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 golf course, are the most popular choice, 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
Despite the regular appearance of large houses and sprawling towers on Dubai’s “Skyline”, one of the region’s largest real estate markets, many properties have yet to find buyers, and the sector has been in darkness since 2014. Boundaries have halted sales due to the Govt-19 epidemic, “but we have seen an increase in the number of transactions after the regulation.
Conclusion: In April, the number of real estate transactions for assets worth 10 million dirhams (approximately 2.23 million euros) rose to 90, according to the property supervisor, which usually records 350 to 400 similar transactions per year. In the same month, Palm Jumeirah alone saw 81 property buyers, 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, the modern 1,309-square-meter Italian-style villa – 60m beach, white marble, infinity pool and home cinema – is located at the end of a palm leaf and its side tenant still மில்லியன் 22 million.
“When the city set a world record for cranes ten years ago, I think people are starting to realize that Dubai is no longer a construction site,” said Matthew Bate, owner of Blackbrick, an agency trying to sell property. According to him, buyers are now starting to manage their business remotely in Europe, North America or Asia.
Buyers, Unrestricted Riders
Despite the outbreak of lawsuits after the Christmas holidays, life continued in Dubai without much restrictions, with restaurants and hotels open. “Unrestricted riders from other countries, we see a lot here,” confirms John Socinke of the property surveillance analysis firm, noting that obtaining resident status is easy and that foreigners now have a 100% chance of owning it. Business in Dubai also played into the buying spree. IHS Markit says the arrival of visitors in particular boosted tourism and helped business return to its pre-Kovit position in April.
But will the recorded increase continue after imprisonment? The market is far from the records reached before 2014 and the apartment segment is lagging behind in terms of luxury, with many towers half empty despite construction anger.
Morgan Stanley analysts are optimistic: “Strong demand, supply for new projects and peak delivery times could strengthen the market more than expected in the coming years.” According to a recent report by the U.S. Investment Bank, the stars have been aligned to keep the Emirate Tinsel shining, with “government reforms, attractive real estate rates and a change in the structure of demand due to Govt-19”.
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