Deyaar launches $191m project in Dubai and plans first development in Abu Dhabi

Property developer expects a 30 per cent revenue growth in 2024 amid higher demand from buyers, says chief executive

Dubai developer Deyaar is bullish about growth in the UAE property market. Pawan Singh / The National

Deyaar Development is launching a Dh700 million ($191 million) project in Dubai and has plans to start its first scheme in Abu Dhabi in the second quarter, amid higher demand for property in the UAE.

The new project in Jebel Ali, ranging from studios to three-bedroom flats, will be financed through debt and revenues from sales, Deyaar’s chief executive Saeed Al Qatami told The National in an interview.

The new 33-storey project, named Eleve, is expected to be completed in three years.

“It is a medium-sized building, situated in Jebel Ali, next to the metro station. We are developing a nice community there, with full amenities and services for our residents and investors,” Mr Al Qatami said.

This is the second project launched by the Dubai-listed developer this year following last month's launch of Rosalia Residences in Al Furjan, which has fully sold out.

“The overall performance of the market … has been fantastic. It’s booming,” Mr Al Qatami said.

“People want to become residents in Dubai … it's now easier.”

Dubai has been recording “fundamental growth” in its property market and is “not a bubble”, he added.

The UAE property market has been booming in recent years on the back of government initiatives such as residency permits for retired and remote workers and the expansion of the 10-year golden visa programme.

Overall growth in the UAE’s economy due to economic diversification efforts is also supporting the property market.

The UAE’s non-oil foreign trade hit a record Dh3.5 trillion in 2023, compared with Dh2.23 trillion in 2022, as the Arab world’s second largest economy signed new comprehensive economic partnership agreements with countries, the latest government data showed.

All sectors, “whether it’s the business sector, whether trading” have been performing well to support the economy, Mr Al Qatami said.

Dubai registered a record 1.6 million property transactions across all market segments last year, up 13 per cent on the previous year, while the value of deals rose 20 per cent annually to Dh634 million.

The demand for property, especially in the affordable sector, is expected to continue growing this year, with prices rising by 10 per cent to 15 per cent, Mr Al Qatami said.

Meanwhile, prices of luxury homes will stabilise, said the chief executive, who has been leading Deyaar since 2010.

The company plans to start its first project in Abu Dhabi in the second quarter of this year, as property demand continues to be strong in the emirate, Mr Al Qatami said, without revealing further details.

In the fourth quarter, Abu Dhabi recorded 2,238 off-plan sales transactions – up 39.4 per cent compared to the same period last year, while ready home sales volume rose 36.5 per cent to 740, according to a recent ValuStrat report.

For the full year, the total volume of residential transactions in Abu Dhabi jumped 77.8 per cent year-on-year to 11,235 on the back of a 104 per cent growth in off-plan market sales and a 27.7 per cent increase in secondary market sales, a report from CBRE said this month.

On the supply front, a total of 2,961 units were delivered in Abu Dhabi in 2023, with nearly 60 per cent of them in Shams Abu Dhabi and Najmat Abu Dhabi.

In 2024, an additional 4,438 units are expected to be completed, with about 69 per cent of this new stock expected to be delivered in Yas Island and Al Maryah Island, the report said.

End users are buying the property in the secondary or ready home market, Mr Al Qatami said, while investors dominate the off-plan sector, mostly hailing from India and Pakistan, as well as Emiratis.

Indian nationals “have a strong outlook for the real estate market in Dubai” and are boosting investments, he said.

Customers are buying ready homes using mortgages, with 20 per cent to 25 per cent of the payment being made in cash.

Deyaar reported a more than threefold yearly jump in its 2023 net profit, fuelled by new projects and increased revenue on the back of the UAE’s vibrant property market.

The company, majority-owned by Dubai Islamic Bank, expects its revenue to rise 30 per cent annually this year, Mr Al Qatami said.