Dubai is closing in on becoming the world's most popular luxury real estate market, according to Unique Properties, one of the city's leading real estate agencies.
For the second consecutive year, the emirate was ranked number one in real estate consultancy Knight Frank's Premier International Residential Index (PIRI 100); the luxury segment in Dubai saw a 44.2 per cent price increase last year, the highest price increase in the world.
In 2022, 219 luxury homes worth US$10 million and above were sold in Dubai, totalling an estimated US$3.8 billion, however, investors remain unaffected. This momentum is expected to continue into 2023.
Following the sale of an ultra-luxury flat for AED410 million and a top-of-the-range villa for AED600 million last year, the second week of the month saw another noteworthy deal, with a flat and a villa sold for AED65 million each.
Interest in high-end areas such as The Palm, Emirates Hills and Jumeirah has also made Dubai the fifth most active city for property sales worth more than $25 million, with 26 transactions recorded in 2022. The government's careful handling of this epidemic and its liberal visa policy has succeeded in attracting more foreign buyers, translating into a significant increase in Dubai's property prices and sales transactions.
This development reflects the strong and growing demand for ultra-luxury properties in the UAE, especially given the influx of European investors who are increasingly turning to the country as a safe haven to protect their finances amidst the ongoing global turmoil.
Developers are accordingly launching new projects to meet market expectations, as recent reports indicate that affluent buyers are absorbing existing supply at unprecedented levels.
Arash Jalili, founder and CEO of Unique Properties, commented." Despite the global economic uncertainty, experts expect Dubai's real estate sector to remain stable throughout the year. Rising interest rates, inflation and the devaluation of emerging currencies may cool demand for residential real estate globally, but the UAE's property market is most likely to be an outlier. This is particularly true when one considers the UAE's forecasted population growth of 3-4% and the forward-thinking initiatives of wise leadership to put economic growth and the best interests of the country's residents and citizens first."
Dubai's ultra-luxury real estate market is a relatively new real estate sector in the country. The influx of high net worth investors has accelerated the growth of the emirate's prime real estate sector, with some experts predicting that the market could exceed US$35 billion in transaction value as soon as this year. Unique Real Estate's extensive market knowledge is guiding several transactions in the off-plan segment of Dubai's residential sector; the full-service, award-winning agency works with an international team of experts to facilitate resale properties, sales and commercial and leasing transactions.