“During the last 10 years, Dubai real estate has not witnessed a turnout from the world’s richest people like the one it has recently witnessed.” , With a growth of 230% in the first quarter of this year, compared to the same period last year, while prices in some high-end areas increased by up to 40%, and workers in the sector attribute this surge in performance to 12 engines that were behind the huge real estate deals in Emirate.
The directors of local and international brokerage companies and global real estate agencies agreed that the wave of large-scale real estate purchases, led by millionaires in Dubai, jumped with sales of luxury villas, sea-view apartments and family homes that existed late last year and the first half of this year, so that the real estate market overcame the challenges of decline, That accompanied the peak of the epidemic, so it invests in the lifting of closures, curfews, the return of normal life, and the growing real estate demand in restoring market stability and absorbing supply.
The market recorded more than 24 billion dirhams, the value of the sale of 15825 houses in Dubai, from the beginning of 2021 until now, and the deals of the rich represent a large proportion of those sales, and this phenomenon is not unique to Dubai, as foreign millionaires flock to buy high-end homes driven by 12 engines Fundamentally, Dubai has established a very attractive destination monitored by the “economic statement”, represented in: securing food supply chains, completing sterilization and vaccination campaigns, accelerating travel and movement, opening beaches and entertainment centers, frequent global closures, a qualitative educational system, a dynamic flexible economy, and strong job opportunities. , Modern living style, low price of luxury real estate, advanced urban infrastructure, and openness to the world.
The unprecedented performance of the UAE in the face of the pandemic and its mobilization of all energies, to cross the bank of safety after the completion of one of the fastest sterilization and vaccination campaigns in the world (exceeding the provision of 12 million vaccine doses), made the country a destination where millions wish to go to live and work, and Dubai has strengthened itself as the best place to spend Holidays in the world in light of the pandemic, it reopened its doors to tourists last summer, and enabled tourists to enjoy visiting attractions in the emirate, shopping and swimming, amid precautionary measures, while the countries of those wealthy people were returning time after time waves of closures, and imposing restrictions on business to counter the effects of the pandemic “Covid 19”, and thus the luxury real estate in Dubai, in which life has returned to normal, has become a haven for hundreds of rich people from different countries of the world, specifically rich people in Europe, who fled the restrictions of the pandemic in their countries, to establish in Dubai a meaningful outlet for their commercial activities.
The real estate market in Dubai benefited from the rich, who did not delay in capturing the decline in prices in luxury real estate to their lowest levels during the past 6 years, which decreased by nearly a third, and in addition to these emerging factors affecting the behavior of investors, millionaires in general are attracted to Dubai, because it has a dynamic economy, with high income, and able to deal with challenges, as well as good tax rates, strong employment opportunities, a modern lifestyle, luxury entertainment and shopping options, high-end apartments and villas, international schools and universities, other than yachts, beaches and infrastructure. Advanced, advanced laws, openness to the world, security and safety that the country enjoys.
Wave of millionaires
Ahmed Al Matroushi, Executive Board Member at Emaar Properties, said: We are facing a new wave of wealthy people, who found in Dubai what they did not find anywhere in the world, while many countries of the world re-imposed restrictions against the Corona virus, Dubai welcomed visitors. And tourists, and the UAE has gone the longest of one of the fastest vaccination campaigns in the world.
He pointed out that Dubai is capable of attracting attention and attracting investments in all exceptional circumstances, and the latest estimates speak of the UAE’s continued enhancement of its position as a privileged option for the wealthy, as tens of thousands of millionaires have moved to the country in less than two decades, according to the statistics of the Summit. Arab Wealth 2018 », the UAE includes about 3,820 millionaires, who have net assets of $ 10 million or more, and there are also about 1660 millionaires, who own a net share of no less than $ 30 million, and 240 other individuals have money. Less than $ 100 million.
He pointed to a clear recovery in market activity, which helped raise the prices of family villas and high-end properties on the beaches and around golf courses, which increased demand supported by attractive offers from some developers and owners, as well as easy financing and an open economy despite the pandemic, and it is not unlikely that the half will witness The second 2021, the beginning of the rise in housing prices in Dubai by up to 3% after a 7-year static
Anuj Puri, from Anarok Real Estate Consulting, said: We can actually see a marked improvement in investor confidence, and a clear increase in demand with prices remaining low over the past years, and supply shrinking significantly. He added: The vaccination campaign here is also going well, and the economy is gradually recovering as the government takes measures to stimulate growth.
And he expected house prices in Dubai to rise by 1.1% this year, and 3% next year, which represents a major shift in expectations, and real estate prices in distinguished locations in Dubai have risen in the past few months, due to buyers who took advantage of the low prices, ease of payment on credit, and openness Economy on business despite the pandemic, and snatched up bargains.
The real estate sector has shown a recovery in the recent period, according to data from the Dubai Land Department. Linette Abad Satchito, Director of Research and Data at the Property Finder, said: The real estate market has witnessed a significant recovery since the second half of 2020 and continues to recover, and with more government incentives, which have begun. Pays off in stimulating the economy, this will have an impact on the housing market.
Launched since 2020
The demand for luxury real estate has started since last October. Latifa Ibrahim Ahmed, Director of Real Estate Studies and Research at the Dubai Land Department, said on the sidelines of the monthly real estate index issuance that October 2020 witnessed the registration of 3395 sales, worth 6.93 billion dirhams, and this formed the emergence of signs The strong recovery on the market, and its return to its natural paths in the various segments of real estate units, especially through the demand for luxury units, and the recording of sustainable growth month after month, and this means that in general the year 2021 is promising for the market, especially if we take into account the growing momentum of preparations for the reception of the Expo Dubai », which the whole world awaits.
Matthew Patti, whose agency “Nest” deals mainly in luxury villas, said that activity has boomed over the past few months, after citizens, residents and foreign visitors seized the opportunity to buy. He said: We had some assets whose prices have decreased after the closure of “Covid 19”. Now I say that we are back to early 2020 and 2019 prices.
“We had a massive influx of tourists, and many people came to Dubai, and our newest two or three of our clients are dealing with properties worth more than 15 million dirhams ($ 4.08 million), and they have properties in New York and London, and they are now heading to Dubai,” he added.
Basil Nour, who works as a real estate broker, confirmed that the luxury real estate in the emirate has become, at the beginning of this year, a strong competitor and attractive to investors, as it is the highest quality and cheapest in the world, and this has stimulated international investment demand for it recently, especially from the wealthy, according to the estimates of «Savills. Real Estate Consulting », the prices of the luxury real estate market in the emirate have declined over the past 5 years, due to the high levels of construction stocks and oversupply, and therefore the decline in prices is considered normal in a market governed by supply and demand, and Nour believes that the decline in luxury real estate prices has ended, and confirms that the rich are from Global homebuyers fleeing frequent closures due to the pandemic are finding their way in Dubai real estate, which has turned March into the busiest month ever for high-end residential properties in the emirate.
According to data collected by Property Monitor, a real estate consultancy, 84 real estate deals were executed last March, which represents a new record for real estate, whose value exceeds 10 million dirhams. In total, the total value of deals reached 1.7 billion dirhams in March.
Taimur Khan, partner at Knight Frank said: We have seen a remarkable change in sentiment, and currently prices are increasing in all segments. He explained that at the upper end of the market, the impact comes mostly from European money, through a group of investors looking for assets in Economies linked to the dollar, this comes after the UAE introduced new visas for tourists and approved a new remote work visa that enables employees from all over the world to live and work from the UAE, as buying a property is one of the fastest ways to obtain a residence permit in Dubai.
He explained that there is a demand for holiday homes in Dubai from international investors, as well as for housing with distinctive services, in light of the changing trends of buyers around the world at the current stage, after returning to life coinciding with the continuation of the pandemic.
Zan Guchinki, Chief Operating Officer at Property Monitor said: “Dubai is seen as a safe place and less restrictive than many other places. Government initiatives aiming to attract more investments and people to Dubai raise and support morale. On the long-term market prospects.
Hosni Al-Bayari, CEO of “D & P Real Estate”, said that there are a number of factors influencing the direction of international investors in the real estate market during the current and coming period in light of the continuing outbreak of the epidemic around the world, and the first of these factors is to search for higher specifications for the primary residence For the family.
He explained that the desire to access health care in the midst of the pandemic is a very influential factor, and this is what the UAE provides with advanced standards, while the third factor is to have a home for holidays, as the wealthy usually look for a second home abroad, and Dubai has great experience and a long experience with investors from This kind, won their trust during the second real estate boom after 2004.
The demand of the wealthy is concentrated on beach villas and family residences
Firas Al-Masdi, CEO of “FEM”, said that the performance of the luxury real estate market is on the rise, especially residential villas, townhouses, apartments with sea views and luxury apartments.
He added: The huge real estate deals in Dubai are no longer the preserve of the wealthy in India and the United Kingdom, as they have been over the past two decades. The circumstances of the Coronavirus pandemic have changed the orientations of investors, and have reshaped their desires and the quality of the real estate they wish to invest in, leading to changing the quality of investors and the highest investing nationalities. In the luxury real estate in the city, to redraw the scene in the luxury real estate market in Dubai, the Chinese investor leads them in the first place, followed by the French, German and Swiss. He confirmed that «FAM Real Estate» finished the first four months of 2021 with a figure of two billion.
He explained that the high demand came from France, Germany, Israel and China, in addition to the current demand from Russia, Pakistan, England and India, as sales increased dramatically in 2021 compared to the previous year for real estate, whose value exceeds five million dirhams. In 2020, properties valued at over 5 million dirhams accounted for 5% of total property sales in Dubai.
In 2021, it accounted for 6.6%, and this is 2021 more than the previous year, with an increase of 20%. In addition, in January 2020 the number of real estate sales of more than 7 million sold 30 properties worth 351 million compared to January 2021, as these numbers doubled. 68 properties sold, valued at 861 million.