Dubai real estate lures the elite as demand rises
December 24, 2022, Arabian Business
Prices are set to continue rising next year.
Dubai’s rich lifestyle, visa schemes, real estate among other noteworthy attractions have roped in investors, especially the elite.
According to a report by the Financial Times, “when the first of its 231 deluxe residences was offered for sale seven years ago, a two-bedroom apartment could be bought for a mere Dh5.5 million ($1.5 million).”
The report said that demand has soared since the pandemic, “with owners inundated with requests to sell homes that come complete with swimming pools and terraces offering panoramic views.”
This year, the three-floored Atlantis The Royal’s penthouses was sold for AED180mn.
“2020 and 2021 have been incredible years,” said Philippe Zuber, chief executive of Kerzner International, its developer told the Financial Times.
“Dubai was one of those global destinations managing the pandemic extremely well, so it put Dubai on the map,” he added.
However, the report added that prices are set to continue rising next year, according to a report by Unique Properties, which has forecast a 13.5 percent increase in the cost of prime properties in 2023.
Property group CBRE also added that residential transactions in the 11 months to November topped the record set in the same period of 2009, “right before Dubai’s debt-fuelled property bubble burst amid global financial crisis,” the Financial Times.
Meanwhile, rents rose over a quarter over the same period.
“Dubai has always attracted millionaires and billionaires, but now they’re moving here full time and they want the biggest and best homes,” Luxhabitat Sotheby’s International Realty executive partner Leign Borg said.
The real estate agency has sold 10 properties in the area worth a total of AED420 million this year alone.
Valuations were particularly high in Emirates Hills, Borg noted, while fewer than 5 percent of its more than 600 properties were actually up for sale.
Borg’s offerings include an eco-friendly solar-powered contemporary villa in Emirates Hills’ most exclusive street priced at AED349 million.
“This is what the new wave of buyers are looking for: a turnkey solution, something ready to move in,” Borg said.
The report added that older villas that can be renovated are also popular, with some doubling in value since the pandemic to sell for AED110 million or higher.
“The surge in demand from the wealthiest buyers convinced Dubai’s largest private sector developer Damac to pivot towards luxury offerings.”
