Supported by the desire of the wealthy to buy and invest in the emirate
Realtors: The demand for "luxury real estate" exceeds the supply in Dubai
Principal property prices in Dubai have jumped by 89% in the past 12 months.
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Realtors expect the demand for luxury residential and commercial properties to witness a strong momentum during the coming period.
From the source
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Realtors reported that the demand for Dubai real estate, in all its categories, is constantly increasing, reducing the volume of supply in the market.
In statements to "Emirates Today", they confirmed that the rate of demand growth varies from one category to another, as it grows at natural rates in the middle housing categories, while it grows at a great pace in the luxury housing categories, in which demand exceeds the supply of them, and at unprecedented rates, they are expected The demand for luxury residential and commercial real estate will witness a strong momentum during the coming period.
Prime property prices in Dubai have jumped by 89% in the past 12 months, boosted by the influx of wealthy buyers who have bought (second homes) in the city.
The results of an analysis conducted by "Luxpetit Sotheby's International Realty", based on data from the Dubai Land Department, showed an increase in the volume of apartment sales by 4.75% during the third quarter to reach a total of 16.7 billion dirhams, and branded apartments accounted for the largest share in terms of size. .
luxury real estate
In detail, the executive partner of “Luxpetites Sotheby’s International Realty”, Tayseer Al-Saati, expected that “the demand for luxury residential and commercial properties will witness a strong momentum during the coming period, extending from six to 12 months, based on the figures that show that real estate prices are still It is witnessing a rise, and the continuity of demand and sales, in light of the high prices, is clear evidence of its validity.”
He added, “There is currently a gap in the market, as the demand for luxury properties exceeds the supply.
Figures show that more than 70% of luxury properties have been sold, in projects that are still under construction.
This gap will only disappear with the launch of new projects and an increase in supply in 2023.”
He continued: "The demand for luxury real estate comes from people who intend to settle, live and invest in Dubai, while it was previously focused on apartments consisting of one or two bedrooms, with the aim of investing or renting them, and this is due to several reasons, most notably the public confidence in the state, and the degree of security and safety. high, and ease of obtaining residence and doing business.
sales growth
For his part, Head of Middle East Research at Knight Frank, Faisal Durrani, said, “The value of sales in residential properties in Dubai grew by 29% in the third quarter alone, driven by the continuous influx of high net worth individuals, who are heading to key areas. In Dubai, in search of (second homes).
He pointed out that real estate sales, whose price exceeds 37 million dirhams, reached a new high, and the first nine months of this year witnessed the conclusion of 152 high-quality sales deals, exceeding 93 deals recorded last year.
He added: "In another shift from previous cycles, the number of planned new luxury homes has fallen below the demand for them, which has led to a shortage of sea-view homes, in particular."
Durrani said: “Only eight new villas are scheduled to be built in the Jumeirah district of Dubai, between 2023 and 2025.
The developers have not yet rushed to bring new projects to the market, as we have seen in the past, to take advantage of the huge demand for luxury housing.”
positive trend
For his part, the General Manager of Awad Gargash Real Estate Company, Raad Ramadan, said that “the demand for buying real estate in the market is greater than the supply, and this is evidence that the strength of real estate in Dubai has taken a positive turn in the real estate stock,” explaining that “Dubai is heading towards Towards distinctive real estate, and more demand for (townhouse) real estate.”
Ramadan added, “The demand for small villas is great, and that the demand in the market is more than the supply,” explaining that “the market will not reach the equation (the balance) between demand and real estate supply,” noting that by 2023 the market will witness a distinct real estate boom, as You will see a big improvement.
growing demand
The General Manager of Awad Gargash Real Estate Company indicated that the demand for luxury real estate exceeds the supply of it, in addition to the fact that the real estate market is witnessing an increasing demand since the beginning of last year until now, and that the real estate stock is in need of additional quantities, with the continuous demand by investors for real estate Especially villas, it is expected that the market will witness increasing demands for real estate during the coming period, and therefore the supply is small and the demand is large, and the real estate equation in Dubai, is overshadowed by demand, and the market is currently on the rise.
He continued, "With regard to prices, they will witness more rise next year, although not at the same pace that we have witnessed during the past two years, and they will reach the stage of equilibrium in 2024."
new projects
In turn, the Chairman of the Board of Directors of Al-Waleed Investment Company, Muhammad Al-Mutawa, said that "previous expectations indicate that the point of parity between demand and supply in the real estate sector will be reached in the next two years."
Al-Mutawa pointed out that the demand for luxury real estate exceeds the supply of it, pointing out that the most important factors supporting the growth of the real estate sector in the current period lie in the legislative incentives provided, the influx of visitors to Dubai, as well as the facilities of real estate developers, and the improvement in the return on investment in Dubai real estate.
Strategic Think
In the same context, the managing director of Harbor Real Estate Company, Muhannad Al-Wadih, said that “the increase in demand for real estate in Dubai will continue during the coming period, due to the population increase in Dubai, and it is summarized in the strategic thinking pursued by the emirate, which led to recording positive results. Increasing demand and immigration of people of mind and wealth to Dubai, and increasing demand for the real estate sector.”
Al-Wadiya added that with regard to the supply, we did not witness the launch of huge projects, but we are witnessing new stages and units in small numbers, explaining that we will reach a stage where prices will rise due to supply and demand.
Unprecedented performance
Walid Al-Zarouni, Chairman of the Board of Directors of "W Capital" real estate brokerage, said, "The real estate market has achieved unprecedented performance since the beginning of this year, setting another record amid exceptional growth in demand driven by a number of positive factors, in light of expectations to continue positive indicators during the period. The remainder of this year, with a recovery, prosperity and steady growth in real estate sales to exceed 230 billion dirhams by the end of 2022.”
He pointed out that the Dubai real estate market continues to receive great support from the unlimited facilities and qualitative initiatives launched by the government of the emirate, represented in the policies to support residents, new residency laws, and the residence of entrepreneurs and investors, in addition to the infrastructure that made Dubai the leader in the field of real estate at the global level. And cemented its position at the forefront of global destinations as the best place to live, work and invest.
Al-Zarouni explained that the increase in the return on real estate investment by a large percentage encouraged the influx of foreign investors to buy, adding that the market witnessed a radical change, especially with the noticeable shift in investments during the past few years, as it became attracting investors and foreign capital after it was focused on local investors, to witness A significant increase in the sale of luxury and distinctive properties in conjunction with the increase in the investments of high net worth individuals, and high income, thanks to the presence of advanced infrastructure along with a distinguished lifestyle that includes the best hotels and restaurants in the world and the exceptional amenities they provide.
prime real estate
Prime property prices in Dubai have jumped 89% in the past 12 months, boosted by an influx of wealthy buyers who have bought "second homes" in the city, according to property consultancy Knight Frank.
The high demand has led to an increase in villa prices by more than 100% in high-end neighborhoods such as Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island.
This transformation represents a significant departure from the emirate's two previous market cycles, which were largely related to buy-to-let.
In the short to medium term, Knight Frank expects prices to grow between 5 and 7 percent by the end of 2022.
The results of an analysis conducted by Luxpatite Sotheby’s International also showed that Mohammed Bin Rashid City, one of the luxury areas in Dubai, witnessed an increase in the number of units sold on a quarterly basis by 67.7%, followed by Business Bay (59.84%) and Zabeel (30.9%). ).
More than a third of the apartments in Business Bay were sold, with a total of 2,420 units.
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