Date: Dubai, January 19, 2017 

A surge in oil price and new investment from China and India, is set to boost Dubai’s real estate market that is witnessing a massive inflow of capital, evident in Dh12 billion deals concluded in the first 15 days of 2017.

Dubai Land Department said, it witnessed Dh12 billion deals in the first two weeks of 2017, or Dh6 billion in every five working days – creating a history of transactions in the first few weeks in a year. At this rate, Dubai could record real estate deals worth Dh292 billion this year – if the trend continues. This would be way above the last year’s Dh259 billion property deals recorded in 2016.

“These figures are living testimony that the worst for Dubai’s real estate market is over and we are looking at a strong growth path ahead of us,” Noorul Asif, Chief Operating Officer of Schon Properties, said. “With sound regulatory environment that ensures that all stakeholders in the real estate industry play their due role in development, delivery, buying and selling activities – nothing could go wrong – despite challenging external factors.”

The fourth quarter of 2016 witnessed major transactions in many areas. Two land plots in Al Hebiya 4 were sold for Dh900 million, while another land plot in the same area was valued at Dh750 million, according to Dubai Land Department. In terms of units, Dubai Marina recorded the highest value transaction of Dh29.7 million, while two units in Al Thunaya 4 were valued at up to Dh28.3 million each.

During the first 15 days of 2017, land plots recorded 520 transactions worth Dh7.51 billion, while land sales claimed the lion’s share in terms of volume, generating 306 transactions worth over Dh3 billion. Mortgages excelled in terms of value, after reporting 190 transactions worth Dh4 billion.

Building transactions totalled Dh682 million. Segmenting building sales and mortgages, building sales recorded 287 transactions worth Dh532 million, while building mortgages performed 74 transactions worth Dh127 million.

Individual unit sales and mortgages also saw significant activity, generating over Dh2.8 billion. This was split between 1,616 sales transactions worth Dh2 billion, and 338 mortgage transactions worth Dh453 million. 

The value of transactions across the three categories – land, buildings and individual units approaches Dh12 billion, achieved via 2,210 sales, 602 mortgages, and the remainder from other transaction types.

Citing the latest economic growth figures that shows Dubai economy set to grow at 3.1 per cent this year, up from 2.7 per cent last year, he says, the market will only grow now.

“With a large number of properties due for deliveries, there could not have been a better time to invest in Dubai’s real estate market. While the new deliveries could put additional pressure on price per square feet, the new investments could accelerate the demand and push up prices. This is the best time to buy properties in Dubai – both in terms of buying for living and investment,” he said. 

Schon Properties, a leading developer of quality assets, has launched a direct marketing and customer engagement campaign in January 2017 – to attract investors and property buyers as well as create a strong awareness on its projects – namely Schon Business Park and the Dh3.2 billion iSuites hospitality concept that helps investors to generate 12 per cent annual rental returns.

The campaign is carried out throughout the month of January in Dubai, Abu Dhabi and Al Ain by setting up kiosks across key some of the best and high-end luxury hotels to attract high-end investors.

The campaign started with a two-day campaign at the Amiri Majlis of Hilton, Al Ain Hotel from January 7-8 and continuing on with a two-day campaign from January 14-15 at the Intercontinental Hotel in Abu Dhabi.

Schon Properties will also host a one-day marketing campaign on January 21, at the Emirates Palace Hotel, before coming back to Dubai. The marketing campaign will be held from January 28-29 at the Ritz-Carlton Dubai. The campaigns takes place for 12 hours, from 10 am till 10pm on these days.

“As Schon Properties starts the new year, we wanted to send a strong message to the market with the marketing campaigns that will re-inforce our strong commitment to the UAE market,” Alaa Massoud, Vice-President for Marketing at Schon Properties, says. “The campaign not only promotes our projects, but also will go a long way in strengthening investor confidence in the market – when they directly interact with our sales and marketing team members.

“This is our way of supporting the real estate market and taking our projects to the customers for them to make an informed choice, as we accelerate project construction and delivery schedule.”

Schon Properties has recently launched iSuites – a Dh3.2 billion hospitality project – that will widen the choice for extended family stay. As many as 2,550 iSuites hotel apartments will be developed at the Dubai Investment Park that will be connected to the rest of the urban public transport network through Dubai Metro and is being developed at a site close to Dubai Expo 2020 site.

The entire complex includes 21 mid-rise buildings – each having 9 floors including two basement floors – will be delivered by 2020, just before the historic Expo 2020 begins in the fourth quarter of 2020. The branded hotel apartments will be managed by international hotel operators to offer greater comfort to visitors. Part of the iSuites inventories will be offered to investors looking for a high return on investment.  

Sales of the iSuites are currently on as investors and buyers could now purchase a hotel suite or a service apartment that will be managed by international branded chain hotel operators and giving opportunity to buyers a higher income of 12-15 per cent per cent.   

“Through the marketing campaign, we are creating a greater customer awareness on our project and offering them the opportunity to create more wealth by investing in iSuites hotel apartments, that offer 60-70 per cent more rental income than the regular income from apartments,” Massoud says.

About Schon Properties  
Schon Properties, one of the top private real estate developers in the UAE, has an 8 million square feet development portfolio valued at Dh7 billion.  The company has over 3,000 customers and as of October 2016 has successfully delivered over 1.6 million square feet of developments till date.  Schon was the first company in Dubai to launch affordable housing targeting midmarket buyers, and the first company to introduce a post-handover payment plan.

Schon Vision 2020 entails focusing on sustainable income models via hospitality investments next to EXPO 2020.  As a corporate policy, the company intends to retain its assets for sustainable income, as opposed to conventional methods of sales used by other developers. With a staff of over 400 and being vertically integrated, the company strives itself on corporate governance and best practices worldwide.

For Additional Information, kindly contact:
Mr Alaa Massoud
Vice President Marketing
Schon Properties
P.O. Box 111976, Dubai, UAE
Tel: +9714 4071000
Fax : +9714 3522400
Email : alaa.massoud@schon.properties

© Press Release 2017