Hundreds of buyers waited all night outside the office of a developer in Dubai in hopes of snatching up opulent waterfront residences, in the most recent indication of the real estate frenzy swallowing one of the most popular markets in the world.
Government-backed Nakheel sold all houses on offer in the first two phases of the Bay Villas development within hours. With prices starting at US$1.2 million apiece, the project on Dubai Islands will include more than 500 homes in total. The most expensive properties will cost upwards of US$4 million.
Due in part to a global population influx, Dubai has experienced a spike in demand for real estate in recent years. Because of this, the city has been able to recover from a slump that lasted for years; despite mortgage rates being at their highest points in 20 years, prices are approaching record highs.
The ongoing strength is evident in the recent launches, a few of which have sold quickly. Last year, Nakheel—best known for creating the man-made palm-shaped islands in Dubai—launched a project that saw buyers wait in 38-degree heat for US$5 million homes.
The increase in demand marks the end of Nakheel’s recovery. In 2009, it was the epicenter of a real estate bubble that almost brought Dubai to its knees, but since then, it has streamlined operations and reduced expenses.
The lengthy queue of brokers and investors outside Nakheel’s sales office for its most recent project began to form overnight, causing the police to intervene and station patrol cars nearby. The only brokers permitted to come back in the morning were those who received tokens. BLOOMBERG
