The luxury housing market in Dubai: an overview of trends
Dubai’s luxury housing market continues to maintain its positive momentum for quite some time. Despite the initial forecasts of experts, the pandemic had almost no effect on the development of the segment, and it continues to gain momentum. Last year there was an unprecedented demand for expensive objects, and the same tendency is observed in the current period.
Foreign investors show a record interest in luxury housing in the UAE. Last year, the increase in demand caused a price increase, the objects rose in price by 40%. However, the rising cost of already expensive housing did not stop investors. For 2021 there was a record number of deals in the price category of more than $10 million. The average cost of such houses showed an increase of 9.2%, villas rose in price by more than 21%.
Over the past quarter of this year, the largest transaction in the Dubai real estate market was the sale of an apartment in the Burj Khalifa Zone 4, which is located in the city center. The cost of housing amounted to 73 million dirhams. In second place was an apartment in Business Bay, the price of which was 69 million dirhams. Apartments in Palm Jumeirah were a little cheaper, with a deal of 63 million dirhams.
In the current quarter, the sale of a mansion in the complex Palm Jumeirah for 280 million dirhams is considered the largest transaction. Before that, the record amount in Dubai was considered the purchase of apartments for 185 million dirhams in 2015.
It should be noted that participants in the market of elite real estate expect a further increase in prices. Therefore, many owners of such housing are in no hurry to put objects on sale. According to analysts, by the end of the year, the cost should grow by 10-15%. At the same time the number of transactions increases. Since the beginning of 2022, there was a 30% increase in concluded sale contracts compared to the previous period.
Prices per square meter have risen significantly mainly in the elite areas of Dubai, such as Palm Jumeirah, Dubai Hills, and others. Here the increase in rates is more than 35%.
On average a day on the real estate market in the metropolis is about 300 transactions of buying and selling, their amount is about 1000 million dirhams. In addition, the purchase of housing is carried out through mortgage lending, its amount is recorded in the range of 85 million dirhams per day. Buyers are interested in villas and apartments, and a number of investors are buying plots of land for further development.
Evaluating the demand for luxury real estate, developers are actively implementing new projects to meet the needs of customers from all over the world. Residential property in Dubai is popular among foreign citizens who buy properties for their own residence or for investment purposes.