Dubai’s luxury home market to continue its golden run in 2022

Inayat-ur-Rahman, Business Editor

Dubai’s luxury home market is poised to thrive and continue the high momentum in 2022 as it is supported by rising demand and interest from the international elite, according to the Zoom Property Insights.

The real estate consultancy said post Expo landscape looks bright for the emirate’s luxury home market as it is brimming with new opportunities for buyers and investors.

“The luxury home market has started on a high note with a significant jump in transactions of 30 per cent on a year-on-year basis as it recorded 4,083 deals in January 2022. The average property prices [per square foot] also witnessed an increase of 35.1 per cent during the month,” according to the Zoom Property Insights.

The year 2021 saw an increased activity in the luxury housing sector as it recorded a 40 per cent surge in prices compared to the preceding year despite the pandemic challenges. A record total of 93 homes worth $10 million or higher were sold in 2021 as average residential values climbed 9.2 per cent, with villas showing a major jump of 21.2 per cent.

According to  Ata Shobeiry, CEO at Zoom Property, the luxury property market will continue its rebound in 2022.

“The luxury property market will retain its upwards trajectory in 2022 with more upscale buildings and projects on the rise. Consequently, wealthy foreign investors will show more interest in the sector.

“The market, on the whole, will benefit from an influx of overseas investors as there’s an increase in demand from Ukrainian and Russian buyers, as well. Moreover, visa reforms, expatriate-friendly policies, and high profit earning potentials continue to attract investors from across the globe, making Dubai a lucrative market for real estate investment,” Shobeiry said.

The most expensive apartment was sold in Burj Khalifa Zone 4, Downtown Dubai, for Dhs 73 million during the first quarter of 2022. It was followed by an apartment in Dorchester Collection Dubai located in Business Bay. The ultra-prime apartment was sold for Dhs 69 million.

Next, The Royal Atlantis Resort and Residences in The Palm Jumeirah sold a high-end apartment for Dhs 63 million. Luxury apartments in W Residences Dubai and Serenia Residences Building B, both located in the Palm Jumeirah, were sold for Dhs 57 million and Dhs 50 million, respectively.

Maintaining its reputation for selling ultra-exclusive and luxury villas, The Palm Jumeirah sold the most expensive villa worth Dhs 87 million during Q1, 2022. Another villa valuing Dhs 30 million was sold in Island 2. It was followed by luxury villas in Dubai Hills Estate, Nad Al Sheba Third, and Al Hebiah Fourth, sold for Dhs 29 million, Dhs 22 million, and Dhs 10 million, respectively.

In a bid to earn higher profits, many owners of luxury homes in Dubai are delaying their plans of selling properties as prices are expected to increase even more. Particularly areas such as The Palm Jumeirah, Jumeirah Bay, District 1, and Dubai Hills are projected to see a 10 to 15 per cent jump in annual price gains.

According to The Zoom Property Insights, there’s a strong prediction of a record increase in the sales of Dhs 100 million-plus luxury homes in Dubai.

Meanwhile, the Expo 2020 Dubai comes to an end, marking a memorable experience for not just the residents of the UAE, but visitors from around the world - including political leaders, heads of states, royal family members, and global celebrities. The first World Expo of the Middle East, North Africa, and South Asia (MENASA) region has welcomed over 22.93 million visitors as of March and recorded nearly 31 million online visits.

The world’s greatest fair, themed ‘Connecting Minds, Creating the Future,’ which spanned over 6 months, also served as a platform to address key global concerns around sustainable practices, the future of transport and travel, innovative ideas for the holistic development of the youth and communities, and much more.

Meltwater, the world’s leading media monitoring & social media analytics provider -- after tracking and analysing news and social media data, has highlighted the increase in the online mentions of the Expo from October 1, 2021, to April 5, 2022, and the popularities of pavilions among visitors.

According to the data, the Saudi Pavilion emerged as the most visited attraction at the Expo 2020 Dubai, hosting more than 4.8 million visitors. The pavilion’s architectural appeal and its programming over the past 6 months, highlighted the best of its social, cultural, and economic changes taking place in the Kingdom in line with the Vision 2030 reform agenda. Saudi Arabia has also emerged as a strong contender to host the Expo 2030 and further reinforced its desire and readiness to host the global fair. Other notable pavilions included the UAE Pavilion, which resembled a falcon in flight, with a four-story white structure that incorporated hospitality areas and exhibitions dedicated to showcasing the country’s culture and inspiring stories.