Markets

Markets

In Dubai, the sales of homes priced at $10 million and above experienced a significant increase, nearing 100% throughout the year 2023.

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In Dubai, the luxury real estate market experienced a surge in sales of homes priced at $10 million and above, witnessing an impressive increase of over 92% in 2023, totaling 431 transactions. The year marked several record-breaking achievements in this high-end property segment, and the trend is expected to continue into 2024. Faisal Durrani, Partner and Head of Research for MENA at Knight Frank, emphasized Dubai’s position as the world’s most active $10 million-plus homes market. During the final quarter of 2023, the value of homes sold in this category increased by 28% year-on-year, highlighting the robust demand for the city’s most luxurious residences. Interestingly, city-wide listings above $10 million decreased by 8.9% in the same period, underscoring the scarcity of such properties. In the first nine months of 2023, Dubai outperformed its closest competitor, New York, by selling more than twice as many homes priced over $10 million. Dubai recorded 323 deals compared to New York’s 159. Developers responded to this demand surge by launching projects, including high-rises and communities, to cater to discerning buyers willing to make substantial investments. The international ultra-high-net-worth demand not only impacted the $10 million-plus market but also supercharged the $25 million-plus property market. The number of homes trading at this ultra-luxury level doubled in 2023 to 56 deals, totaling $2.3 billion. Palm Jumeirah emerged as the preferred choice for buyers in the $10 million-plus segment, with Jumeira Bay Island securing the second spot. Despite Palm Jumeirah having 9.5% fewer homes for sale in 2023 compared to 2022, its central location in New Dubai and prestigious ‘Blue Flag’ status added to its appeal among elite buyers seeking immediate access to the vibrant lifestyle offered by Dubai.

Markets

“Indian Rupee Depreciates Against UAE Dirham, Ending Nine-Day Upward Trend”

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The Indian rupee, after a continuous nine-day ascent, experienced a setback by depreciating 11 paise to reach 82.97 against the US dollar (23.05 against the UAE dirham) in early trading on Tuesday. This shift was attributed to the strength of the US dollar against major global currencies and subdued sentiment in the equity markets. Despite some foreign fund inflows providing support, the Indian currency faced challenges from volatile crude oil prices. The rupee opened weaker at 82.95 and extended its decline to 82.97 against the US dollar in the initial trade, reflecting a loss of 11 paise from its previous close.

Markets

“UAE Gold Prices Witness Further Decline, Decreasing by Dh3 per Gram in the Last 24 Hours: Is it the Right Time to Buy?”

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“UAE Gold Prices Experience Decline, Dropping by One-and-a-Half Dirham: Global Rates Influence Precious Metal’s Value Gold prices in the UAE witnessed a decrease of one-and-a-half dirham on Wednesday morning, aligning with the global rate drop. The 24K variant of the precious metal opened at Dh245.25 per gram, compared to the previous night’s closing rate of Dh246.75 per gram. Similarly, 22K, 21K, and 18K variants were also trading lower at Dh227.0, Dh219.75, and Dh188.5 per gram, respectively. The 24K variant of gold has seen a decline of Dh3 per gram since Tuesday morning when it was trading at Dh248.25 per gram, attributed to the continued strengthening of the US dollar. Globally, spot gold dropped by 0.4 percent to $2,020.24 per ounce at 9:22 am UAE time, marking its most substantial single-day decline since December 4, 2023. Federal Reserve governor Christopher Waller emphasized on Tuesday that, while inflation was nearing the central bank’s 2 percent goal, the Fed should not hastily lower interest rates until sustained lower inflation becomes evident. Analysts, including Alex Kuptsikevich, senior market analyst at FxPro, attribute the decline in gold prices to the impact of a strengthening dollar following overly optimistic expectations for an interest rate easing cycle set by policymakers in Davos. Kuptsikevich noted that the technical pullback behind the dollar’s strength comes after markets exceeded expectations, anticipating rate cuts at every Fed meeting since March. He added that further dollar strengthening could significantly increase pressure on gold, diminishing its attractiveness against the backdrop of high yields on US bonds supported by the growth of the US currency.”

Banking & insurance, Blue Chips, Chambers, Companies, Markets, UAE

“Remarkable Surge: Pakistan Achieves 3,300+ Company Registrations in Dubai Chamber of Commerce for 2023”

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“Pakistan Sees Surge in Business Presence: Over 3,300 Companies Join Dubai Chamber of Commerce in Q1 2023” In the first quarter of 2023, more than 3,300 Pakistani companies joined the Dubai Chamber of Commerce (DCC), according to the country’s top diplomat in the United Arab Emirates (UAE). This development highlights the dynamic nature of Pakistani businesses and the growing appeal of the UAE as an investment destination. The DCC reported a total of 30,146 new companies joining in the first quarter, with India leading with 6,717 companies, followed by the UAE with 4,445 firms. Pakistan secured the third position with 3,395 new business entities, marking a significant 59 percent increase from the same period last year. The overall count of Pakistani companies with DCC membership has now reached 40,315. Mohammad Ali Rashed Lootah, the DCC president and CEO, emphasized the diversity of nationalities among the new companies, highlighting Dubai’s vibrant business environment. Ambassador Faisal Niaz Tirmizi praised this positive development, emphasizing the resilience and entrepreneurial potential of the Pakistani business community and diaspora. The ambassador highlighted the strong economic fundamentals of the UAE’s economy, with a focus on diversification and global economic partnerships. He emphasized Dubai’s strategic position for Pakistani businesses to engage with other Gulf states and the Middle East. Tirmizi noted the significant increase in the number of Pakistani expatriates in the UAE, spanning various sectors. The embassy played a crucial role in facilitating business by maintaining active communication with the DCC and sharing opportunities with Pakistani chambers and the diaspora. Trade linkages between Pakistan and the UAE have expanded, leading to Pakistani businesses establishing local offices and registering with local chambers. The mission addressed issues such as non-tariff barriers and facilitated Pakistani firms’ participation in trade fairs, enhancing exposure to UAE markets. The ambassador revealed plans for a bilateral economic partnership agreement with the UAE by the end of September, presenting potential opportunities in goods and services sectors. Fakhruddin Diwan, chairman of the Pakistan-UAE business council, sees the inclusion of more Pakistani companies in the DCC as a significant achievement, anticipating strengthened foreign reserves and increased global exposure for Pakistani products.

Markets, Smart Dubai, UAE

Binghatti grows its land bank in Business Bay with Dh365 million plot acquisition

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Leading UAE property development brand – Binghatti Properties – grows its land bank in Business Bay with the purchase of a new plot exceeding a transaction value of Dh365 million. Strategically located in the heart of Dubai’s bustling metropolis, Business Bay is regarded as one of the most prestigious destinations in Dubai. Located minutes from Dubai’s famous shopping destination – The Dubai Mall – and with breathtaking views of the Burj Khalifa and the Dubai Water canal, the destination is also home to some of Binghatti’s most iconic flagship projects, including the Bugatti Residences by Binghatti in partnership with the worldclass automotive brand Bugatti. Also located in Business Bay is Binghatt’s Burj binghatti Jacob & Co Residences, – a branded tower in partnership with leading watch and jewelry brand Jacob & Co, which is aimed to be the tallest residential tower in the world. In addition to Binghatti’s portfolio of branded projects is the newly announced Mercedes-Benz Places by Binghatti in Downtown, Dubai. Binghatti’s expansion of its project development across Dubai has contributed to the company’s stock value, which has recently been captured at a value of all projects Dh20 billion. In line with Binghatti’s strategy to expand its portfolio of projects in Business Bay, the property development brand has purchased a new plot with a transaction value over Dh365 Million, which they intend to develop and launch in addition to their portfolio of projects in 2024. The project will feature the same intricate design language and details that Binghatti’s buildings are renowned for. Muhammad BinGhatti, CEO of Binghatti Holding said in a recent quote: “This transaction is deemed as the ideal opportunity to design and build a new luxury development for our clients and investors. It will also not only inflate our land plot value by Dh365 million, but also expand Binghatti’s portfolio of plots which we intend to develop and launch in 2024. At Binghatti, we have always strived towards designing our projects with the most intricate and detailed approach, which enables us to create an elevated experience of living across all our projects

Economy, Markets, UAE

Dubai’s two Palm islands are taking all the sales action in villa sales of Dh18m and more

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bai: The two Palm islands are taking a firm grip on the super-luxury end of Dubai’s property market, with Palm Jebel Ali now accounting for 50 per cent of overall city-wide sales in the Dh18 million to Dh20 million price range. All the more remarkable because the Palm Jebel Ali in its revised masterplan launched sales just 3 months ago. if one were to stretch the price range, then Palm Jebel Ali would be making up a whopping 80 per cent of Dubai’s Dh18 million to Dh30 million homes. At the same time, Palm Jumeirah has a lock on 32 per cent of homes that fetched values of Dh45 million and over during 2023, according to new data from Reidin-GCP. Dubai’s first Palm island should see further action with developers launching sales of a Dh600 million penthouse – aiming to be Dubai’s costliest such – and of an Armani project (Dubai’s second featuring the iconic luxury label after the one at Burj Khalifa). In perfect sales ‘harmony’ Just as important, the two Palm islands are not competing between themselves for buyers. “Palm Jumeirah home prices had declined slightly prior to the launch of Palm Jebel Ali – but have since made a turnaround,” says the Reidin-GCP report. Based on market feedback, more than 500 villas have been sold at the Palm Jebel Ali so far. There is a fresh batch of pricey homes that are in the market right now at Dubai’s big new luxury residential destination, again with prices from Dh18 million. Not just that, Palm Jebel Ali has sold 541 villa plots, and property market sources say this will continue to be a key feature of overall demand for the two Palms. How Palm Jumeirah and Palm Jebel Ali fared in the various multi-million dirham price rangesImage Credit: Reidin-GCP VIEW GALLERY AS LIST 1/2 “Luxury home investments in Dubai are not heading for any softening in demand for the near future,” said an estate agent. “If anything has changed, it’s about the choices that are available for buyers, whether that’s the first Palm or the second.” Still a lot happening In 2023, Palm Jumeirah property values went through another 20-30 per cent price rise, helped along by recent offplan launches that have come with significant mark ups. In fact, “Palm Jumeirah prices reached their highest point – Dh6,039.58 per square foot – in the last 12 months after Palm Jebel Ali’s launch,” says the Reidin-GCP findings. The recent offplan launches at Palm Jumeirah are looking at 2026-27 completions, which is also the likely timeframe for the first set of completed homes on the Jebel Ali island. This also creates possibilities for ready homes on Palm Jumeirah to be up for renewed demand. According to market chatter, potential sellers are already fine-tuning their likely asking prices. “All signs point to a further double-digit gain in Palm Jumeirah values, especially on apartments, this year” said a broker. “That’s what sellers are waiting for – the right moment and the right exit price.”

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