Market Trends of UAE Luxury Residential Real Estate Industry
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, supported by rising demand and interest from the international elite. The year 2021 saw increased activity in the luxury housing sector as it recorded a 40% price surge compared to the preceding year despite the pandemic challenges.
Luxury property owners in Dubai are delaying selling homes as a 10 to 15% jump in annual price gains is expected in prime areas. It is because the emirate recorded a 30% jump in transactions of luxury homes in January 2022, with 4,083 deals. The luxury property market recorded a substantial price increase of 35.1% per sq ft, especially in prime areas, including The Palm Jumeirah, Jumeirah Bay, District 1, and Dubai Hills.
Maintaining its reputation for selling ultra-exclusive and luxury villas, The Palm Jumeirah sold the most expensive villa worth AED 87 million (USD 23.68 million) during Q1, 2022. Another villa valuing AED 30 million (USD 8.17 million) was sold on Island 2. It was followed by luxury villas in Dubai Hills Estate, Nad Al Sheba Third, and Al Hebiah Fourth, sold for AED 29 million (USD 7.89 million), AED 22 million (USD 5.99 million), and AED 10 million (USD 2.72 million), respectively.
The luxury property market was supposed to retain its upward trajectory in 2022, with more upscale buildings and projects rising. 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.
Rise in Luxury Concierge Real Estate Driving the Market
The year 2021 was a landmark one for Dubai real estate market. Not only did it rebound, but it also posted record-breaking figures thanks to overseas investors, low-interest rates, and strong demand. The Dubai Land Department registered an astounding 71% growth in the value of total transactions in 2021 compared to 2020, shattering a 12-year record. Luxury Concierge Real Estate (LCRE) contributed to this performance, which is a channel partner with leading property developers in Dubai.
In 2021, LCRE clocked sales worth AED 1.3 billion (USD 353.8 million) at the Dubai Land Department. Sales with Emaar Properties alone stood at approximately AED 383 million (USD 104.25 million), followed by Damac, which was about AED 203 million (USD 55.2 million).
Damac selected ten companies to join the elite round table group. It was based on the long-term association with the reputed brand and 2021 sales. This group gets access to Damac's many exclusive privileges, such as up-front product launch information, exclusive inventory in landmark projects, and a private office in Damac Sales Centre. This connection and access to big-name developers are advantages prospective buyers get when choosing LCRE.
With the UAE managing the Covid-19 pandemic exceptionally well, Dubai's attraction as a real estate investment destination grew. LCRE could finally capitalize on all its hard work and contacts established over the years. The company now includes a high-net-worth client base from across the globe.
