The luxury property sales market in Dubai has seen an uptick in the volume of transactions during the first six months of the year compared to the same period last year. This trend is expected to continue, indicating resilience in the higher end of Dubai’s real estate market.
Dubai’s luxury housing market registered 194 transactions in the first half of 2019 as compared to 115 such transactions in the same period in 2018, according to Data Finder, a real estate insights and data platform from The Property Finder Group.
Demand is back for established communities such as the Palm Jumeirah, Downtown Dubai and Emirates Hills. Once considered too expensive, these areas are now attractive after a decline in their prices. Data Finder’s analysis noted that the luxury market has also enjoyed a lot of interest with new projects such as Dubai Hills Estate and Mohammed Bin Rashid City.
“As prices continue to become more attractive across Dubai, the number of transactions in the luxury market have increased, and we expect this trend to continue as long as the prices align with investor expectations,” Lynnette Abad, Director of Data & Research, Property Finder, told Zawya.
“Prices in the luxury market were inflated over the past few years; therefore, as prices declined, particularly over the last year, luxury properties have become very attractive, especially to foreign investors,” she added.
Data Finder also noted that the most expensive property transaction in Dubai so far this year is an off-plan transaction registered for a penthouse in Omniyat’s One Palm project, which was sold for AED 74 million ($20.15 million) in May.
Besides falling prices, what are the key factors that matter to investors looking to buy luxury houses in Dubai?
“Compared to other key cities around the world, Dubai luxury property is the best value for money. In addition, Dubai has implemented new, strategic visa legislation linked to investment which has made purchasing a property or setting up a business in Dubai more attractive,” Abad told Zawya.
According to Data Finder’s analysis, Dubai’s luxury homes are still very affordable compared with their counterparts in leading global cities such as London, New York, Paris and Singapore. This could be the reason for the revival of buyer interest in Dubai’s prime housing market.