This year, a record has been established in the luxury property market in Dubai as the total number of units sold by the end of July stood at 335.
According to a new market study, this makes 2023 the most successful year for the luxury property market in Dubai.
The performance
Even in the months remaining in the year, there is a prediction of a strong demand for villas and luxury residences in light of the global readjustment taking place post-pandemic.
In addition, there is also growing awareness of the opulent real estate market in Dubai, which remains mostly untapped.
This is obvious from the fact that back in 2014, the total number of luxury units that were sold in Dubai stood at 12 and Downtown Dubai was the location of most of these units.
In 2022, this number increased to 416 units and the study revealed that the location of these units were Palm Jumeirah and Business Bay Second.
The study was conducted by a Dubai-based AI proptechventure called Realiste. The price tag of a luxury unit is around $50 million.
For instance, a ready-to-move in penthouse of about 4 bedrooms located in Business Bay and spread across an area of 19,851 sq. ft is available at a price of AED183,625,000 ($50.9 million).
The study revealed that a total of AED40 billion, which is around $11 billion, have been generated through the sales of luxury apartments since 2014.
Real estate improvement
According to another report, there was a 70.3% improvement in the real estate market of Dubai in September 2022.
Most of this was due to pricey luxurious properties that were in the top 5 market values. This was significantly higher than the increases recorded in other cities.
There was a rise of 2.5% in London, 7.3% in New York and 8.9% in Paris. According to the Realiste study, there are a number of factors that have driven up the demand for Dubai’s expensive real estate.
The factors
The study said that the supply of luxury properties has seen a huge increase and this has resulted in desirability and exclusivity.
Furthermore, luxury real estate is also viewed as a tangible asset and haven for wealth by investors and high-net-worth individuals that can offer long-term appreciation as well as prestige.
The demand for luxury properties has also been on the rise because of the growth of affluent populations all over the world and globalization.
These properties are rapidly becoming a symbol of lifestyle and status. Founder of Realiste, Alex Galtsev said that since demand has exceeded supply, it is natural that the latter will readjust to meet demand.
This cycle is expected to continue. It is evident in the launch of a number of luxury projects in Dubai, which include Como Residences, Bugatti Residences, AVA and SereniaLiving.
Post-pandemic, there has been an influx of wealthy investors in Dubai from all over the globe and this is mostly because of UAE’s successful handling of the COVID-19 pandemic.
