September: New Season, New Investments
Business Development Department
Published · September 8, 2023
Welcome to September, a fresh page turned in the book of time, ushering in a new season of possibilities. As the leaves change, so do opportunities, and this month marks the perfect moment for new beginnings in the realm of real estate investments. Embrace the crisp air and the promise of growth as we stand by, ready to guide you through this exciting journey, helping you make the most informed decisions for your ventures ahead.
Property Market Update and Trends
Yearly Update
As per the report from DXB Interact, the annual sales volume has surged by 57.24% (YTD values) compared to the previous year, reaching 62.3K units. This increase in sales has led to a total sales value of AED125.3 billion, marking a substantial +71.26% year-on-year growth. Interestingly, even though Dubai continues to witness impressive growth, there has been just a slight increase of 2% year-on-year in the property price per square foot going from 1,457AED of 2023 to 1,486AED of 2022.
Monthly Update
Delving into the monthly performance data for August 2023, we observe a notable 8% increase in sales volume compared to July of the same year, with transactions totaling 12,000 units, up from 11,100 in the previous month. Intriguingly, despite this rise in sales volume, the total sales value for August has declined by 10%, falling from AED 38 billion in July to AED 34 billion.
Exploring New Investment Opportunities?
Check Out Our Top UAE Short-Term Rental Areas!
Investing in the UAE real estate market for short-term rentals has been an exciting opportunity in these last years. To guide your future investment decisions, here you can find a report on the top-performing neighborhoods based on their demand.
Dubai
JVC - Jumeirah Village Circle
Jumeirah Village Circle (JVC) is a compelling choice for investors looking for studios and one-bedroom apartments, with a consistent occupancy rate of over 90% throughout the summer. However, with more developments coming online in the next few months, it is important to choose a reputable developer, as not all of them are created equal.
JLT - Jumeirah Lakes Towers
JLT's occupancy rate of over 85% this summer is a testament to its enduring popularity. Its accessibility and range of entertainment options continue to draw visitors, making it a top-of-mind investment choice for both short-term and long-term stays. JLT has a variety of amenities, including restaurants, cafes, and parks, making it a desirable place to live and work.
Dubai Hills
With an impressive occupancy of more than 70% this Summer, Dubai Hills showcases its allure as a new preferred destination for travelers seeking luxury and convenience. This newly bloomed neighborhood has raised attention and capital in the last years becoming a top-notch destination for Real Estate investors
Arjan
Discovering this brand-new neighborhood has been an exciting journey, and we are thrilled to see that the occupancy rates, especially for studios, are simply remarkable. Arjan's strategic proximity to key locations like Dubai Hills and major thoroughfares makes it an enticing opportunity for investors in search of affordability and promising prospects in this burgeoning community.
Abu Dhabi: The New Frontier
Abu Dhabi is a city that is constantly evolving. In recent years, the city has seen a surge in the number of short-term rentals but the market in Abu Dhabi is still in its early stages. This means that there is a great opportunity for early adopters to capture a large share of the market. Several are the reasons why being the first to invest in short-term rental in Abu Dhabi is a good idea.
First, there is a high demand for short-term rentals in the city. Abu Dhabi is a popular tourist destination, and there is also a growing number of business travelers and expats who are looking for short-term accommodation.
Second, the competition is still relatively low. There are a few options available in Abu Dhabi, but the market is not yet saturated. This means that there is plenty of room for new investors to enter the market and grow.
Third, the costs of entry are relatively low. You can invest in a piece of real estate for short-term rental with a relatively small investment. This makes it a good option for investors who are looking to put on the table a limited capital.
If you are considering investing in short-term rental in Abu Dhabi, there are a few things you need to do.
First, you need to find a property that is suitable: well-maintained, and located in a desirable area.
Second, you need to register your property with the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) and obtain a license.
Third, you need to market your property to potential guests.
Silkhaus is already operational in Abu Dhabi and is ready to support you in the previously mentioned steps and to become a reliable partner in your exciting new venture. Our dedicated team specializes in managing home activation and daily operations, ensuring a seamless experience for both you and your prospective guests.
The short-term rental market in Abu Dhabi is a new and growing market. If you are looking for a business opportunity with high potential, investing in short-term rental in Abu Dhabi is a great option and Silkhaus can be your perfect partner.
Sources
https://dxbinteract.com/interactive-price-change & https://dxbinteract.com/dubai-real-estate-market-overview
Silkhaus internal data