Dubai's luxury residential property market is growing at the fastest rate in the world
Dubai's luxury residential property market is growing at the fastest rate in the world
Dubai's residential market is now driven not by speculative activity but by real end users, analysts say, as the luxury residential property segment has grown at the fastest rate in the world over the past year. Prices in the emirate's main property market are up 13% year-on-year, but still 15% below their 2014 peak. However, according to the global real estate consultancy Knight Frank, some figures have exceeded 2014 levels.
According to Faisal Durrani, Partner and Head of Middle East Research, luxury home prices have risen nearly 55% in the last 12 months, the highest rate of growth in any luxury housing market in the world, driven by ultra-high-income people buying luxury real estate in Dubai. The emirate's luxury real estate market is experiencing unprecedented growth thanks to record deals over the past year and a half. The most expensive real estate was sold in the emirate, one of them - on Palm Jumeirah was sold for 600 million dirhams. Meanwhile, that record is about to be broken as a new ultra-luxury apartment at Bugatti Residences by Binghatti has been listed for sale for AED 750 million.
The influx of millionaires after the pandemic has increased demand for luxury real estate in all segments. The first edition of the report surveyed 183 millionaires around the world, each with a net worth of over $3 million, not counting their primary home or primary residence. The head of regional research at Knight Frank said that a large number of wealthy people are interested in buying ready-made houses, not under construction. When the Palm Jumeirah launched 20 years ago, he said, it would have been very difficult to sell it to the wealthy because much of the project was under construction. It has now been completed, offering schools, malls and hospitals. Hence, there is a high demand for it.
