2024 will define Dubai's affordable luxury market, says Meteora Developers founder

Praveen Sharma, who oversaw the sellout of all three of his projects worth nearly half a billion dirhams after launching his company earlier this year, predicts 'new wave' amongst UAE’s new workforce

A leading Dubai property developer is predicting a significant shift in trends that will define Dubai's affordable luxury property sector in 2024 after a year that saw the emirate establish itself as one of the world's top markets for luxury homes.

Praveen Sharma, Founder and CEO of Meteora Developers that sold out its third project - Vita Grande worth Dh120m - within days of its launch earlier this month, said: "Dubai continues to lead the charts as the world's busiest market for luxury homes and that trend will only gain more credence in the new year with the continuous influx of high-net-worth individuals (HNIs) from different regions into Dubai. And all they want is a real estate experience that is safe, secure and yet exclusive in the centre of the world."

Looking back at how strongly Dubai's property market grew in 2023 - a year that saw Meteora launch their first two projects, both of which were sold out within days - thanks to a booming investor demand, he said: "If Dubai's economic momentum boosted investor confidence in 2023 then the slew of government initiatives like residency permits for retired, remote workers and digital nomads, and further widening of the 10-year golden visa programme to include more affluent residents became the catalyst for more investors turning to Dubai for long-term gains."

According to a report by Dubai Land Department last month, sales of homes worth $10 million or more in Dubai reached a record 277 in the first nine months of 2023, totaling $4.91 billion of transactions. Meanwhile over 116,000 new property transactions were made in the same time, up 33.8 per cent annually. The value of the deals also increased by 36.7 per cent during the period to about Dh429.6 billion amid continuing growth in the emirate's economy.

"We are happy to have made some contribution to those figures," said Sharma, hinting at Dubai's particular demand for affordable luxury housing. "Dubai is currently seeing a huge surge in demand for off-plan properties that accounts for biggest share of the overall real estate pie in the country. And the main attraction for the majority of young, upwardly mobile investors is the low cost of entry and appealing payment plans. It is one reason why we have seen all our projects sell out within days of their launch this year. And this is going to become a wave in 2024 with more young people entering the workforce in UAE, a significant chunk of them Emiratis besides other expat nationalities."

Increased workforce will lead to increased demands for affordable real estate

Incidentally, the UAE's Nafis programme - a government initiative driving efforts to grow Emirati participation in the private sector has helped to increase the local workforce by more than 50,000 since its launch two years ago. More than 82,000 Emiratis are now employed outside of the public sector - up 52,000 since the start of the campaign, according to Nafis. "Those numbers are only set to grow. Which means, there will be more young people with more disposable income and a greater sense of independence, ready to invest in real estate that's luxurious, yet affordable," explained Sharma.

Meteora Developers launched Vita Grande in the second week of December, post the success of their first two projects, The East Crest and 7 Park Central, both of which were sold out within days of their unveiling earlier in the year.

The two identical towers - worth over a combined Dh204 million and rising 19 floors above District 17 of Jumeirah Village Circle (JVC) - were launched one after the other in Q2 this year and sold out within days, reflecting a sharp demand for the affordable luxury segment in the emirate, according to the developers. Vita Grande is the newest addition to Meteora Developers' portfolio that consists of luxurious apartments located in the vibrant 860-hectare circle-shaped community located in Dubai's southeast surrounded by main arteries such as Sheikh Mohammad Bin Zayed Road, Al Khail Road and Hessa Street.

"Dubai has for long remained a global number one spot for affordable, luxury real estate. This despite the market recording the highest price jump in luxury homes in the January-to-June quarters," said Omar Al Amour, co-founder of Meteora Developers, reiterating the company's commitment to meeting the market's demand for quality luxury homes.

The Dubai real estate has experienced sustained demand and price growth for nearly four years in this, the city’s third freehold residential market cycle, according to property specialists Knight Frank.

Prices rose by an average of 5 per cent during Q3 2023, marking the 11th consecutive quarter of price growth. Apartment and villa prices are now up by 19 per cent and 18 per cent, respectively, on this time last year, but the market, crucially, remains some 8.1 per cent down on its 2014.

Vita Grande, like its predecessors, will feature a twin tower design, rising 250 feet above ground over 19 floors. Construction has already commenced, and the project is slated for completion by the end of 2024. The development is strategically located in District 17 of JVC, offering future residents sprawling parks, proximity to the Circle Mall, and a range of luxurious amenities.

Al Amour added: "There is no existing reason why we cannot deliver the entire project as promised. This reflects the buoyancy in the market, a strong investor interest in affordable yet quality luxury homes, and our commitment to over-deliver." The first two properties, East Crest and 7 Park Central, are set to be delivered next year.

Meteora Developers has a unique approach to construction and bookings. "Our construction policy continues with the third tower where we get the project lifted off the ground first and take bookings only after reaching a substantial stage," Al Amour explained. This approach, he feels, provides investors with a finished product that is cost-effective and cuts down the delivery time.

The Jumeirah Village Circle community, where Vita Grande is situated, is known for its accessibility to various areas of interest in Dubai, making it a prime location for residents.

Meteora Developers, led by Praveen Sharma and his Jordanian partner Omar Al Amour, has carved a niche in creating premium residential developments that offer modern living spaces with high-quality design, reflecting their innovation and excellence in the real estate industry.