

    “With high quality office stock still severely constrained, buyers will be looking for viable entry points to the market through new off-plan premises,” said Vidhi Shah, head of commercial valuation at Cavendish Maxwell.

    Price Appreciation Driven by Demand

    Strong interest from both occupiers and investors drove Dubai’s office sales prices up 25.9% in 2025, reaching Dh1,951 per square foot. Rising rents and reduced landlord incentives prompted some tenants to buy rather than lease, while investors participated aggressively in the market.

    Office rental rates increased by 22.9% year-on-year across the city, as occupancy levels tightened and landlord incentives reduced. The heightened demand, coupled with limited inventory in prime locations, intensified competition and fuelled price appreciation.

    The property consultant expects similar patterns in 2026 as off-plan sales continue to see high demand, positioning Dubai’s commercial real estate sector for sustained growth amid the emirate’s expanding economic landscape. The market’s performance reflects broader property market strength as business activity accelerates across the emirate.

  • Dubai Residential Prices Rise 12.1% as Market Records 200,000 Transactions

    Dubai’s property sector concluded 2025 with landmark performance metrics, recording over 200,000 sales transactions—an 18.8% increase over 2024—as both off-plan and ready property segments outperformed previous years, according to a report by Cavendish Maxwell.

    Residential prices rose 12.1% during the year, down from 16.5% growth in 2024, while rental increases moderated to 11-12% by year-end compared to 13-15% earlier in the year, signaling a gradual market stabilization.

    Off-Plan Dominance Intensifies Market Concentration

    Off-plan transactions represented 72.9% of total real estate activity in Dubai, up from 69.3% in 2024, with transaction volumes reaching 146,400 units—a 25% year-on-year increase. This surge was driven by sustained developer confidence and robust investor appetite for future developments.

    Ready property sales recorded more modest but steady growth, reaching 54,400 transactions, up 5% compared to 2024, supported by stable demand from end-users and investors seeking immediate occupancy opportunities.

    The market’s increasing reliance on off-plan sales, however, creates concentration risks, making it potentially vulnerable to shifts in launch momentum and buyer sentiment.

    Supply Dynamics Show Persistent Delivery Gaps

    Approximately 40,400 residential units were completed in 2025, significantly below the initial projection of 82,600 units, resulting in a materialization rate of just 48.9%. Despite falling short of targets, actual completions were 16.4% higher than the 34,700 units delivered in 2024.

    Looking ahead, around 110,500 residential units are projected for delivery in 2026, though historical completion patterns suggest actual deliveries may range between 33,000 and 50,000 units, with some projects likely spilling into 2027.

    Apartments are expected to dominate upcoming completions, representing 84.3% of projected units through 2028. Key locations including Jumeirah Village Circle, Dubai South, Business Bay, Dubai Residence Complex and DAMAC Lagoons are forecast to contribute 30.7% of all projected deliveries during this period.

    Luxury Segment Surges 47% in Transaction Volumes

    Dubai’s luxury real estate segment recorded approximately 2,500 transactions in 2025, marking a 47.1% increase compared to the previous year. Off-plan sales led growth with a 52.6% year-on-year increase, accounting for 70.5% of all luxury transactions.

    The ultra-luxury segment exhibited robust performance with 302 transactions totaling Dh27.9 billion, representing increases of 31.9% in volume and 53.7% in value compared to 2024, highlighting growing preference among high-net-worth individuals for Dubai as both a residential and investment destination.

    Economic Fundamentals Remain Supportive

    Despite emerging supply pressures, broader macroeconomic fundamentals continue supporting the market. UAE GDP growth is projected at 5.2% in 2026, with Dubai expected to expand by 4.5%, supported by ongoing infrastructure investment, population growth, and sustained tourism momentum.

    Tourism is projected to maintain momentum with visitor volumes expected to surpass prior-year levels, while business activity indicators remain positive, providing continued support across housing, retail and commercial sectors.

    Market Enters Transition Phase

    Looking ahead, Dubai’s real estate market is expected to remain relatively stable in 2026, though entering a critical transition phase where supply pressures, moderating growth trajectories and potential external headwinds require heightened vigilance.

    While a sharp correction appears unlikely given Dubai’s solid macroeconomic foundation, diversified economy and sustained population growth, stakeholders should prepare for a more balanced environment characterized by moderate appreciation and heightened selectivity.

    The market’s performance contrasts with record results posted by developers in 2025, suggesting continued confidence in long-term fundamentals despite near-term moderation signals.