There has been a remarkable transformation in the luxury real estate market in Dubai in the last three years.
This has helped solidify the status of the emirate as the premier global destination of HNRWs i.e. high-net-worth individuals.
The effective response of the city to the COVID-19 crisis, its visionary development and a rise in demand for luxury properties, all have thrust Dubai into the limelight.
Therefore, it is not surprising that the emirate has become a haven for businesses and families that are seeking opportunity and stability.
Prime by Betterhomes published a report, which revealed that October proved to be a fantastic period for the real estate market in Dubai.
This is because this month saw the secondary luxury transactions reach the highest number for the year. Secondary sales were three times higher than September, while off-plan luxury sales remained same.
In January, off-plan sales stood at 84, but by October, they had declined to 22. But, secondary transactions had been 67 in January and in October, they reached 277.
As far as value is concerned, the former were about AED 1.028 billion, while the latter transactions had a value of AED 6.757 billion.
It should be noted that there are a number of factors that have contributed to the rise in demand for luxury properties in Dubai.
These include entrepreneurial incentives, visa reforms as well as cultural advancements. The visionary plans of the city for waterfront developments can redefine the landscape.
These include projects, such as the Palm Jebel Ali and Dubai Islands project. Branded residences have emerged as a striking trend, as they offer unparalleled recognition and quality.
With a tailored approach and continuous innovation, Dubai has managed to retain its status in the global luxury real estate market.
The most transacted luxury community in Dubai in October was Palm Jumeirah, with the second and third spot being taken up by MBR City and Palm Jebel Ali.
There was a decline in transaction activity in communities like Damac Hills, Business Bay and Bluewaters Island.
There was an 80% surge in the branded residential market in year-on-year sales, with more than 2,000 units launched in this year.
Branded residences saw a 33% increase in average prices per square foot since December last year. There are several reasons why luxury branded residences have become popular.
It helps in addressing with the issue of product quality and also provides the highest standard of finishing, particularly in the case of off-plan purchases.
In addition, these developments also offer broad market recognition and have a solid reputation, which improves the prospects for rental and resale significantly.
The top luxury developers this year were H&H, followed by Omniyat and Majid Al Futtaim, as they launched some prominent projects.
These include Serenity, Lanai Island, Orla Infinity and Baccarat Downtown. Dubai is attracting a diverse population, which includes local buyers and expats who are looking for long-term prosperity and wealth diversification.