Luxury villas, if possible golf courses, are on the best shopping list and many Europeans have set their sights on Palm Jumeirah, an artificial island in the shape of a palm tree.
Although The typical appearance of large-scale houses and gigantic towers on Dubai’s “Skyline”, one of the region’s largest real estate markets, has seen many properties never buyers yet, and the sector has been in darkness since 2014.
Closing of borders due to Govt-19 epidemic halted sales, “But we have seen an increase in the number of transactions after the regulation. It has not stopped since.”, Says John Sochinke, managing director of Property Monitor, a Dubai-based analytics firm.
Unlike others in the Gulf, Dubai, one of the seven members of the United Arab Emirates,’s economy is not based on black gold, but on tourism, trade, finance and real estate. Gross Domestic Product (GDP) in 2019.
According to official figures, in the first six months of 2020, the U.S. economy collapsed by about 10%. The real estate sector (about 8% of GDP) recorded a decline of 3.7%.
Officials are betting on a reopening to visitors in July 2020, promoting a lot of influence on social networks and one of the world’s most serious vaccination campaigns with drastic health measures.
Despite the outbreak of lawsuits after the Christmas holidays, life in the Emirates continued unabated, with restaurants and hotels reopening.
“Having free riders from other countries, we see a lot of them here”John Sochinke confirms, noting that the ease of obtaining resident status and the possibility of foreigners now owning a company 100% in Dubai also plays a role.
IHS Markit says the arrival of visitors in particular boosted tourism and helped business return to its pre-Kovit position in April.
In the same month, the number of real estate transactions for assets worth more than 10 million dirhams (approximately 2.23 million euros) rose to 90, according to Property Surveillance, which typically records 350 to 400 similar transactions per year.
In April, the Palm Jumeirah alone saw 81 property buyers, with a total of 54 in 2020. A mansion sold for nearly 25 million euros, a record on man-made island in recent years.
Villa, 1,309 m2, for sale
Now the first gem on the market, the 1,309-square-meter modern villa in Italian style – 60m beach, white marble, infinity pool and home cinema – located at the end of a palm grove is still seeking a seeker for 22 million euros.
“I think people are starting to realize that Dubai is not a construction site. Ten years ago the city set a world record for cranes.” Matthew Pate, the boss of BlackBrick, one of the companies trying to sell the property, is analyzing.
According to him, buyers are now setting up their primary residence in Europe, North America or Asia when they manage their business remotely.
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 compared to luxury, with many towers half empty despite the construction frenzy.
Morgan Stanley analysts are optimistic, however: “Strong demand, the peak of supply and delivery times for new projects may hurt the market more than expected in the coming years”.
According to a recent report by the US Investment Bank, the stars have been aligned to keep the Emirates Dinesl shining, with “government reforms, attractive real estate rates and a change in the structure of demand due to Govt-19”.
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