Dubai, the new real estate El Dorado? After several years of decline, the real estate market is taking steam in this Gulf emirate, thanks to wealthy foreigners who want to escape locking and other health restrictions.
Luxury villas, if possible with golf courses, are the best shopping list, and many Europeans have set their sights on Palm Jumeirah, an artificial island in the shape of a palm tree.
Villas worth millions of euros
Although magnified homes and gigantic towers usually appear on Dubai’s “Skyline”, one of the region’s largest real estate markets, many properties have not seen buyers until now, and the sector has been dark since 2014. Boundaries caused by the Govt-19 epidemic have halted sales, “but we have seen an increase in the number of transactions as soon as they are controlled. It has not stopped since,” said John Sochinke, managing director of analytics firm Asset Surveillance, in Dubai.
Conclusion: In April, the number of real estate transactions for properties worth more than 10 million dirhams (approximately 2.23 million euros) rose to 90, according to property surveillance, which usually records between 350 and 400 similar transactions per year. In the same month, 81 properties found buyers in Palm Jumeirah alone, up from a total of 54 in 2020.
A mansion sold for nearly 25 million euros, a record in recent years on the artificial island. Now the first gem on the market, a modern 1,309 sq m Italian style villa – 60 m beach, white marble, infinity pool and home cinema – located at the end of a palm grove is still looking for its side tenant for 22 22 million.
“I think people are starting to realize that Dubai is no longer a construction site. Ten years ago the city set a world record for cranes,” said Matthew Pat, owner of Blackbrick, an agency trying to sell property. According to him, while managing their business remotely in Europe, North America or Asia, buyers are now setting up their primary home there.
Buyers, Unrestricted Free Riders
Despite the explosion in events after the Christmas holidays, life in Dubai continued without many restrictions, with restaurants and hotels reopening. “Riders for free from other countries, we see a lot here,” confirms John Socchinke, real estate analytics firm, who attributes the ease of obtaining resident status and the opportunity for foreigners to now own 100% of businesses to buy in Dubai. The IHS said the arrival of the visit particularly boosted tourism and helped return to the pre-business Govt position in April. Market said.
But will the recorded increase continue after imprisonment? The market is far from the records it reached before 2014 and the apartment segment lags behind in luxury, with many towers half empty despite the construction frenzy.
Morgan Stanley analysts are optimistic anyway: “Strong demand, peak supply and delivery times for new projects, may overwhelm the market more than expected in the coming years.” According to a recent report by the Bank of America, with the “wave of government reforms, attractive real estate rates and a change in the structure of demand due to Govt-19” the stars are being aligned to make the Emirates Dinzel continue to shine.