Is Dubai’s luxury property market headed for a record high in 2023 as more Dh20-200m homes are launched? | News Bharat

Dubai: Will Dubai luxury homes achieve another record year of growth in 2023?

Developers certainly think so, as the past few days have seen launches of Omniyat (with Orla, prices from Dh25m), MAG of Life (a limited edition of Ritz-Carlton residences at Dh177m ) and Binghatti (with the tallest residential tower under construction with 8 million dirham apartments).

During the same period, Alpago Properties sold a 5-bedroom villa in the Palm for Dh130 million and promised that “more designer villas will come to market in the coming months”. Now, Alpago’s portfolio also includes a house on Palm’s Billionaires’ Row that found a buyer for Dh302.5 million.

Evidence enough to suggest that 2023 promises much more action in Dubai’s premium property space. “Primary values ​​are being fueled by Dubai’s safe haven status, an exceptionally diverse range of international high-net-worth individuals looking for (their) luxury second homes, combined of course with the world-leading government response to the pandemic. which has boosted business confidence,” said Faisal Durrani, head of research for Knight Frank’s Middle East operations.

“Adding to the appeal is its relative ‘affordability’, with prime homes trading for around $800 per square foot, making Dubai one of the most ‘affordable’ luxury residential markets in the world. Overall residential prices are down from peak levels in 2014 by 21.4 percent.”

This is becoming another incentive for wealthy home buyers, which compared to a property in New York or London Dubai offers them more, much more, for the same money. It’s probably also why there’s already a waiting list for Omniyat’s recently launched Orla on the Palm, which includes a three-level, 50,000-square-meter penthouse (price to be announced soon) and a mansion with extreme proximity to the beach (price to be announced).

Don’t flood the market

The developers are also playing it very smart; all recent luxury home launches have been limited edition and offer investors the security of finishing the project with strict management. Sharjah-based Arada did the same with the launch of its first project in Dubai, at Jumeirah Golf Estates, and will repeat it early next year with a signature development at the Palm.

“Developers (in Dubai) have not responded to the expansion in demand as we have seen in past cycles and with supply continuing to be limited and demand for luxury waterfront continuing to strengthen, our prime residential forecast to 2023 of 13.5% is supported by a clear demand. -supply imbalance and a positive economic context,” said Durrani. “In fact, the United Arab Emirates is expected to have one of the fastest growing economies growth in the world by 2022. A return to steady and sustainable growth will inspire confidence in owners and investors alike.”

Go “brand”

MAG of Life’s Dh177 million Ritz-Carlton Mansions is the continuation of a trend that has been prominent throughout this year: the demand for branded homes in Dubai. At Atlantis The Royal residences, a penthouse sold for Dh163 million this year, enough to take the title of being Dubai’s most expensive penthouse deal to date. (And that could soon be challenged by looking at some of the options just hitting the market now.)

“Branded residences are in high demand right now, especially on Palm Jumeirah,” said Georgia Peacock, Private Client Advisor at “Buyers are looking for high-end residences that offer the prestige of a well-known luxury brand.

“Many of the brand’s newest projects such as Orla and Ava (both managed by The Dorchester Collection) have already sold out as buyers rushed to lock up their units while they still could. Projects that are being delivered Currently, or soon to be delivered, such as Atlantis the Royal Residences, also have very little supply as most units have already been purchased.”

This and more should be more than enough to sustain luxury property sales in Dubai in 2023…

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