Dubai’s real estate market continues to thrive, with off-plan transactions now accounting for 63 per cent of all property sales in 2024, up from 54 per cent in 2023, according to a new report from Engel & Völkers Middle East.

This surge in off-plan activity reflects growing demand for new developments, fuelled by competitive pricing, attractive payment plans and limited supply in the secondary market.

The report highlights a significant rise in total residential sales, which climbed by 40.3 per cent year-on-year to 170,992 units in 2024 — more than five times the number of transactions recorded in 2020.

This surge underscores the strong investor confidence in Dubai’s property market, with apartment sales leading the charge.

Apartment transactions grew by 47.6 per cent compared to the previous year, making up nearly 90 per cent of the overall market expansion.

The popularity of apartments can be attributed to their affordability, strong rental yields, and appeal to end-users and investors.

Palm Jumeirah, Downtown Dubai, and Dubai Marina lead luxury demand

Luxury real estate remains a focal point, with high-net-worth individuals continuing to favour prime locations such as Palm Jumeirah, Downtown Dubai, and Dubai Marina. However, newer developments, including Palm Jebel Ali and The Oasis, are generating fresh interest in off-plan properties, catering to affluent buyers seeking exclusivity and long-term capital appreciation.

In the ultra-luxury segment, properties priced over Dhs10m saw a notable 20.5 per cent increase in sales, further solidifying Dubai’s status as a leading global destination for prime real estate.

“The continued dominance of off-plan sales reflects a clear shift in buyer preferences, with investors increasingly looking for properties that offer long-term value and flexible financing options,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “Developers are responding with innovative projects, while government-led initiatives, such as long-term visas and free zone expansions, further strengthen Dubai’s attractiveness as a real estate investment hub.”

Commercial property market is thriving

Dubai’s commercial real estate market is also experiencing robust growth, buoyed by strong economic fundamentals and an influx of new businesses.

More than 24,000 new business registrations were recorded in the first half of 2024, which has contributed to high occupancy rates in key business districts such as DIFC, Downtown Dubai, and Business Bay, where occupancy levels have reached between 95 per cent and 97 per cent.

This demand has driven double-digit rental growth across the commercial sector. Office rents rose 11 per cent year-on-year, retail rents increased by 9.7 per cent, and warehouse prices surged by 21.1 per cent, reflecting the city’s growing need for high-quality commercial spaces.

The limited supply of Grade A office space has spurred new development activity, including Aldar Properties’ upcoming project on Sheikh Zayed Road, as well as additional commercial launches planned for the remainder of the year.

Promising outlook for 2025

In 2025, the city’s real estate market will remain a key driver of economic growth.

Investor confidence is being propelled by rising property values, the ongoing expansion of the luxury sector, and the continued dominance of off-plan transactions.

Developers are responding to the heightened demand with new projects, while regulatory frameworks, such as long-term visas and other incentives, continue to support long-term investment in the market.

Read: Dubai real estate sector sees transactions hit Dhs761bn in 2024

Modon Holding, the Abu Dhabi-based investment firm, has reached an agreement to acquire Arena Events Group, a leading provider of temporary infrastructure and event solutions.

The deal, which includes the purchase of Theta Bidco, Arena’s parent company, is set to enhance Modon’s portfolio and deepen its presence in the global events sector.

The acquisition is expected to significantly strengthen Modon’s capabilities in delivering large-scale, integrated services for high-profile events.

Arena, which operates in over 10 countries including the US, UK, and Saudi Arabia, has been a key player in some of the world’s largest sporting events, such as the 2024 Paris Olympics, Formula 1 races across multiple cities, and Wimbledon.

Arena is also known for constructing modular structures, including a stadium for the 2024 T20 World Cup in New York.

Arena has built a strong reputation within the industry. The company has longstanding partnerships with organisations such as the PGA of America and LIV Golf, providing infrastructure for major golf tournaments annually.

Strategic expansion for Modon

The acquisition further extends Modon’s strategic push into international markets. Jassem Mohammed Bu Ataba Al Zaabi, chairman of Modon Holding, described the move as a key step in the firm’s long-term growth strategy, particularly in expanding its global footprint. “Arena’s leadership in the events sector, with a focus on large-scale infrastructure and services, positions Modon for continued growth and diversification in global markets,” Al Zaabi said in a statement.

Bill O’Regan, CEO of Modon, echoed the sentiment, noting that the acquisition would add new dimensions to the company’s existing event services.

“Arena brings a wealth of experience and a strong global client base that will enable us to expand into new markets, particularly in North America, where Arena has a significant presence,” O’Regan said.

A major step into North America

The acquisition also marks Modon’s first major foray into North America, where Arena has its largest revenue base and a workforce of more than 1,000 employees. The US is a key growth area for Arena, which has provided infrastructure for several high-profile events, including Formula 1 races in Miami and Austin, as well as major sports and entertainment events across the country.

The global events sector is experiencing a boom, with increasing demand for high-quality infrastructure and hospitality services at live events. The partnership between Modon and Arena is well-positioned to capitalize on this trend, particularly with the anticipated rise in live event attendance over the coming years.

Syed Basar Shueb, CEO of International Holding Company (IHC), which has owned Arena for the past three years, expressed confidence in Modon’s ability to leverage the acquisition’s synergies. “Modon is the ideal partner to take Arena’s capabilities to the next level, particularly in the growing temporary infrastructure and event structure markets,” Shueb said.

The acquisition, which is subject to regulatory approvals and other customary closing conditions, is expected to close by Q1 2025.

In other news, in December 2024, Modon Holding completed the acquisition of 100 per cent of La Zagaleta, the owner of the ultra-luxurious La Zagaleta residential estate in Spain’s Costa del Sol.

The acquisition marks a significant step in Modon Holding’s international expansion strategy, further solidifying its presence in Europe’s competitive luxury real estate market.

Fancy a serving of fresh, informative ‘real estate insights’ for breakfast?

Look no further than the GB Business Breakfast Briefing: Real Estate Edition, happening on February 20, 2025.

Register for the event at the earliest here

For more information about the event, be sure to read here

Taking place at The Westin Mina Seyahi Dubai, this event will gather industry leaders, investors, and stakeholders to share valuable insights into the UAE’s real estate landscape. The panel discussion, themed “Breaking Ground: The UAE Real Estate Outlook,” will provide attendees with in-depth knowledge on:

• The forces shaping the real estate industry in the UAE
• Insights into current trends
• An overview of future developments and opportunities
• Key drivers of the industry across Dubai, Abu Dhabi, and Ras Al Khaimah

The panel features some of the most prominent names in UAE real estate, carefully selected to provide attendees with thought-provoking and valuable insights into the industry.

Speakers Include:

• Daniel Hadi, CEO Middle East, Engel & Völkers
• Firas Al Msaddi, CEO and Founder, fäm Properties
• Taimur Khan, Head of Research & Development, JLL
• Fibha Ahmed, Vice President of Property Sales, Bayut
• Tatiana Veller, Managing Director, Stirling Hospitality Advisors

Representatives from Grohe and Anax Developments will also be present at the event.

In collaboration with the Game Changers Awards, the panel discussions will not only provide attendees with a comprehensive understanding of the UAE real estate sector but also serve as a networking and collaboration platform.

This is an event no industry professional in the region should miss!

When: 20/02/2025, 8:00 AM
Where: The Westin Mina Seyahi, Dubai

AGENDA

08:00 AM: Registration & Breakfast
09:00 AM: Welcome Speech by Manish Chopra, Publisher, Gulf Business
09:05 AM: Chair’s Opening Remarks by Gareth van Zyl, Editor, Gulf Business
09:20 AM: Keynote Speech

09:30 AM: Panel Discussion 1 – Will Dubai’s Property Boom Continue?

– An in-depth analysis of Dubai’s real estate surge. What’s fueling the boom, and what are the potential challenges and opportunities for investors and developers over the next 5 to 10 years?

10:00 AM: Q&A
10:15 AM: Keynote Speech

10:20 AM: Panel Discussion 2 – Spotlight on Ras Al Khaimah: The New Frontier

– Exploring how gaming and tourism are catalyzing Ras Al Khaimah’s real estate growth. A focus on untapped investment opportunities, emerging hotspots, and how the emirate is differentiating itself from the broader UAE market.

10:50 AM: Q&A
11:05 AM: Keynote Speech

11:15 AM: Panel Discussion 3 – Focus on Abu Dhabi’s Real Estate Opportunities

– An analytical exploration of the factors driving Abu Dhabi’s property market in 2025. This discussion will cover the uptick in foreign investments, government policies enhancing transparency, and the rise of sustainable developments in the emirate.

11:45 AM: Q&A
11:55 AM: Game Changers Awards Ceremony
12:15 PM: Audience Q&A and Closing Remarks

Saudi Arabia’s consumer market is defying global economic trends, showing resilience in the face of rising costs and shifting patterns in discretionary spending, according to the latest 2025 Global Consumer Outlook report by AlixPartners, the global consulting firm.

Despite broader global trends of reduced consumer spending in regions like the US and Europe, Saudi Arabia’s consumer sentiment remains strong, with robust spending projections for 2025.

The report, which surveyed over 15,000 consumers across nine countries, highlights a six-percentage-point net positive shift in Saudi spending intentions, positioning the kingdom as a notable outlier in global consumer behaviour.

“Saudi Arabia’s retail landscape is undergoing a profound transformation,” said Karl Nader, partner and MD at AlixPartners. “While consumer confidence remains evident in categories like dining out and entertainment, rising costs are reshaping shopping behaviours. Consumers are prioritising value, exploring discount options, and balancing essentials with discretionary spending. This evolution will compel operators to rethink their engagement strategies and innovate to meet the changing expectations of the Saudi shopper.”

The findings underscore Saudi consumers’ commitment to both value and experiences, even as they adopt more cost-efficient purchasing strategies.

Spending on essential categories, including groceries and clothing, remains consistent while spending in discretionary sectors shows notable growth — particularly among younger demographics.

Key findings in Saudi consumer spending

Grocery and clothing categories: Spending on groceries (56 per cent, up from 54 per cent last year) and clothing (43 per cent, up from 40 per cent last year) shows a clear trend toward value-driven consumption. Consumers are increasingly opting for entry-price ranges and private-label products as they seek affordability in response to rising costs.

Dining out and entertainment: Dining out remains a polarising category. One-third of Saudi consumers plan to spend more on dining out, while globally, 34 per cent of consumers plan to spend less.

Additionally, 33 per cent of Saudi consumers intend to increase their spending on entertainment outside the home, compared to just 19 per cent globally. This reflects the kingdom’s robust appetite for new experiences, with younger shoppers (18-34 years) driving growth in these areas.

Rise of discounters: Discount-driven retailers are gaining ground, challenging established players in both the grocery and fashion retail sectors.

These retailers are reshaping consumer expectations and shopping behaviour, particularly among value-seeking consumers.

Shift toward local experiences: Saudi consumers remain eager to travel, but affordability and the growth of domestic tourism offerings have led to a surge in staycations and local experiences. The desire for international travel is strong, yet many are now opting for more budget-friendly, local alternatives.

Digital integration in shopping: Digital technologies such as AI-driven product recommendations, mobile payment solutions, and delivery services are increasingly integrated into Saudi consumer shopping experiences, reflecting the growing demand for convenience and seamless digital interactions.

Contrasting global trends

The report notes that, while Saudi Arabia and other emerging markets such as the UAE and China show resilience, spending in the US and Europe continues to decline.

Consumers in these regions are grappling with inflation and economic uncertainty, with spending projections for 2025 expected to be even more restrained than this year.

“Consumers now have more choices than ever before,” Karl Nader concluded. “Established operators will need to innovate and reimagine their approach to thrive in this dynamic environment. Success will come to those who prioritise value-driven offerings, leverage digital tools, and adapt swiftly to meet the changing demands of Saudi shoppers.”

Saudi Arabia’s consumer market is expected to maintain its growth trajectory into 2025, with a clear shift towards value-driven consumption, growing demand for experiences, and the continued adoption of digital shopping conveniences.

With younger consumers leading the charge, businesses will need to adapt to a rapidly changing landscape, balancing the demands for both affordability and enhanced experiences.

Häcker Kitchens by Innerspace: Redefining High-end Kitchens in the UAE: Häcker Kitchens celebrates 15 years in the UAE, marking a decade and a half of excellence in high-end kitchen design. Dubai’s high-end kitchen industry has undergone a remarkable transformation during this time, with Häcker Kitchens by Innerspace leading the way. As Innerspace commemorates this milestone, the company continues to shape the future of kitchen design with innovation, precision, and excellence. Founded in Germany in 1898, Häcker Kitchens has built a legacy of quality and craftsmanship, and since entering the UAE market, the brand has consistently set new benchmarks. Samir Ranavaya, the founder & CEO of Innerspace, has been instrumental in this journey, ensuring that every innovation aligns with his vision for perfection.

How it all began: Visionary journey to the UAE

The decision to bring Häcker Kitchens to Dubai was driven by Ranavaya’s deep appreciation for art, architecture, and design. Samir Ranavaya gauged an opportunity to elevate the high-end kitchen industry by introducing a showroom experience unlike any other. Inspired by the immersive kitchen retail concepts in the UK, the Dubai flagship store on Sheikh Zayed Road became a pioneering space where clients could engage with expert designers, explore 3D presentations, and immerse themselves in a curated selection of materials. This innovative approach quickly set a new benchmark in the industry, thanks to Samir’s relentless pursuit of perfection.

Excellence in high-end kitchen design

Innerspace has distinguished itself through an unwavering commitment to quality and perfection. Samir Ranavaya has instilled a meticulous approach that oversees every detail across more than 1,000 steps, from design and procurement to manufacturing and installation. This dedication to refinement and continuous improvement has cemented Innerspace’s reputation as a market leader within just two years of its inception, a testament to Samir’s vision for uncompromising excellence.

Culture of Integrity, Discipline, and Knowledge

At the heart of Innerspace’s success lies a high-performance culture built on integrity, discipline, and a commitment to continuous learning. Samir Ranavaya’s leadership is defined by honouring commitments, fostering transparency, and making decisions that benefit all stakeholders. Striving for perfection is not just an aspiration but a disciplined practice, reinforced by his relentless pursuit of knowledge and an openness to learning from every experience. His ability to lead by example has shaped a company culture that values continuous growth and refinement.

Blending German Engineering with Nature-Inspired Design

Häcker Kitchens expertly combines German precision with nature-inspired aesthetics, redefining kitchen spaces with the perfect balance of functionality and timeless beauty. Rooted in meticulous craftsmanship, every design seamlessly integrates cutting-edge technology with organic textures, ensuring an effortless fusion of innovation and natural elegance.

Samir Ranavaya’s vision has played a pivotal role in transforming the kitchen from a purely utilitarian space into the heart of the home—a place where warmth, sophistication, and tranquillity come together. By incorporating elements such as sustainable wood finishes, stone worktops, and ambient lighting, Häcker Kitchens creates an inviting atmosphere that reflects both modern sensibilities and nature’s harmony.

Beyond aesthetics, each kitchen is engineered for superior performance, featuring intelligent storage solutions, ergonomic designs, and state-of-the-art appliances that enhance the cooking experience. This commitment to blending precision with artistry ensures that every Häcker Kitchen is not just a statement of refined taste but a seamless extension of contemporary living.

Two Decades of Experience-Shaping the Future

With nearly 20 years in the high-end kitchen industry, Ranavaya continues to innovate and inspire. Samir Ranavaya’s journey has been one of continuous growth, fuelled by a philosophy of always seeking better solutions, questioning the status quo, and embracing new possibilities. His ethos is centered on the belief that nothing is impossible — it is simply a matter of discovering how to achieve it.

Philosophy Rooted in Perfection and Innovation

Drawing inspiration from ancient wisdom and a blend of modern and traditional principles, Innerspace operates with a philosophy of striving for the greater good. Samir Ranavaya has cultivated an environment of relentless improvement, where every process, design, and service is fine-tuned to deliver the highest standards of quality. His dedication to perfection has become the foundation upon which the company thrives.

A Day in the Life of a Visionary Leader

For Samir Ranavaya, the driving force behind Häcker Kitchens by Innerspace, each day is a carefully balanced blend of strategy, communication, and personal well-being. Adhering to the 8:8:8 rule—eight hours of sleep, eight hours of work, and eight hours dedicated to family, friends, and personal growth—ensures a structured and fulfilling lifestyle. Conversations with teams, vendors, and clients revolve around innovation and continuous progress, reinforcing Ranavaya’s mission to redefine excellence in high-end kitchens.

Vision for the Future of High-End Kitchens in the Middle East

Häcker Kitchens celebrates 15 years in the UAE, a milestone that reflects its enduring commitment to excellence in high-end kitchen design. As Innerspace marks this achievement, Samir Ranavaya remains dedicated to pushing the limits of design, functionality, and craftsmanship. By embracing the latest innovations while staying true to its core values, Häcker Kitchens by Innerspace is poised to continue shaping the future of high-end kitchens in the UAE for years to come.