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Post-Expo landscape looks bright for Dubai luxury home market

Dubai’s luxury home market is poised to thrive and continue the high momentum in 2022 as it is supported by rising demand and interest from the international elite

Luxury property owners in Dubai are delaying selling homes as a 10 to 15 per cent jump in annual price gains are expected in prime areas as the emirate recorded a 30 per cent jump in transactions of luxury homes in January 2022 with 4,083 deals.

According to the Zoom Property Insights, a substantial price increase of 35.1 per cent per square foot recorded in the luxury property market, especially in prime areas including The Palm Jumeirah, Jumeirah Bay, District 1, and Dubai Hills.

“Dubai’s luxury home market is poised to thrive and continue the high momentum in 2022 as it is supported by rising demand and interest from the international elite,” the real estate consultancy said, adding that post Expo landscape looks bright for the emirate's luxury home market as it is brimming with new opportunities for buyers and investors.

Signalling the property market upswing, Dubai real estate market recorded 336 sales transactions worth Dh995.74 million and mortgage deals of Dh81.04 million, in addition to eight gift transactions amounting to Dh46.39 million on Tuesday, data released by the emirate’s Land Department (DLD) showed.

The sales included 282 villas and apartments worth DhD619.88 million, and 54 land plots worth Dh375.86 million, while the mortgages included 47 villas and apartments worth DhD68.47 million and eight land plots valued at Dh12.56 million, bringing the total realty transactions of today to over Dh1.1 billion.

Bellview Real Estate said on Thursday it has sold a custom-built ultra-luxury mansion on the Palm Jumeirah, set across a sprawling 33,000 square feet, for Dh280 million to an unnamed buyer, making it the most expensive property transaction done in Dubai. The previous record of Dh185 million has remained unbeaten since 2015.

“The luxury home market has started on a high note with a significant jump in transactions of 30 per cent on a year-on-year basis as it recorded 4,083 deals in January 2022. The average property prices [per square foot] also witnessed an increase of 35.1 per cent during the month,” the Zoom Property Insights said.

The year 2021 saw an increased activity in the luxury housing sector as it recorded a 40 per cent surge in prices compared to the preceding year despite the pandemic challenges. A record total of 93 homes worth $10 million or higher were sold in 2021 as average residential values climbed 9.2 per cent, with villas showing a major jump of 21.2 per cent.

Ata Shobeiry, CEO at Zoom Property, said the luxury property market will continue its rebound in 2022.

“The luxury property market will retain its upwards trajectory in 2022 with more upscale buildings and projects on the rise. Consequently, wealthy foreign investors will show more interest in the sector. The market, on the whole, will benefit from an influx of overseas investors as there’s an increase in demand from Ukrainian and Russian buyers, as well," he said.

Moreover, he said visa reforms, expatriate-friendly policies, and high profit earning potentials continue to attract investors from across the globe, making Dubai a lucrative market for real estate investment.

The most expensive apartment was sold in Burj Khalifa Zone 4, Downtown Dubai, for Dh73 million during the first quarter of 2022. It was followed by an apartment in Dorchester Collection Dubai located in Business Bay. The ultra-prime apartment was sold for Dh69 million.

Next, The Royal Atlantis Resort and Residences in The Palm Jumeirah sold a high-end apartment for Dh63 million. Luxury apartments in W Residences Dubai and Serenia Residences Building B, both located in The Palm Jumeirah, were sold for Dh57 million and Dh50 million, respectively.

Maintaining its reputation for selling ultra-exclusive and luxury villas, The Palm Jumeirah sold the most expensive villa worth Dh87 million during Q1, 2022. Another villa valuing Dh30 million was sold in Island 2. It was followed by luxury villas in Dubai Hills Estate, Nad Al Sheba Third, and Al Hebiah Fourth, sold for Dh 29 million, Dh22 million, and Dh10 million, respectively.

— issacjohn@khaleejtimes.com