Dubai Luxury Real Estate
For those who are interested in luxury real estate, Dubai is the ideal destination. Whether you’re looking for an apartment in a luxurious development or a spacious house for your family, you can find the perfect property in a variety of locations. You can also expect a high return on investment for your purchase since the city has seen a rise in demand for off-plan properties.
Demand for off-plan properties has been robust
Demand for off-plan properties in Dubai has been robust over the last few years. Off-plan properties are becoming increasingly popular, especially with first-time buyers.
The UAE’s diverse range of residency options, from the government’s golden visa initiative to the country’s favorable policies, has encouraged a spike in demand. This influx of capital has also spurred a resurgence of interest in the luxury property market.
Demand for off-plan properties in Dubai has also outstripped supply in the emirate. In August, off-plan sales totaled USD 1.3 billion, the highest monthly number in two years. With the increase in demand, developers are now offering more space in apartments to accommodate the future request.
The demand for off-plan properties in Dubai is set to continue in the coming year. Prices are rising, albeit slowly, and are likely to stay that way. However, global headwinds could put pressure on prices.
Despite the increase in off-plan property prices, there are still plenty of opportunities for investors looking to buy property in the emirate. Quality products provide stable homes for families, as well as sustainable returns over the long term.
Developers are focusing on sustainability and wellness
There is a growing focus on health and wellness in Dubai’s real estate sector. This is being driven by increased recognition of the importance of the unique environment. According to a recent study, the design and features of buildings have a positive correlation with aspects of well-being.
Luxury real estate developers are implementing sustainability and wellness initiatives in their development projects. These efforts aim to improve health and well-being, which in turn will promote good health and a healthy community.
A global wellness real estate company, Delos, is working with Dubai’s Land Department (DLD) to ensure that future developments are built to support a healthy lifestyle. They are integrating science-backed policies with relevant technology to create healthier environments. The company’s upcoming Tranquil Wellness Tower will feature 60,000 square feet of health-enhancing amenities.
Developers are incorporating sustainable and wellness elements into their buildings to increase tenant retention. This includes installing electric car charging stations. By providing such amenities, developers can foster a sense of community among residents and contribute to the UAE’s green agenda.
Return on investment is more than 3%
In the world of real estate, the return on investment for Dubai luxury property is among the highest. The average annual ROI varies from 5 to 8 percent, which is higher than the return on investment for New York or London.
According to the Global Property Guide, Dubai has one of the most lucrative ROIs for investments. This is because the city offers excellent quality at the lowest price bubble risk.
While the ROI of buying a new home in the emirate is relatively high, investors are also finding the prospect of shared ownership of Dubai homes as a profitable investment. With capital still flowing into the market, analysts believe that prices are set to continue to rise.
One of the top areas for real estate investment in Dubai is Jumeirah Lake Towers, a high-rise apartment complex in the heart of Dubai. Residents have access to a variety of amenities, including wellness and entertainment complexes.
Rebounding in 2021
There is a strong likelihood that Dubai luxury real estate will continue to grow in 2021 and beyond. This is due to a wide range of factors. The UAE economic outlook is favorable for buyers, with mortgage interest rates lower than in the United States. In addition, foreign investors and end-users are continuing to move to the region.
While Dubai’s prime real estate market has risen significantly in recent months, it remains a long way from its peak. Supply still outstrips demand, which will keep the recovery fragile.
But the current demand for residential property is primarily a result of pent-up demand and is expected to lead to more price gains. Demand is primarily coming from ex-pats looking to relocate or to get a second home in Dubai, along with wealthy foreigners, end-users, and overseas investors.
The market has seen a significant rebound, with prices increasing by more than 40 percent in the last year. According to a Knight Frank Middle East report, the number of sales in the $10 million plus range rose to 22 in the year. However, supply in the luxury housing sector is relatively limited.