How is the Luxury Property Market in the UAE?
The luxury properties accounts for only a small portion of the overall UAE real estate market, but this small chunk had decisive impacts on real estate business. The UAE is a superlative experience for those who are looking for a global investment or a dream house. The United Arab Emirates had the best opportunities to invest with the best ROI.
Let’s review the current performance of the luxury property market in the UAE.
CURRENT TRENDS IN THE UAE
Property prices swung due to COVID19 in 2020, and high-net-worth Individual considered this as an opportunity to invest in high-end properties. During the COVID19, the sales and rental of luxury property markets stayed busy because Individuals were putting more focus on buying luxury properties.
“We are witnessing a huge shift in the market with a big uptick in activity in villa communities. There has been particularly high demand in areas like the Palm Jumeirah, which offers a perfect beach retreat, Al Barari, which affords residents large built-up areas and plenty of greenery, and Jumeirah Golf Estates, which is perhaps the premier family community in Dubai,” Says Andrew Cummings, co-founder and managing director of Luxuryproperty.com.
WHAT MAKES UAE THE BEST?
Although the UAE is a new entrant in the league of luxury properties market of the world, the real estate here ensures maximum ROI. In 2019, the luxury property market of Dubai registered 194 transactions of premium properties as compared to the previous year 115 transactions.
The Emirates offer incomparable values equated to the other property markets around the world. 2002 was the year when the concept of freehold properties came. Since then, a property boom came and foreigners were able to invest. Reports say that “The luxury property market is worth more in the United Arab Emirates, as compared to other countries of the world. Apart from this ratio, luxury homes are far cheaper in the UAE, as compare to other expensive cities.
See what size of property you will get by investing $1 million in different cities globally.
- Geneva: 441 sq. ft. of prime property
- Monaco: 172 sq. ft. of prime property
- London and New York: 334 sq. ft. of prime property
- Singapore: 388 sq. ft. of prime property
- Hong Kong: 237 sq. ft. of prime property
- Paris, Shanghai and Sydney offer less than 620 sq. ft
In Dubai and Abu Dhabi, this investment could give you a prime property double in size or 1,539 sq. ft of prime properties. According to the forecast, 2021 will be the best year for buying a luxury property in the UAE.
LUXURY PROPERTY TRANSACTIONS IN DUBAI
Dubai is a favorite place to buy or rent a luxury property in the UAE. Listed below are some of the best areas in Dubai to buy a luxury property.
According to Dubai Land Department, 15,897 sales recorded in 1st half of 2020, amounting ADE 32.5 billion of the total transaction. According to different digital platforms, residential transactions grew by 64% after June as the country ease restrictions, in which Dubai alone participated worth ADE 4.72 billion.
LUXURY PROPERTY TRANSACTIONS IN ABU DHABI
In Abu Dhabi’s real-estate transactions were increased by 22% in Q-1 2020, compared to last year. Before the countrywide lockdown, the Department of Municipalities and Transport observed the transactions of ADE 8.7Billion, consist of 3,613 property deals.
The Department of Municipalities and Transport issued the list of total sales for luxury properties in Abu Dhabi.
- Al Reem Island (ADE 2 billion)
- Saadiyat Island, (ADE 1.5 billion)
- The Reef Region (ADE 911 million)
- Khalifa City (AED259 million)
- Al Shamkha city (AED234 million)
The luxury properties in The UAE offers:
- Superb Location
- Modern Architectural Design
- Stunning Views
- Lifestyle Community Amenities
REAL ESTATE MARKET IN UAE - GROWTH, TRENDS AND FORECAST (2020-2025)
The residential property markets were slipping due to challenging competitions and Global pandemic in 2020, and less supply of residential units in other Emirates. Since 2018, the real estate prices were dropped in Dubai and Abu Dhabi by 23% to 18% as the demand were slow. But now, the real estate market is expected to get stabilized in 2021. One of the most positive indications is that, despite this lockdown and instability; the property-related transaction was increased. Goldstein Market Intelligence report stated that the UAE property market is expected to grow at CAGR of 7.4% from 2020 to 2025.
Furthermore, the UAE property markets were accounted for USD 74.3 billion in 2017, which is like to reach USD 132.5 billion by the end of 2024. This attributed sales growth will rise due to foreign investments in luxury sectors.
Buying a luxury property in the UAE provides world-class luxury living standards. Although in current situation, the luxury market in the UAE has some fluctuations due to global pandemic. But, for those who are looking for opportunities, this is the best time to invest.