06 Sept 2021, Khaleej Times – khaleejtimes.com
The property prices in Palm Jumeirah, Jumeirah Bay, Emirates Hills, and Dubai Hills have surged at an astounding rate.
The UAE’s luxury property market will continue to enjoy a high volume of record deals, especially in Dubai, where locations such as the Palm Jumeirah and Emirates Hills continue to attract a number of foreign and local investors.
Speaking to Khaleej Times, Sonia Gidwani, luxury real estate adviser with Crompton Saltini Real Estate, looked back at the recovery of the luxury market in the emirate and what it means for the future of the sector.
Dubai, she said, is a resilient city that adapts to any situation. “The steps taken by the government to handle the Covid-19 pandemic, open relationships with other countries, along with the ease of owning your business and conducting it have brought a lot of high net worth individuals to Dubai. Having experienced the cosmopolitan and vibrant vibes of the city, they decided to make this their home.”
This, in turn, has been driving the property market, she explained. “As water front properties and golf course communities are a huge attraction, the property prices in Palm Jumeirah, Jumeirah Bay, Emirates Hills, and Dubai Hills rose at an astounding rate. Another factor is the attractive mortgage rates that are making the market accessible at every level.”
Record Dh100 million deals
Gidwani also highlighted and shared details about the most recent Dubai Hills mansion which sold for over Dh100 million – a record as it was the highest sale of a villa in Dubai Hills. It is also the third major property deal exceeding Dh100 million in Dubai this year.
“The mansion sold in record time; from the date of listing to the date of transfer, it was only a matter of weeks, which is testament to the quality of the product and the aggressive nature in our pursuit of the right client on behalf of the seller,” she recalled. “The owner of the house had the design concept, and Helen Skea from Infinite Architecture and Interior Design had the mammoth task of bringing that concept to life. Keep in mind that a 32,000 square feet house is no easy task when it comes to giving this house both the warmth and grandeur that it deserves.”
She also revealed that the home design used the highest grade of equipment and materials in its construction, brought together from all over the world including India, Spain, Italy, America, and even Bali. “Ultra-high net worth clients in this respect are just the same as any other client when buying a home. They have specific requirements and it is our job to help them identify and then show them the property that best suits their needs. When buying a home, one has to understand that one almost always needs to make some changes, but it is our job to help them find what’s closest to their perfect home.”
Asked about features that are considered to be a must by home owners today, Gidwani noted that high net worth clients are very particular about privacy and security. “Having a home of this size requires an army to maintain! So staff quarters are an important aspect. Needless to say, the walk-in wardrobes need to be very large.”
A revival in the making
Farooq Syed, CEO of Springfield Properties, noted that it is “a great time” for the luxury market in Dubai. “I definitely see it as a revival from what the luxury real estate market scenario was at the beginning of last year pre-Covid-19. We have seen a great surge in demand from overseas HNWIs, especially from Europe. There’s no denying that prices have gone up and supply is nearly done in most high end projects where availability is dwindling.”
Further elaborating on demand and supply, he noted that over the next few months, as the weather gets better and more tourists start arriving for Expo 2020 Dubai, the market will continue to see a healthy demand in high end luxury real estate.
“I’m hoping to see the record setting sales continue,” he said. “I believe we will see a good number of new record transactions in Dubai Hills and Palm Jumeirah. We experienced the majority of the demand from overseas HNWIs at the end of last year and the beginning of this year. We even saw local investors starting to purchase as prices started appreciating from the first quarter of 2021.”
Dubai cements its position
Fathi Akram Skaik, managing director and business owner of Noble Empire Real Estate Brokers, said that Dubai will always be the destination for ultra-high net worth individuals when it comes to investing in real estate, especially in luxury properties. “The measures that the UAE government has taken to ease doing business in the country, and how they have handled the pandemic, has made it clear to UHNWIs that this is the place that they should consider as their second home.”
Like Gidwani and Syed, he noted that the majority of the demand this year has revolved around luxury properties in Dubai Hills, Emirates Hills, and the Palm Jumeirah. “I think that this will continue, given the high quality of the end product and the multiple options that are available in the market that fulfill all the requirements of such investors. There are so many options when it comes to high-end luxury residential needs: you have ready to move in mansions and penthouses, and the option of building your own dream houses by buying the plot and building on it the way you want.”
Looking at what is driving the demand, he said that celebrities such as sport players, actors, and other personalities have spent their summer vacations in the UAE and bought many properties as a result. “In addition, we see that the majority of interest in the UAE luxury market also comes from investors and global UHNWIs, not forgetting that the mid-market segment, has seen a tremendous demand as well. Other factors to take into consideration are the fact that most of the developments are in secure gated communities in the middle of the city, and Expo 2020 Dubai which has played a big role in attracting such investors.”