These high-value transactions were concentrated in key areas such as Palm Jumeirah, Mohammed bin Rashid City, Dubai Water Canal, Tilal Al Ghaf and Dubai Hills Estate, according to a report by real estate firm Betterhomes.
These locations not only had the highest number of luxury property sales transactions, but also contributed significantly to the total transaction value during this period.
High-value real estate transactions in Dubai in the first five months of the year were concentrated in areas including Palm Jumeirah. Photo: Getty Images.
According to Betterhomes, the Dh165.6 million sale of a home at MAG's Ritz Carlton Residences in Dubai Healthcare City is the highest priced primary home sale in the emirate so far this year.
The UAE real estate market has boomed in recent years thanks to government initiatives such as residency permits for retired and remote workers and the expansion of the 10-year golden visa programme.
The overall growth of the UAE economy due to diversification efforts is also supporting the real estate market.
Dubai's luxury market hit a record last year as sales of homes costing more than $10 million nearly doubled to $7.6 billion, outperforming London and New York, Knight Frank said in a report earlier this year.
Prices of homes worth more than $10 million in Dubai also rose at the fastest rate globally at 26% last year, as foreign demand for luxury homes in the emirate continued unabated, according to Knight Frank.
The rise in global wealth has had a significant impact on the Dubai real estate market. According to Betterhomes, as wealthy individuals seek to diversify and secure their assets amid geopolitical volatility, Dubai has emerged as a top destination.
Over the years, the UAE has welcomed 99,000 millionaires, of whom more than 72,000 now live in Dubai alone, according to Henley & Partners' World's Richest Cities Report 2024.
The city now boasts the highest concentration of wealthy individuals in the Middle East, with a combined net worth exceeding Dh3.7 trillion.
According to Henley & Partners, about 72,500 millionaires, 212 multi-millionaires and 15 billionaires have moved to Dubai by 2024.
“Traditionally, cities like London, New York, Singapore and Hong Kong have been the preferred choices of the wealthy,” the report said.
“However, the deteriorating geopolitical situation, significant tax changes, policy changes and supply crunch leading to soaring prices have made the wealthy look towards Dubai as their new home,” the report added.
Pearl Island, West Bay, Doha, Qatar - 1 of 9 free-hold zones allowing foreigners to buy and own real estate. Photo: Internet.
The average property price per square foot in London in the first quarter of 2024 was $824, in New York it was $808, in Singapore it was $765, in Los Angeles it was $663, in Toronto it was $659 and in Dubai it was $352.
While these cities have experienced immigration-led growth over the years, they also face significant challenges that hinder their ability to deliver value for money in the property market, the report said.
One of the main problems is the severe shortage of homes that cannot meet the high demand. This shortage pushes up prices, making it difficult for buyers to find properties that offer good value for their investment.
In contrast, Dubai is actively addressing the supply challenge by adding more luxury homes to its total supply. Currently, more than 50 luxury projects are under construction, with each unit starting at Dh15 million.
Dubai also saw a significant increase in luxury rental transactions between January and May, with 270 property deals with annual rentals of Dh1 million or more, the report said.
The locations dominating this luxury market are Palm Jumeirah, MBR City and Dubai Hills Estate.
The Betterhomes report found that the increase in tourists and transit passengers also increased demand for short-term rental properties, especially luxury vacation homes.
Many homeowners are now considering converting their properties, especially those with larger acreage and coastal locations, to take advantage of this growing demand.
Diep Nguyen (According to The Nation)
Source: https://www.congluan.vn/gioi-sieu-giau-tiep-tuc-tang-mua-bat-dong-san-hang-sang-o-dubai-post300488.html
Comment (0)