Month: September 2024

September 28, 2024

Charazed Ramzan: Redefining Success in Dubai’s Real Estate Landscape

By Tiger Shree in Real Estate News with No comments

In the competitive landscape of Dubai’s real estate market, Charazed Ramzan is emerging as a groundbreaking leader. As the CEO and Founder of Aranax Real Estate, she has transformed her visionary ideas into a thriving business, demonstrating resilience in an industry traditionally dominated by men.

A Fearless Start

At just 20 years old, Charazed founded Aranax Real Estate, marking the beginning of an inspiring journey. Her commitment to excellence and tireless work ethic have helped her establish a unique presence in this challenging market, where she leads a diverse team united by a common vision of success.

Accelerated Growth

Under Charazed’s leadership, Aranax Real Estate has evolved into a formidable player in Dubai’s property sector. The recent opening of a new branch highlights the agency’s ability to adapt to market dynamics and meet the increasing demand for customized real estate solutions throughout the city.

A Multicultural Team for a Multinational Hub

A core aspect of Charazed’s mission is to cultivate a multinational team that reflects Dubai’s diverse community. She provides personalized training to each team member, instilling the values of integrity, professionalism, and exceptional customer service—hallmarks of Aranax Real Estate.

Empowering Excellence

Charazed is a strong advocate for empowering her team, creating an environment that fosters independence and professional growth. By leading by example, she has built a community of passionate real estate professionals dedicated to excellence in every transaction.

Global Reach

Today, Aranax Real Estate serves over 3,400 clients worldwide, achieving sales exceeding 200 million dirhams in 2022. With offices in Montreal and Miami, the agency reflects its commitment to delivering high-quality results for a diverse clientele.

Tailored Service

Aranax Real Estate is dedicated to offering personalized real estate solutions, understanding that each client has unique needs. With a talented team of over 50 multilingual agents, they effectively cater to clients from various backgrounds. Whether seeking luxurious villas, sophisticated apartments, or stunning penthouses, Aranax Real Estate guides clients through every step of their journey.

A Reflection of Dedication

As a female entrepreneur, Charazed is committed to uplifting her team and setting a powerful example in the real estate field. Her recognition as Realtor of the Year for 2023 underscores her hard work and dedication. “Success in real estate isn’t just about closing deals; it’s about building meaningful relationships and creating lasting legacies. Every interaction is an opportunity to understand my clients’ dreams and turn them into reality. In a city as diverse as Dubai, we prioritize personalized service and integrity, ensuring that every transaction reflects our commitment to excellence,” says Charazed.

A Vision for Tomorrow

At Aranax Real Estate, investing in property goes beyond mere transactions; it’s about building futures and securing legacies. Charazed and her team prioritize their clients’ investments, ensuring that every deal is conducted with care and professionalism. Their Dubai office is not just a workplace; it’s where dreams become reality.

For those looking to explore Dubai’s premier properties or navigate the complexities of the real estate market, Aranax Real Estate is your trusted partner.

September 26, 2024

New Home Prices Decline as Builders Offer Increased Incentives to Attract Buyers

By Tiger Shree in Real Estate News with No comments

New Home Prices See Decline Amid Incentives
The prices of newly built homes saw a decrease in August as builders introduced larger incentives to attract buyers struggling with affordability issues. According to the U.S. Census Bureau, the median sales price of new homes dropped to $420,600 in August, marking a 4.6% decline from the previous year and a 2.1% dip from July.

Existing Home Prices Rise as Sales Slow
In contrast, the median price for existing homes increased by 3.1% to $416,700 in August, as reported by the National Association of Realtors®. However, sales of existing homes have slowed, with many buyers holding off in hopes of lower mortgage rates in the near future.

New Home Sales Drop, But Year-Over-Year Growth Remains Positive
Sales of new single-family homes declined by 4.7% in August compared to July, with an annualized rate of 716,000 homes. Despite this monthly drop, new home sales were up 9.8% from the previous year when mortgage rates were significantly higher. In August, the average 30-year fixed mortgage rate was 6.5%, down from over 7% the year before.

Lower Mortgage Rates Could Boost Homebuyer Interest

Falling Mortgage Rates May Spur Homebuying
Bright MLS Chief Economist Lisa Sturtevant expects that as mortgage rates continue to drop, more buyers may re-enter the market this fall. However, the growing inventory of existing homes could reduce demand for newly constructed homes. Lower mortgage rates typically fuel price growth, but affordability remains a key issue, limiting many buyers’ purchasing power.

Builders Offer Incentives and Focus on Affordable Homes
To address affordability concerns, homebuilders have ramped up incentives such as mortgage rate buy-downs, price reductions, and credits for closing costs. Many builders, like Lennar, have also shifted focus toward constructing smaller, more affordable homes for first-time buyers. Lennar recently reported a 6% decrease in its average home sales price, primarily due to incentives and a focus on smaller floor plans.

Market Sees Shift Toward Affordable New Homes

Increase in Sales of Lower-Priced Homes
Census data reveals a growing market share for new homes priced under $300,000, which accounted for 18% of new home sales in August, up from 12% a year earlier.

Inventory of New Homes on the Rise

New Home Supply Grows
The supply of new single-family homes increased by 1.7% in August, reaching 467,000 homes, which represents a 7.8-month supply at the current sales pace. Completed, move-in-ready homes hit 105,000, the highest level since 2009, but they represent just 22% of total new-home inventory, which also includes homes at various stages of construction.

Market Still Below Balanced Supply Levels
National Association of Homebuilders Chief Economist Robert Dietz noted that while a 7.8-month supply of new homes may seem high, the existing home market has only a 4.1-month supply. Overall, the combined supply of new and existing homes remains below the six-month threshold for a balanced market. However, this measure could increase as more home sellers test the market in the months ahead.

September 24, 2024

Mortgage Rates Fall to 6.09%, Boosting Optimism in the Housing Market

By Tiger Shree in Real Estate News with No comments

Introduction
Mortgage rates fell to 6.09% for a 30-year fixed loan, down from 6.20%, as of Sept. 19, according to Freddie Mac. This drop has renewed hope for both buyers and sellers in the housing market.

Mortgage Rates Decline
Sam Khater, chief economist at Freddie Mac, stated that the recent rate cut by the Federal Reserve, the first since 2020, is expected to have a positive impact on the housing market. Although mortgage rates do not directly follow the Fed’s moves, the decline in rates over the past few weeks suggests this cut was anticipated. Experts expect rates to continue falling, spurring more buying and refinancing activity.

Optimism Returns to the Market
Realtor.com economist Jiayi Xu believes that the rate cut is injecting optimism into the fall housing market. Realtor.com’s senior economist Ralph McLaughlin predicts that both buyers and sellers will ramp up activity, particularly as the Best Time to Buy—Sept. 29 to Oct. 5—approaches. This period offers favorable market conditions for homebuyers.

Fed’s Rate Cut Spurs Housing Activity
The Federal Reserve’s recent half-point rate cut reduced its benchmark rate from a two-decade high of 5.3% to 4.8%. Mortgage rates are expected to continue falling, with predictions that they could settle between 6% and 6.2% by year-end and possibly dip into the high 5% range by spring.

Home Prices Cool Off
Along with lower mortgage rates, home prices have also been cooling. The national median list price for homes in August was $429,990, and prices fell 1% year-over-year for the week ending Sept. 14. This is the 16th consecutive week where listing prices were at or below last year’s levels.

More Homes Available for Buyers
The housing market has seen a significant increase in inventory, with the total number of homes for sale rising by 33% compared to the same week in 2023. Fresh listings were also up by 6.6%, marking 45 consecutive weeks of increased housing stock.

Longer Time on the Market
Homes are spending more time on the market compared to last year. During the week ending Sept. 14, houses stayed listed for eight days longer than during the same period in 2023. In August, the typical home spent an average of 53 days on the market. With more options available and lower mortgage rates, buyers feel less pressure to make quick decisions, giving sellers a reason to be patient and flexible.

September 19, 2024

11 Compelling Reasons to Invest in Dubai’s Real Estate Market

By Tiger Shree in Real Estate News with No comments

Dubai’s real estate market offers exceptional investment opportunities, backed by consistent growth and high returns. Even through challenges like the pandemic, the market has remained strong and continues to attract global investors. Here are 11 reasons why investing in Dubai’s real estate is a smart choice:

1. Strong Prime Residential Property Market

In 2023, Dubai’s prime residential property values saw a significant rise of 17.4%, far surpassing the global average of just 2.2%. This exceptional growth makes Dubai one of the world’s leading real estate markets.

2. Competitive Pricing

At $750 per square foot, Dubai’s real estate is more affordable than in many major cities. This competitive pricing appeals to both international and local investors seeking high returns.

3. Expected Continued Growth

Looking forward to 2024, Dubai’s real estate market is forecasted to grow by 4% to 5.9%, despite a slight dip from the previous year. This steady growth keeps the city an attractive option for investors.

4. Rising Rental Prices

Rental prices in Dubai surged by nearly 10% in 2023, more than doubling the global average increase of 5.1%. This provides stable income for property investors looking for rental properties.

5. High Rental Yields

With rental yields of 4.8%, Dubai exceeds the global prime gross yield average of 3.1%, ensuring solid returns for investors in the rental market.

6. Low Transaction Costs

Transaction costs in Dubai are among the lowest worldwide, totaling less than 10% of the property’s purchase price. This low-cost structure increases profitability for real estate investments.

7. Stable Economic Environment

Dubai’s diverse economy, driven by tourism, finance, and trade, creates a stable foundation for real estate investment. The city’s rapid urban growth and investor-friendly policies enhance market confidence.

8. Prime Location

Dubai’s strategic location between East and West makes it a key business hub. Its easy access to regional markets boosts the long-term value of real estate investments.

9. Government Reforms Supporting Investors

Government reforms, such as long-term visas for investors and simplified visa procedures, drive demand in the real estate sector. These initiatives encourage both local and international investment.

10. Forecasted Top Performer in 2024

Dubai is expected to remain a top performer in the global real estate market. Savills predicts property prices will grow by 4% to 5.9% in 2024, reinforcing Dubai’s position as a leading investment destination.

11. A Perfect Mix of Investment Benefits

Investing in Dubai real estate offers a combination of high capital appreciation, strong rental yields, and a favorable regulatory environment. In uncertain global times, Dubai’s real estate market stands as a secure investment option.

September 17, 2024

Dubai Real Estate Market Booms: Major Projects Selling Out Fast Amid Global Investment Surge

By Tiger Shree in Real Estate News with No comments

Dubai’s Real Estate Surge

Dubai’s property market remains vibrant, with new real estate projects selling out rapidly. High-profile launches by renowned developers are often fully sold within hours, while newer developers are also experiencing swift sales, sometimes within just a few days.

High Demand for Established Developers

Established developers continue to attract strong demand due to their track record of delivering quality projects on time, offering excellent capital appreciation and significant rental yields. New developers are benefiting from Dubai’s competitive pricing and attractive returns compared to other major global cities.

The credibility of ‘Brand Dubai’ reassures buyers of timely project completion, thanks to stringent regulatory oversight during construction.

Positive Outlook for 2025

Amira Sajwani, Managing Director of Damac Properties, anticipates continued growth in Dubai’s real estate market through 2025. She highlights Dubai’s status as a global city that provides security and growth opportunities. The Golden Visa initiative has successfully drawn new investors seeking both residency and investment opportunities. Compared to cities like London, Paris, Hong Kong, and New York, Dubai remains highly affordable.

Recent Sales and New Projects

Recently, Dubai’s largest private developer sold 600 units of its Dh1.2 billion Violet Phase 3 project within hours, reflecting strong demand. In 2024, Dubai has seen over 93,000 new units launched, setting a record for the highest number of new properties introduced in the city’s history.

Major local developers such as Emaar Properties, Nakheel, Damac Properties, Sobha Group, Samana Developers, and Danube Properties are leading this growth.

Success of New Developers

In September, Samana Developers achieved impressive results by selling out its Dh660 million Ocean Pearl 1 and Ocean Pearl 2 waterfront projects in just two hours. Located on Dubai Islands, these projects offer one-, two-, and three-bedroom apartments, as well as four-bedroom penthouses with private pools.

Abu Dhabi-based Aldar Properties also saw significant success, selling out the first two phases of its ‘Athlon’ project in Dubai within 48 hours, generating Dh4.1 billion in sales.

New developer Majid Developments reported that 40% of its project was pre-sold before the official launch, indicating strong investor interest in Dubai’s property market.

Evolving Buyer Demographics

There has been a noticeable shift in buyer demographics, with increasing interest from British and European investors. The UAE’s Golden Visa program remains a key attraction, with developers offering multiple Golden Visas to potential buyers.

Market Insights

Emirates NBD Research reports that Dubai has sold 104,250 residential units year-to-date, approaching the total sales recorded for 2023. The research forecasts stable activity levels for the remainder of the year, potentially setting a new record for residential sales in Dubai.

September 14, 2024

Kamala Harris Advocates for Lower Housing Costs While Trump Avoids Issue in 2024 Debate

By Tiger Shree in Real Estate News with No comments

Key Points:

  • Kamala Harris focused on the rising housing costs during the debate, outlining her plans to address the issue.
  • Donald Trump avoided discussing housing, focusing more on personal attacks and identity politics.
  • Experts expressed disappointment over the lack of meaningful conversation on housing policies.

Debate Overview: Harris Pushes Housing, Trump Avoids Topic

In their first 2024 presidential debate, Vice President Kamala Harris and former President Donald Trump clashed on various topics. However, housing costs, a major concern for many American families, saw one-sided attention. Harris consistently raised the issue of affordable housing, while Trump largely sidestepped the topic.

Harris’ Housing Solutions

Kamala Harris wasted no time in bringing up the housing crisis, highlighting the lack of affordable homes and the challenges for first-time buyers. She proposed increasing home construction and providing federal assistance for down payments, up to $25,000 for first-time buyers. Harris emphasized that her policies would help 3 million new homes be built by the end of her first term. She also addressed rising property insurance costs due to climate change.

Trump’s Silence on Housing

Throughout the 90-minute debate, Trump failed to address Harris’ housing proposals. Despite having previously outlined ideas like halting illegal immigration and deregulating the home-building industry, Trump didn’t discuss any specific housing policies during the debate.

Expert Reactions

Ralph McLaughlin, a senior economist at Realtor.com, noted the missed opportunity for a meaningful conversation about housing policies. He praised Harris for bringing the issue to the forefront but criticized Trump for ignoring it, leaving voters with little understanding of his housing plans.

September 12, 2024

Saudi Arabia’s Vision 2030 Projects Reach $1.3 Trillion, Transforming Economy and Infrastructure

By Tiger Shree in Real Estate News with No comments

Overview of Vision 2030 Investments

Saudi Arabia’s Vision 2030 initiative has reached a significant milestone, with investments in real estate and infrastructure totaling $1.3 trillion. This ambitious plan, launched in 2016 by Crown Prince Mohammed bin Salman, aims to diversify the Saudi economy away from oil dependency and establish the kingdom as a premier global destination for business, tourism, and living. According to Knight Frank’s latest Saudi Giga Projects Report, the number of projects under Vision 2030 has increased by 4% compared to the previous year.

Key Projects and Investments

Since the inception of Vision 2030, around $164 billion in real estate contracts have been awarded. Major projects include:

  • Neom: This futuristic city on the Red Sea coast has received $28.7 billion in investment, primarily for The Line, a 105-mile-long development featuring twin mirror-clad towers.
  • National Housing Co.: $12 billion allocated for residential development.
  • Diriyah Gate: $9 billion investment in historical and cultural site development.
  • Qiddiya: Nearly $7 billion invested in an entertainment city near Riyadh.

These investments reflect Saudi Arabia’s commitment to transforming its urban landscape and infrastructure.

Construction Market and Future Developments

Saudi Arabia is on track to become the world’s largest construction market as it progresses toward its 2030 goals. Current challenges include managing labor, supply chain issues, and construction costs. Riyadh remains a focal point, with $35 billion in contracts awarded. Upcoming developments include:

  • Residential: 340,000 new homes.
  • Commercial: 4.6 million square meters of office space.
  • Hospitality: Nearly 29,000 new hotel rooms.

These projects are set to support Saudi Arabia’s vision of becoming a key player in global markets and hosting major international events, such as the FIFA World Cup in 2034 and the World Expo in 2030.

Economic Diversification and Tourism Goals

A core objective of Vision 2030 is to diversify the Saudi economy and increase tourism. The kingdom aims to attract 150 million tourists annually by 2030 and secure $100 billion in foreign direct investment. In 2023, Saudi Arabia welcomed 109 million tourists, predominantly locals. To accommodate the anticipated influx of international visitors, the country plans to build 362,000 new hotel rooms by the end of the decade. Knight Frank notes that a balanced mix of mid-market hotels will be crucial to achieving the tourism target.

Conclusion

Saudi Arabia’s Vision 2030 represents a transformative shift in the kingdom’s economic and infrastructure landscape. With substantial investments in diverse projects, the initiative is designed to position Saudi Arabia as a leading global destination and a model of economic diversification and development.

September 10, 2024

Major Changes in Real Estate Commissions: What Home Sellers Should Know

By Tiger Shree in Real Estate News with No comments

Major Changes to Real Estate Commissions

Significant changes are on the horizon for real estate transactions in the United States. The National Association of Realtors (NAR) has recently settled a lawsuit for $418 million, addressing claims that the industry conspired to maintain high agent commissions. This settlement could reshape how real estate agents are compensated, challenging the longstanding practice of 5-6% commissions. Here’s what you need to know:

Refunds for Recent Home Sellers

As part of the settlement, the NAR will pay $418 million over the next four years, in addition to $210 million already agreed upon by various brokerage firms. The settlement aims to reimburse individuals who sold their homes in recent years and paid what some argue were inflated commissions. Depending on your location, you might be eligible for a rebate, possibly covering sales from as far back as a decade ago. For more details on eligibility, sellers can visit the lawyers’ website: www.realestatecommissionlitigation.com.

Impact on Real Estate Commissions

Traditionally, sellers in the U.S. have paid commissions for both their agent and the buyer’s agent, often totaling around 5-6% of the sale price. This practice has led to higher costs compared to other countries, where commissions are significantly lower. Starting in July, sellers will no longer need to specify a commission for the buyer’s agent, potentially leading to increased negotiation and competition, which may reduce overall costs.

Changes in Real Estate Transactions

With the new rules, there will be more opportunities for negotiating real estate fees. Sellers might opt for flat fees, and buyers could choose from a range of services, potentially leading to lower overall costs. Economists estimate that these changes could save homebuyers approximately $30 billion annually, primarily reducing costs for real estate agents.

Effects on Real Estate Agents

Real estate agents will need to adapt to a more competitive environment as commissions become negotiable. While some agents may leave the industry, the overall number of agents might decrease, potentially resulting in more competitive service offerings. Despite this, well-performing agents who provide value will continue to thrive.

Impact on Homebuyers

With sellers possibly choosing not to pay buyers’ agents, homebuyers may need to cover these costs out-of-pocket, which could be challenging, particularly for first-time buyers. As the market adjusts, buyers may explore options such as including agent fees in their mortgage, though this would require changes in mortgage underwriting rules.

Advice for Prospective Buyers and Sellers

The new commission rules take effect in July, coinciding with peak home-buying season. Prospective buyers and sellers should consult with their real estate agents to understand the implications of these changes. While commissions represent a significant cost, they are just one factor among many, including interest rates and housing supply, to consider when making real estate decisions.

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