With 45 properties selling for Dh15 million or more in the first 15 days of 2023, it is not a slow start for Dubai’s real estate market. According to the common opinion, the first quarter of 2023 will be just as active for high-value residences as the full year of 2022, when Dubai broke new records for both the quantity and price of these sales.
In total, there were almost 1,200 deals involving properties worth Dh15 million or more in 2022. This compares favourably to the average of 150 such transactions per year between 2012 and 18 transactions.
“There’s no slowdown in demand and deal flow that anyone can see for now,” said Firas Al Msaddi, CEO of fam Properties. “Dubai property sales of high-end homes have got off to an exception start in ’23 – it’s unlikely demand is going to slacken.”
‘Ticks all boxes’ for billionaire buyers
Market analysts’ worries about the potential duration of Dubai’s premium housing demand have thus far proven unjustified. According to DXBInteract.com, sales of slightly under Dh10 billion were registered in the first 10 days of January in the total real estate market.
“Based on current demand, I believe the luxury property segment in Dubai is rock-solid,” said Al Msaddi. “Luxury projects built in the most desired locations of Dubai will continue to be world-class trophy assets, similar to what we see in Central London. Fundamentally, Dubai ticks all the boxes for billionaires around the world.
“Moreover, most of the luxury projects launched in Dubai in the last two years are branded residences.”
Yes, and new ones are always entering the market. Newly released The Ritz-Carlton limited edition homes with price tags of Dh200 million were just made available by the developer MAG. Each of the early examples of these branded houses, which were being constructed close to Dubai Creek, had a price tag of Dh177 million.
“There’s no slowing down in demand for Dubai luxury homes – if anything we are seeing increased demand because buyers want to close sales and not have to keep looking around”– Firas Al Msaddi of fam Properties
Launch – and sit back
“Branded residences such as the Ritz-Carlton, those at Atlantis The Royal Residences, and the On Za’abeel (near Dubai World Trade Centre) are what’s getting a lot of buyer attention,” said an estate agent. “There remain instant cash buyers for such property in Dubai.”
Expensive mansions and valuable plots on the Palm, Dubai Hills, Jumeira Island, and Emirates Hills found those buyers quickly the previous year. Surprisingly, branded homes in high-demand neighbourhoods were just as popular. For instance, 69 Six Senses Residences on the Palm were sold, generating sales of Dh2.1 billion, according to data from DXBInteract.com.
When you consider that the 124 properties sold on the Palm in 2022 brought about Dh4.5 billion for their sellers, that holds up rather well. Or that 112 transactions totalling Dh2.7 billion took place in the Dubai Hills neighbourhood known as “Address Hillcrest.”
“Branded residences in Dubai still have lots more to deliver demand-wise; this will be where some serious price action is likely in 2023,” said an estate agent. “Discounts and incentives on payment plans are happening in the entry (Dh550,000 plus) and mid-market (from Dh1.2 million) categories. We are not seeing much of that in luxury home sales.
“Developers or sellers may no longer be able to jack up their asking prices overnight on luxury homes – and they would do well to close these deals in the shortest time. Beyond that, everything points to another record year for luxury property demand in Dubai.”