Spike in Demand for Luxury Property in Dubai: Know It All
Compared to global cities worldwide, the prices of luxury properties in Dubai are among the lowest. Luxury homes in Dubai cost 40% less than luxury homes in Singapore, and 50% less than those in Paris and Moscow.
According to an article by Khaleej Times, 82% of the secondary market sales were for apartments. At AED 3.34 billion, Dubai Marina ranked first for most transactions, followed by the Palm Jumeirah at AED 2.32 billion, and then Downtown Dubai at AED 1.54 billion. Combined, these three prime locations totaled 42% of the secondary prime residential market.
In the first and second quarter of 2018, Dubai’s secondary residential market has witnessed AED 14.4 billion and AED 12.1 billion in sales. In 2017, the real estate market saw an increase of 10% for prime residential off-plan sales compared to 2016.
According to the same article by Khaleej Times, the luxury market is seeing more value-conscious buyers. Now, more than ever, buyers care more about design, community, locations, impeccable finishing and amenities. Most buyers are looking to live in the property or are purchasing it as an additional luxury Dubai home.
More than 200 nationalities purchased property in 2017, according to the Dubai Land Department (DLD). Demand in Dubai’s luxury real estate market is increasing from around the world, specifically among Europeans, North Americans, Chinese and Asian nationalities, as per a report by Knight Frank.
Why is Demand Increasing for Luxury Property in Dubai?
Set by the Gulf, Dubai is a prime spot for living a luxury lifestyle. With attractive luxury property prices in Dubai compared to international markets, the city features the world’s tallest tower and largest aquarium – to name just two of its many famous landmarks.
Visited by celebrities from across the world and a travel destination for thousands, the city’s high towers, seven-star hotels and world-class restaurants are all that make the city a popular choice for buyers.
As Dubai approaches Expo 2020, investments in infrastructure are increasing and more smart services are becoming a norm for residents and locals alike. Such factors are making Dubai a more attractive place to buy luxury property.
Impact of the 10-Year Visa
His Highness, Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai announced that global investors will now be eligible for a 10-year residency visa scheme as well as 100% ownership of their company in the UAE. Other professionals who can avail this extended visa include investors, as well as specialist doctors and engineers. Addedly, students who are top-performing are also eligible.
This novel system will open newer possibilities and a door for investors and specialists in technical, medical, scientific and research fields, in addition to innovators and entrepreneurs.
Such opportunities allow foreign investors to see a lengthened future of their stay in the UAE, making them more open to buying a luxury property in Dubai as they can clear their mind off the future legalities.
If you are interested in buying your next luxury home in Dubai or want professional real estate advice, do not hesitate to send us an email at email@example.com.