Dubai: It was a bit less expensive of time in Dubai, Delux property space, as the 2020s most expensive deal, was for about Dh75 million for a home space and that too in Dubai Hills.
In fact, the best 10 deals of last year were fluctuating between DH75 million sale and a Dh48 million one, which was the cost for a home in Marsa Al Arab in Umm Suqeim.
In comparison this amount to the Dh 98 million sales in Dubai Hills in the year 2019, which was recorded as the costliest dale on a residential property in Dubai of that year. Also on the second and the third position places were Dh98 million price tags, which is according to the listings from Luxhabitat Sotheby’s International Realty. At Dh79 million, and even the 10th place was in higher places than the top deal in 2020.
So, the question arises that are the wealthy investors becoming more concerned when it comes to choosing the property assets in Dubai? This is not how Alex Stern, Senior Consultant at Luxhabitat Sotheby’s International Realty, sees 2020 trends.
“Deals are being closed within the 5-10 percent margin of the asking price – which has always been the case,” he said. “The ultra-luxury sector has historically been the most stable, even when all the other categories have seen corrections.
According to him, “Deals are being closed within the 5-10 percent margin of the asking price – which has always been the case. the ultra-luxury sector has historically been the most stable, even when all the other categories have seen corrections.“High net-worth Western investors are being encouraged to come to the UAE due to global economic uncertainty and pandemic fluctuations. At the moment, the majority of ultra-luxury buyers are from outside of the UAE.”
Heightened interest
Others in the local property market echo these sentiments, saying that demand for luxury homes in Dubai is “running at steady”.
As asked, the people in the local property market share their opinion saying that the demand for luxury homes in Dubai is “running at steady”.
An estate agent says “Maybe the deals are taking longer to complete, that’s probably the only change that the COVID-19 situation has created,”. “Because plot sales at locations such as Dubai Hills and MBR (Mohammed Bin Rashid) City are still in demand, and these will eventually turn into super-premium mansions.”
Rich pickings
Also, MBR city had four positions in 2020 top 10, whereas the Emirates Hills could secure only two. There was a Bvlgari branded residence that was sold for Dh48.25 million and is placed eighth in the rankings.
As for Dubai Hills, this was the straight second year in which the location has secured its title as the destination where the huge-deals take place.
The ultra-luxury sector has historically been the most stable, even when all the other categories have seen corrections – Alex Stern at Luxhabitat Sotheby’s International Realty
Not discounts, incentives
According to Niraj Masand, Director at Artha Realty, developers are throwing in quite a few incentives even at the top end of the market.
“For instance, there are Dh16 million-plus homes being sold by a branded developer,” he said. “According to Niraj Masand, who is the director at Artha Realty, the developers are giving in quite little incentives even at the top end of the market.
He added” For instance, there are Dh16 million-plus homes being sold by a branded developer” and also “While the developer hasn’t brought down the asking price, there are waivers offered on service charges that would save the buyer about Dh1 million over a five-year period.
“So, instead of upfront discounts, luxury developers are throwing in quite a few incentives. There are quite a few buyers who would be interested in these, even if they happen to be looking at Dh15 million or Dh20 million-plus properties.”
Right now, the Dh5 million to Dh10 million category is where a lot of talks are taking place between prospective buyers and sellers – Niraj Masand of Artha Realty
Increasing offplan won’t help
Market sources reckon 2021 will likely be another quiet year for offplan launches, even in the premium end of the residential market. “said a developer. “Demand is there for luxury homes in Dubai… but it will need careful managing. New offplan launches are not the answer just now.”
Market sources reckon 2021 will most likely be one more quiet year for offplan launches, also even in the premium end of the residential market. And according to a developer “There’s still lots of luxury homes getting built – any further supply will only harm current valuations and also Demand is there for luxury homes in Dubai… but it will need careful managing. New offplan launches are not the answer just now.”