Dubai: It is the AED 40 million and over homes that are reporting some of the biggest sales activity in Dubai’s property market since 2015. If this pattern continues – and chances are that they will – it could broaden itself for pretty much this decade, as per another update from Knight Frank, the consultancy.
If there were 19 transactions in the whole of 2020 in the range of AED 40 million and more, there were already 22 such transactions between January and May this year. And estate agents are discussing ever-rising interest for pricey homes on the Palm, Dubai Hills, and at some of the other neighborhoods as well.
“We appear to be in the midst of a spectacular post-COVID-19 rebound in luxury home sales,” said Faisal Durrani, Head of Middle East Research at Knight Frank. “Even if we step back to the period before the pandemic, the number of home sales in this price bracket so far this year is at the highest level since 2015. Homebuyers are clearly oozing with confidence when it comes to the emirate’s uber-luxury homes market.”
What’s interesting is that a lot of transaction is bringing investors looking for their first exposure to luxury homes in Dubai. The fact that Dubai’s property market had undergone a 20-30% dip in values over the last three years has been another factor driving purchasers to get their decisions now rather than wait and, potentially, having to pay higher in three to six months.
Eyes on Dubai
Being cheaper is actually playing to Dubai’s advantage now. “The world’s wealthy have their eyes firmly set on the city, where a million dollars gets you five times more residential real estate than London, New York, or Singapore – which means accessing a luxury lifestyle is relatively more affordable”, said Durrani.
“With over 42,000 million dollar homes, Dubai is second only to London, where luxury home sales have also rebounded.”
Interestingly, many AED 40 million and over transactions took place in the secondary market. This could be the cue for developers in Dubai to start loading up luxury projects once again.