Gulf Construction Online

Real Estate

News in brief

01 September 2021

Kuwait’s real estate sales surge to $1.3bn in June

Kuwait’s real sector witnessed increasing activity in June when compared to May recording a total of 1,271 transactions worth KD392 million ($1.3 billion) with the Al Ahmadi Governorate garnering the lion’s share of deals. The value of private housing trading activity too rose 7.7 per cent, according to the latest data available in the Ministry of Justice – Real Estate Registration and Authentication Department.

When comparing the total trading for June last year, the report said it had increased around 407 per cent from about KD77.2 million to KD391.9 million. Regionwise, Al Ahmadi Governorate achieved the highest number of deals with 861 deals, representing about 67.7 per cent of the total number of real estate transactions, followed by Hawalli Governorate with 143 deals, representing about 11.3 per cent, while Jahra Governorate had the lowest number of deals with 27 deals represented by 2.1 per cent, it added.

According to the report, the monthly average value of private housing transactions during the last 12 months amounted to about KD215.6 million, meaning that the value of transactions for the month of June 2021 is 46.1 per cent higher compared to the average.

The number of deals for this activity increased in June to 1,166 deals, compared to 1,059 deals the previous month, it added.

Wasl launches 80-unit residential tower in Dubai

wasl properties, a leading real estate development company in Dubai, has announced the release of ‘wasl bay,’ a new project in Garhoud that offers residents a mix of 80 units comprising one-, two-, and three-bedroom apartments.

The units are available in various sizes, ranging from 644 sq ft for one-bedroom units with rental prices starting at AED45,000 ($12,249) to 1,291 sq ft for three-bedroom ones (valued at AED85,000), says wasl. The project is located in an area that boasts diverse lifestyle options which cater to every need, with proximity to Dubai International Airport, Dubai Festival City Mall, Al Khail Road, Sheikh Rashid Road and direct access to Business Bay Crossing Bridge and Al Garhoud Bridge. Amenities at the project include a gym, a swimming pool, retail shops and parking for residents, it adds.

Dubai sees big demand for Grade A office space in Q2

The demand for Grade A space in Dubai has remained strong over the last three months, contrary to the situation in 2020 when markets were easing out of lockdown, according to Savills, the leading global real estate advisors.

Since Q4 2020, it has seen a steady rise mainly due to the strong economic recovery and bullish business sentiments for the remainder of the year. Moreover, relocations continue to drive demand with occupiers looking to upgrade to Grade A developments, states Savills in its latest ‘Market in Minutes’ research.

With sustainability remaining a top priority for tenants, now more than ever, developers and landlords are beginning to evaluate the feasibility of certifying their buildings with globally recognised accreditations such as LEED (Leadership in Energy and Environmental Design, among others.

Furthermore, this has also driven an increasing number of landlords to upgrade common areas and other building facilities to improve the marketability of their buildings, says the expert.

During Q2, the demand for office space has notably shifted to submarkets such as Dubai International Financial Centre (DIFC), Dubai World Trade Centre (DWTC), Dubai Multi Commodities Centre (DMCC) and onshore locations such as Business Bay, it adds.

Paula Walshe, Director of International Corporate Services at Savills Middle East, says: “Due to the accelerated vaccination drive, the UAE’s economy is among the very first in the world to showcase increased recovery and growth. This has given companies the confidence to move away from focusing on cost saving to instead securing quality office spaces.”

Swapnil Pillai, Associate Director Research at Savills Middle East, says: “In most micro-markets, rental values have remained relatively stable when compared to Q1 2021. However, certain submarkets, such as the Dubai Design District (D3) and One Central, have recorded an increase in rental values by 1.5 per cent to 3.0 per cent q-o-q.”

Mall of Dilmunia seals tenancy deal with top Bahrain fitness club

Mall of Dilmunia, one of Bahrain’s key entertainment complexes at the heart of Dilmunia Island, is now set to become a space for better health and wellness with the signing up of CrossFit Muharraq as its third anchor tenant.

CrossFit Muharraq is one of Bahrain’s premier facilities in terms of strength and conditioning and among the top fitness clubs in the region. The new state-of-the-art facility will include amenities that are key differentiators such as a mixed gym, a ladies-only area, a sauna, ice baths, heavy-duty machines and a café, says the Mall of Dilmunia. It is a promising tourist destination with future plans of hosting workshops that would draw participants from all across the region.