“The luxury market has never really been stronger; over 10,000 multi-millionaires relocated to Dubai last year, and I would anticipate similar levels of relocation this year,” said Conor McKay of Belleview Real Estate.
Conor, a 25-year-old expat from the United Kingdom, recently sold Dubai’s most expensive property, a 10-bedroom custom-built villa on Palm Jumeirah, for AED280 million ($76.2 million).
To put this in perspective, the most valuable property in London is currently on the market for around $40 million, while the most valuable property in New York is $169 million, and the most valuable property in Hong Kong is $82 million.
“These wealthy individuals require housing, and demand is at an all-time high.” This demand provides opportunities for sellers to sell their properties for fantastic returns, especially if they have owned them for a long time,” he added.
Property prices in Dubai have rebounded strongly, and the number of transactions in April was the second-highest on record.
According to the latest figures released by the Dubai Land Department, a total of 2,043 real estate transactions worth AED7.2 billion were completed during the week ending May 20.
Pheonix Homes followed up Conor’s record-breaking deal this month with the sale of an AED102.8 million villa in the prestigious Emirates Hills development – the second-highest ever sale value there.
But how much longer can the market rise? “ I don’t have a crystal ball, but values are only about 80% of where they were in 2014.
“The difference between now and then is night and day; we have never been in a better position.” Conor added, “The city is truly on the map globally, not just for tourism but also for commerce.”
The government’s efforts to establish itself as best-in-class and prioritize economic growth have boosted property prices.
“Given how strong we are now and how undervalued we are in comparison to the rest of the world, I wouldn’t be surprised if prices exceeded the previous peak and continued to rise steadily for years.”
Conor said that data shows that luxury real estate worth more than AED10 million and lower-ticket investment properties are in high demand right now, as investors seek to profit from rising rents and high net yields.
The usual suspects in the luxury segment, such as Palm Jumeirah and Emirates Hills, remain extremely popular. For investment properties, anything with a good location, preferably with a view of the water, will command a high rent in the market.
