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, according to the Zoom Property Insights.
The real estate consultancy said post Expo landscape looks bright for the emirate’s luxury home market as it is brimming with new opportunities for buyers and investors.
“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,” according to the Zoom Property Insights.
Luxury homes in demand
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.
According to Mr Ata Shobeiry, CEO at Zoom Property, 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. Moreover, 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,” Shobeiry said.
Top 5 luxury apartments sold in Q1, 2022
The most expensive apartment was sold in Burj Khalifa Zone 4, Downtown Dubai, for AED 73 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 AED 69 million.
Next, The Royal Atlantis Resort and Residences in The Palm Jumeirah sold a high-end apartment for AED 63 million. Luxury apartments in W Residences Dubai and Serenia Residences Building B, both located in The Palm Jumeirah, were sold for AED 57 million and AED 50 million, respectively.
Top 5 luxury villas sold in Q1, 2022
Maintaining its reputation for selling ultra-exclusive and luxury villas, The Palm Jumeirah sold the most expensive villa worth AED 87 million during Q1, 2022. Another villa valuing AED 30 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 AED 29 million, AED 22 million, and AED 10 million, respectively.
Delay in sales to boost profit
In a bid to earn higher profits, many owners of luxury homes in Dubai are delaying their plans of selling properties as prices are expected to increase even more. Particularly areas such as The Palm Jumeirah, Jumeirah Bay, District 1, and Dubai Hills are projected to see a 10 to 15 per cent jump in annual price gains.
According to The Zoom Property Insights, there’s a strong prediction of a record increase in the sales of AED 100 million-plus luxury homes in Dubai.