By 2024, expectations indicate that Dubai will significantly strengthen its position in the global luxury real estate scene. By 2023, Dubai is poised to become the world's leading destination for luxury real estate, surpassing other popular global cities. Dubai has also become the destination of choice for high-end, branded residences, surpassing other established international cities popular for luxury real estate such as New York and London.
Dubai expects to see increased demand for luxury living spaces from local and foreign investors. The challenge is not in the quality of existing properties, but in the limited number of luxury properties, as the number is not equal to the rapidly increasing demand rate.
Diana Nelbovskaya, CEO of Mered International Real Estate Development Company, confirmed expectations for increased sales of ultra-luxury properties in Dubai. By the end of July 2023, Dubai has sold 335 luxury properties, generating revenues of around 850 million. US dollars (3.1 billion dirhams) from high-quality assets. In the first half of the year.
In the third quarter of 2023, market sales reached $420 million. The market is focused on billionaire buyers, with 176 homes sold for $845 million and 219 townhouses sold last year, indicating high demand for ultra-luxury properties.
The real estate market in Dubai is witnessing a major change as the market has become more stable, which boosts investors' confidence and enhances their ability to make informed and thoughtful investment decisions. This maturity reflects the long-term sustainability of the market and its ability to attract a global group of investors and end-users.
Knight Frank's Fall 2023 report confirms this trend, with residential property values in Dubai showing eleven consecutive quarterly rises, with an average increase of 19% over the past year. Apartments are gaining popularity in Dubai's real estate market.
A significant increase of 19.9% was seen in average apartment rents until October 2023, compared to an 18% increase in average villa rents. This trend highlights the preference of buyers to live in apartments in Dubai.
Diana Nelbovskaya concluded by saying that Dubai's performance in 2023 saw a strategic shift towards informed investments, reflected in record sales and a diverse investor base, which focused on market maturity and long-term value. In 2024, Dubai is expected to continue its continuous growth in the global real estate industry, offering exceptional opportunities for investors and buyers.
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