According to a leading developer, there is a rise in appetite for luxury residential property in the United Arab Emirates and this increasing demand has driven developers to provide more offerings.
According to the CEO, luxury offerings are in high demand. He said that luxury is selling everywhere and demand has seen a considerable increase.
Taraf recently starting working on its luxury offering in Palm Jumeirah called ‘Luce’. The residential building is a 9-storey structure, not including the two basement floors.
There will be a total of 38 apartments, which include a penthouse, duplex apartments and also 2, 3 and 4-bedroom apartments. There will also be an exclusive private beach and lifestyle amenities.
The project was launched in February this year and was sold out in a matter of hours. Its development value stands at AED 350 million, or $95 million.
A 2-bedroom apartment in Luce costs AED 7 million, while the cost of 3-bedroom and 4-bedroom apartments is AED 10 million and AED 15 million, respectively.
The penthouse will cover an area of 10,000 square feet and will have a private swimming pool and lift. The cost of duplex apartments on the first and ground floors is AED 45 million, as they come with a swimming pool and garden.
For the design of Luce, Taraf had collaborated with MZ Architects, while construction has been taken by AsasatAldhafraAPCC Building Constructing, which began its work back in August.
Ahmad said that people build up wealth over the years and they buy luxury ‘aspirationally’ in order to retain this wealth.
Low Ping, the CEO of Yas Holdings, also echoed the same sentiments as Ahmad. She said that residential luxury offerings, whether apartments or villas, had seen a rise in appetite.
Luxury property market
She added that Dubai had distinguished itself as a destination for luxury, which was applicable not just in the real estate industry, but also in terms of shopping and entertainment.
She went on to say that people had cash and they had a considerable amount to invest after the COVID-19 pandemic.
She said that people were not making investments with borrowed money because that would not be feasible in light of the rising interest rates.
According to a recent report, the demand for luxury villas and residences is expected to continue growing in the UAE due to the post-pandemic global readjustment.
In addition, Dubai’s luxury property market is said to be largely untapped and this has also drawn global attention.
This year, Dubai’s luxury property market reached a record, as the total number of units sold by the end of July stood at 335.
This made this year the most successful one for the luxury sector. Both Ping and Ahmad confirmed that Taraf would launch two to three projects in the emirate in 2023.
They said that Dubai was their focus right now and they had several projects in the pipeline.