Dubai's luxury real estate shines in front of foreigners.. and these nationalities are the most in demand

The British newspaper “Financial Times” said that the groups most in demand for luxury real estate in Dubai included Europeans looking for a sunny and low-tax life, bankers fleeing from the restrictions of the Corona virus in Asia, in addition to wealthy Indians looking for second homes and a long-term residence program, as it allows Dubai is the golden residence, not to mention the Russians who are looking for the few havens open to them since the war in Ukraine.

The newspaper stated that the luxurious "Atlantis The Royal" project, which is similar in design to the cubes of the game "Tetris", is among the newest landmarks on the Palm Jumeirah Island, which is home to the elite in Dubai.

And when the first of his 231 luxury homes came up for sale seven years ago, a two-bedroom apartment could be bought for just 5.5 million dirhams ($1.5 million).

But with demand soaring since the COVID-19 pandemic, investors are flocking to buy entire homes with swimming pools and balconies offering panoramic views for big bucks.

Last summer, a "penthouse" apartment in "Atlantis The Royal", consisting of 3 floors, was sold for 180 million dirhams.

The best places to stay

“2020 and 2022 were amazing years, as Dubai was considered one of those global destinations that dealt with Covid-19 very well, which put it on the map of the best places to stay,” says Philip Zubair, CEO of “Kreisner International”, the developer of the “Atlantis” project. .

The popularity of "Atlantis The Royal" is embodied among buyers who are taking advantage of the luxury real estate boom in Dubai, where a new generation of wealthy residents compete for a small group of luxury homes.

Rising prices

Prices are expected to continue to rise next year, according to Unique Properties, which indicates that the cost of prime real estate may increase by 13.5% in 2023.

The CBRE real estate group said that residential transactions in Dubai in the 11 months to November exceeded the record recorded in the same period in 2009. Meanwhile, rents rose by more than a quarter during the same period.

Emirates Hills is the ultra-elite destination in Dubai. Lee Burgh, executive partner in International Realty, says he sold 10 properties in Dubai Hills with a total value of 420 million dirhams this year alone. He added: “Dubai has always attracted millionaires. Billionaires, but now they are moving here and they want bigger homes.”

He noted that valuations in Emirates Hills were at an all-time high, while less than 5 percent of the more than 600 properties in the area are actually for sale.

Offers at Emirates Hills include a modern eco-friendly villa powered by solar energy in the most exclusive street of Emirates Hills, at a price of 349 million dirhams.

However, old villas that can be renovated are also popular, some of which have doubled in value since the pandemic, selling for 110 million dirhams or more.

Luxury offers

The increase in demand from wealthier buyers has convinced Damac, one of Dubai's largest real estate developers, to focus on luxury offerings.

Damac capitalized on this boom last year when it offered apartments in the Cavalli tower for 20 million dirhams, while penthouses were sold for 3 times that amount.

Hussain Sajwani, CEO of the company, said that he expects real estate prices in his new luxury project in the vicinity of the Dubai Industrial Canal to reach 70 million dirhams.

Sajwani said he expects an influx of new buyers from China, as Beijing continues to tackle the outbreak of the Corona virus, noting that the next prosperity will come from the Chinese.

Developers say the limited stock of luxury properties will ensure the boom continues, although new developments are expected to start soon, led by The Palm Jebel Ali, another island larger than the original Palm Jumeirah.

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