Dubai’s luxury real estate market in the first quarter of the year hits the sale of residential spaces worth US$10 million. The quantity of the exclusive homes is 105 making it ground breaking. The sale percentage of luxury flats in Dubai observed a 19% increase from the last year of 2023. Dubai’s luxury real estate market is appealing to the attention of investors and buyers making it a hot spot for business and sophistication seekers.
Dubai Witnessing Ground breaking Sale of Luxury Flats in Dubai
Let’s discuss what is happening in the Dubai luxury flat market, and what are the insights of it. This will help, in deciding whether to not to invest in Dubai luxury real estate.
Value of Transactions Breaking Records!
Dubai real estate is witnessing the disruption with the total value of transactions reaching a mindboggling amount of $1.7 billion in Q1. This has led to making the Dubai position a leading and competitive market.
In the previous year of 2023, Dubai’s real-estate market has crossed the sales with the number 431 which was ahead of New York and London.
Among these exceptional places, Pal Jumeirah has been identified as one of the most coveted locations with sales touching the amount of $628 million. These sales of luxury flats in Dubai also account for 36.3 per cent of the sales.
Popular Destination for Luxury Flats in Dubai
Among the other hot spots of luxury flats in Dubai which are available for sale, Dubai Hills Estate and Jumeirah Bay Island were also competing. If you want to buy a luxury flat in Dubai in the previous year, these are the prestigious and brilliant options for you. Both of these places have showcased appealing properties that have attracted a massive number of buyers and investors.
Increase in Affordability
Currently, Dubai is chanting for luxury properties and as mentioned earlier the total price of the sale reached $1.7 billion. However, this ground breaking sale in the luxury property of Dubai is not only because of the exclusive location or exceptional amenities, but the primary reason was the affordability.
According to the report, residential market growth in Dubai was evident. The segment has seen the increase of 26.3% increase in sales over the last 12 months. The rapid growth is due to the increased affordability aspect that made Dubai stand out among the other cities.
According to the Partner head of Research, MENA, Faisal Durrani:
“The level of deal activity in Dubai continues to strengthen, particularly at the top end of the market, where the near constant stream of international high-net-worth individuals vying for the city’s most expensive homes persists.”
He further added:
“The laser-like focus of the global wealthy on Dubai is best reflected in the rapid deterioration in the volume of $10 million+ homes for sale, which has fallen by 59 per cent across the city over the last 12 months to just 864 homes.”
The residential units in the category of luxury flats in Dubai fall under the price tag of ‘homes under AED1 million’.
Preference of High Net-Worth Individuals
High Net worth Individuals (HNWIs) individual are those who maintain certain threshold and liquid assets. The typical value for the financial assets held by these HNWIs value is approximately over US$1 Million.
As highlighted by Knight Frank Dubai in the previous year of 2023 ranked as the exceptionally significant place for the HNWIs. The luxury residences in Dubai offer access to green lush parks making them appealing to investors.
Dubai Luxury Real Estate
Dubai’s luxury property market continues to attract global attention through dynamic growth. The exceptional offerings of the Dubai market are due to its strategic location, world-class amenities, prime location and competitive pricing. Due to these features, the Dubai property market remains a top choice.
The luxury flat in Dubai’s demand rippled through the property market. This behaviour of the market has up surged the rental cost for the less wealthy. But still, with these constraints, the property market is affordable for wealthy and middle-class individuals.
According to Monica Malik, chief economist of Abu Dhabi Commercial Bank:
“There remains a strong desire for professionals to move to Dubai,”
Conclusion
The Dubai property market is making waves in the news as the luxury flats in Dubai demand is constantly increasing. The total amount of transactions for the extravagance flats in Dubai touched $ 1.7 billion. As Dubai real estate is witnessing a hike in demand; It is clear that the high cost of flats is due to the luxury amenities, and affordability, Dubai is a popular destination for investors and exceptional architecture. On-going off-plan projects in Dubai are becoming favourites for investors and buyers.
