A shortage of high-end, ready-to-live properties in Dubai, the demand on rise
28 October 2022 – ZAWYA BY REFINITIV – www.zawya.com
Dubai, UAE: Property buyers in Dubai are moving towards off-plan purchases as the emirate experiences a shortage of available high-end assets, according PNC Menon, the founder and chairman of Sobha Realty.
Speaking ahead of Cityscape – the UAE’s largest property event – Menon said the shift to off-plan reflects heightened market demand from a growing investor base, adding UAE-wide development trends are increasingly shifting towards sustainability focused projects.
“We have seen increased demand for luxury villas and penthouses since 2021, with buyers expecting properties of higher quality with larger layouts,” said Menon. “This demand uptick has resulted in the emirate facing a shortage of ready high-end properties. Due to lack of available inventory, buyer demand is gradually being pushed towards off-plan property, which is helping to mitigate the shortage of villas.
“Moreover, many foreign investors have high-quality standards, making it difficult for them to acquire secondary market homes that satisfy their requirements. As a result, they are also exploring off-plan options to ensure high-quality furnishings and customised designs.”
Menon says investors are being attracted by Dubai’s safe destination appeal, particularly among buyers from India, Russia, China, the UK, and Nigeria. “Every year, the mix of nationalities keeps changing, with 50 per cent of our investors being UAE residents and the rest residing overseas,” he added.
Client preferences are also shifting according to Menon, who says the properties that will be in most in demand in the future will be community-based sustainable developments. “These will keep increasing, which focuses on mitigating climate risks, such as achieving net zero targets, energy efficiency, and transition to renewable sources,” he added.
Cityscape, which runs at the Dubai World Trade Centre from November 21-23, will give visitors a first glimpse of Sobha Realty’s new master planned urban design community, Sobha Reserve, which leverages technology for heightened efficiency, sustainability, and liveability.
“We have integrated various innovations such as robotics, AI, and data analytics to ensure high-quality and luxurious properties,” says Menon.
Meanwhile Dubai Investments PJSC will also use Cityscape as the platform to launch its new Danah Bay freehold beach community in Ras Al Khaimah, which it believes will be a benchmark in mixed-use development with sustainability at its heart. “This project is in line with our vision of creating a comfortable lifestyle destination, seamlessly integrated with nature,” said Obaid Salami, General Manager, Dubai Investment Real Estate.
Leading Dubai-based developer Azizi Developments believes demand for sustainable communities is now a mainstay of a market that is being guided by the UAE national agenda for inclusive environments.
“Azizi Developments’ economic pillar emphasises the creation of a sustainable economy that grants residents cost effectiveness and high-quality, long-lasting buildings,” explained Farhad Azizi, CEO, Azizi Developments. “Implementing best practices in sustainability is an ongoing mission that we will never cease to pursue, and that is reflected in all our projects, which not only preserve our valued environment, but, as a result, are built to last much longer than most other buildings. From the materials that we source, to where and how we build our projects, all the way to new technologies being applied, we develop our homes in cohesion with the UAE’s environment, safeguarding their condition for generations to come.”
Sustainability is also high on the agenda of the Cityscape Intelligence Talks, which are a key focus of the exhibition’s probing industry conference. Alexander Heuff, Cityscape Exhibition Director, believes delegates will gain powerful insights that will impact their development strategies.
“Following the COP 27 conference in Sharm El Sheikh, the world is buzzing with talks around sustainability and the region’s efforts to achieve their Net Zero targets over the next 20 to 30 years,” said Heuff. “The 22nd edition of the Cityscape Intelligence Talks will tackle the industry’s contributions and efforts in curating the Green Smart City of the future, provide a sustainability and urban regeneration blueprint with the Dubai 2040 Urban Master Plan, share insights into the region’s market trends, and curate organic discussions with leading experts and key industry players.
“We understand that buying a home, especially your first, is a big moment for anyone, and that’s why we have made it more accessible than ever this year by giving visitors all the tools they need to make an informed decision. We have some of the leading developers taking part with a number of new projects on display so the choice under one roof will be unrivalled. At this year’s Cityscape Dubai, it will be easier than ever to find a dream home,” added Heuff.