The first deal of the year was the sale of one of the towers in the Downtown area. The year for the Dubai real estate market was marked by a major deal: a European fund bought the Sky View Tower in the heart of Dubai Downtown Dubai for more than AED 750 million from developer Emaar, which once again confirms the growth of buying activity in the UAE commercial real estate sector. The Sky View building houses the Address Hotel and residential apartments starting at AED 1.5 million (US $ 410,000).
This transaction has also become one of the largest real estate deals in the UAE in recent months, which means that buyers are actively looking for adequately and fairly priced properties in a wide variety of segments of the emirate’s real estate market. It’s no secret that commercial and residential properties have undergone significant revaluation over the past two years, especially after the outbreak of the pandemic.
The consulting company Luxhabitat Sotheby’s International Realty acted as a consultant in a high-profile deal for the sale of the Sky View building. A company spokesman declined to comment on the name of the European fund or more details on the deal. Official confirmation pending.
At the end of 2018, Emaar sold five of its hotels to ADNH (Abu Dhabi National Hotels) for AED 2.2 billion (the US $ 60 billion).
The management company Address is expected to remain the operator of the hotel chain representing the hotel in the Sky View Tower. The building has 169 hotel rooms and 551 serviced apartments, a suspension bridge, and a 70-meter infinity pool. The construction of the complex was completed in December 2019.
One-bedroom apartments in Sky View currently start at AED 1.5 million (the US $ 410,000) and a five-bedroom penthouse can be purchased for AED 11 million (the US $ 2.99 million).
In general, the central area of Dubai Downtown Dubai has shown good results recently, arousing the interest of real estate buyers in the second half of last year. Real estate prices are still under pressure here, but there was no such decrease that was observed in other regions during this period.
“European funds are currently actively exploring the possibility of acquiring Triple-A hotel assets in Dubai, as prices, yield, and visitor numbers for investors here provide the best balance,” said an industry source.
“The nearly AED billion from the two transactions is proof that the buying interest in real estate in the UAE is still very high,” commented the experts. And what is remarkable about the acquisition of the Sky View building is that it was bought by a foreign fund. This is a major chance for confidence-building among major international investors”.
In 2021, Dubai is scheduled to open several luxury pools without shores. In the second quarter, the panoramic AURA Skypool will open at an altitude of 210 meters above sea level – it will occupy the entire 50th floor of the new Palm Tower hotel on The Palm Jumeirah
The author of the landscape project, one of the most anticipated, is the Spanish group Sunset Hospitality Group. It is clarified that the AURA Skypool will become one of the highest-lying pools in the world – it will offer panoramic views of the azure waters of the Persian Gulf.
The two towers, called Palm360, will be the tallest on the island: the first will house 125 hotel rooms, the second – 359 branded residences, including 16 penthouses with private pools, gyms, and cinemas. But most of all, sunbathers are waiting for the heavenly pool, the largest in the world: it will be located at a height of 170 meters above the ground, and its length will be 155 meters. The pool, as noted, will connect two towers at a height.
The new hotel and residential complex SLS Dubai Hotel & Residences is preparing to open in the heart of Dubai, in the Downtown Dubai area. It will become one of the tallest hotels in the world and will offer 371 residential apartments and 321 apartment rooms to accommodate guests. There will be two infinity pools on the roof at once, from which a stunning panoramic view of Dubai will open.
Already in January 2021, Dubai residents and visitors will see the opening of a luxurious infinity pool on the roof of the new Address Jumeirah Resort (next to the Doubletree by Hilton JBR). Two towers, connected at the top and bottom, have long complemented the postcard view of Dubai and the JBR beach area. It clarifies that the pool will occupy the entire roof of the new complex, which guarantees stunning views of the city for those who like to cool off.
As previously reported, in December, a new restaurant quarter called Bla Bla will open in Dubai’s beach area Jumeirah Beach Residences, which will house 20 bars, 3 restaurants, and a beach club
On The Walk embankment, the new complex occupies an area of 100 thousand square meters. feet.
Guests will find licensed restaurants and bars, hookah, and a dance and music program. The first stage will open the Bla Bla Beach Club with its own bar and entertainment program, panoramic views of Bluewaters Island, and the Ain Dubai Ferris wheel.
The first floor of the two-story club will be occupied by a Balinese-themed beach bar, and on the second floor, guests will find 8 different types of establishments: three on the terrace and five indoors, including an Irish retro bar, a Hollywood-style bar, and a vinyl Record Room.
Already in December, three licensed Bla Bla restaurants will open for guests: next to the pool, guests will find Italian and Japanese restaurants, as well as a Texas-style smokehouse where you can taste smoked brisket, honey-glazed grilled chicken, and delicious ribs.
At the second stage, by the end of 2020, 9 more bars of different styles and themes will open – on an area of 22 thousand square meters. feet. It is planned that guests will spend the whole day in the quarter: first, swim in the pool, enjoy cocktails in the bar at sunset, and then stay for dinner in one of the restaurants.
As Dubai’s population continues to grow, so does the property market. Therefore, if an investor lives in Dubai and spends a large amount annually on renting real estate, then it will be profitable for him to buy his own real estate, which can give the investor a good return on investment if he ever wants to sell it.
Also, Dubai offers a higher rental yield compared to many other cities in the world. The minimum rental yield is 5% and the average is 8% in residential areas such as JVC. Therefore, an investor can also choose to rent out their property in order to get a good return on investment.
EXPO 2021 is expected to receive around 25 million visitors and new residents. This will result in a significant increase in economic activity in Dubai. It is expected that about 120,000 new properties will be offered on the market. This is another important reason why it is worth investing in the real estate market.