Experts are confident that Dubai’s luxury property market will continue to grow despite the expectations of a slowdown.
Knight Frank’s global real estate consulting firm, Knight Frank, stated that the buying patterns of buyers are more likely to be “genuine users of real estate than speculative investor”.
Durrani, a Business Recorder reporter in Dubai, said that over the past 18-24 months Dubai has become the largest market for home sales of $10 million or more. High net worth individuals are looking for luxury beachfront properties.
According to the recent Destination Dubai report by Knight Frank, Dubai recorded nearly the same number as London and New York of home sales over $10 million in the past 12 months. The report highlighted all the factors that make the emirate a desirable place to work, live and invest.
The luxury market is the winner
To understand why the market for luxury goods has performed so well, one must go back to when the pandemic began.
“UAE response to pandemic helped definitely.” The UAE was consistently the most vaccinated country in the world, and this accolade led to Dubai becoming one of the first major cities in the world.
Many of these people experienced the soft factors that make Dubai a desirable place to live and to work.
Demand exceeds supply
The result is a glut in the city.
“We also began tracking the volume and prices of homes across Dubai. The number of listings in the city were down 23% YoY. But if you jump up to the $10 million market, we see a 50% drop YoY.
“Developers race to keep up. The people who buy the houses aren’t buying them to sell. “They are buying them for personal use.”
In a recent report by Knight Frank, Destination Dubai, 49% of HNWIs with personal net worth over $20 million would like to invest in real estate in the UAE.
Another 30% of respondents would like to purchase property in the country within the next two to five years.
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