Pages Navigation Menu

Dubai luxury real estate market best in the Middle East

Modern villa with pool, night scene

 

A recent report by veteran real estate consultancy Knight Frank reveals that Dubai’s luxury real estate market was the best performing in the region.

Luxurymena.com speaks with industry professionals to evaluate the current market.

“While there has been a slight slowdown in the market condition, one could argue that there is a possible correction in the AED3-8 million sector. The AED10m+ luxury UAE market continues to represent fantastic value for money. The size, location and quality of finish easily surpass similarly priced properties in other major cities in the world,” explains Lukman Hajje, chief commercial officer at propertyfinder.ae.

According to the International Property Show, the UAE property transaction value has continued to increase 38 per cent year-on-year.

With numerous announcements of new luxury real estate developments in Dubai continuing to arise, the cosmopolitan city does not seem to be stepping down anytime soon.

“Dubai is setting up to have a solid revenue stream from the Tourism Industry. The Mall of the World being one of the major launches talked about over the last few weeks is supposed to draw 180 million visitors a year,” explains Ann Boothello, property product marketing manager at Dubizzle. “With projects like this, Dubai is building a safety net should the real estate market experience fluctuations. Projects like this also serve as a driver for investors and those looking to relocate to more ‘prosperous’ cities in the world where they can find better employment opportunities and enjoy a more lavish lifestyle.”

According to Knight Frank’s Dubai Prime Residential Report for spring 2014, $1 million can buy approximately 146 square metres of luxury living space in Dubai – which accounts for around six times more than in London, seven times more than in Hong Kong, and 10 times more than in Monaco.

“In Q2 of 2014, 11 per cent of all buy searches conducted on Propertyfinder.ae were for properties priced above AED10 million,” explains Hajje.

Figures released by Dubai Land Department express that in Q1 of 2014, 133 separate nationalities invested in Dubai’s real estate market – with Indians remaining the top foreign real estate investors, spending approximately AED5.9 billion, followed by the British and the Pakistanis.

“Overseas cash buyers looking for second homes and moneyed individuals relocating from unstable countries in the region are currently dominating, and the Chinese have also been more prevalent than ever before,” concludes Hajje.

Tags: , , , , , , , , , ,