Published On: November 24, 2023Categories: Real Estate2.5 min read496 wordsViews: 29
Dubai’s luxury real estate market has experienced a significant boost over the past three years, solidifying its position as a top global destination for high-net-worth individuals. The city’s effective response to the Covid-19 crisis, combined with visionary developments and a growing demand for luxury properties, has propelled Dubai into the spotlight as a haven for families and businesses seeking stability and opportunity.
According to a report from Prime by Betterhomes, October marked a standout period for Dubai’s real estate market, with the highest number of secondary luxury transactions recorded for the year. Secondary sales nearly tripled compared to the previous month, while off-plan luxury sales remained consistent. Although off-plan sales (Oqood transactions) decreased from 84 in January to 22 in October, secondary transactions surged from 67 in January to 277 in October. In terms of value, Oqood transactions stood at Dh1.028 billion, while secondary transactions reached Dh6.757 billion, as per Betterhomes’ data.
The increased demand for luxury properties in Dubai can be attributed to various factors, including visa reforms, entrepreneurial incentives, and cultural advancements. Ambitious plans for waterfront developments, such as the Dubai Islands project and the revival of Palm Jebel Ali, are set to redefine the city’s landscape. A notable trend is the rise of branded residences, providing unmatched quality and recognition. With continuous innovation and a personalized approach, Dubai maintains its leading status in the global luxury real estate market.
Palm Jumeirah emerged as the most transacted luxury community in October, followed by MBR City and Palm Jebel Ali. Transaction activity experienced a decline in Bluewaters Island, Business Bay, and Damac Hills.
The branded residential market saw an 80 percent surge in sales year-on-year, with over 2,000 units launched in 2023. Average prices per square foot for branded residences increased by 33 percent since December 2022.
Investing in a luxury branded residence not only addresses concerns about product quality but also ensures the highest standard of finishing, especially for off-plan purchases. These developments come with a solid reputation and broad market recognition, significantly enhancing prospects for resale and rental. The average price per square foot for branded residences in Dubai rose by 33% since December 2022, reaching an impressive Dh4,188 ($1,140).
Top luxury developers in 2023 include H & H, Omniyat, and Majid Al Futtaim, with notable projects like Baccarat Downtown, Orla Infinity, and Lanai Island & Serenity.
Louis Harding, Managing Director at PRIME by Betterhomes, noted, “Dubai’s dynamic growth, robust economy, and favorable business environment make it a prime destination for high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals.” He emphasized the city’s exceptional amenities, such as world-class schools and healthcare facilities, as well as its vibrant multicultural atmosphere, attracting a diverse population of expats and local buyers looking to invest for wealth diversification and long-term prosperity.
Despite recent price inflation, prime real estate in Dubai remains approximately 5 to 6 times more affordable than in major cities like London, New York, and Hong Kong. This, coupled with ongoing developments like the Dubai 2040 Urban Master Plan, positions the city’s luxury real estate market as a compelling and promising investment landscape.
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