Walid Al Zarooni
August 31, 2021
The demand for Dubai real estate is increasingly active by wealthy people around the world, during the period that accompanied the “Covid-19” pandemic, and this came to escape the restrictions imposed by some countries, and to search for an outlet for tourism and shopping, and this is what Dubai provided with precautionary measures that put safety and security People are the top priority.
Supporting the noticeable demand for luxury real estate in the emirate came in conjunction with the attractive real estate prices for purchase, which was an additional incentive, especially with the start of a price rise cycle since the beginning of this year, as villas lead the pace of price improvement, to address the effects that accompanied the pandemic, and the price index recorded higher Its levels since 2014, still have great growth opportunities.
And the first period of the global outbreak of the virus, witnessed caution and patience by the investments of the wealthy, and then this behavior changed after investors realized that Dubai in particular and the UAE in general, offers promising and unprecedented opportunities in the real estate sector, and also comes among the best in the world.
Some interpreted this demand for luxury real estate as being mainly due to the activity of European investors’ money and their search to buy assets in economies linked to the US currency (the dollar). Dubai real estate is also a favorite for wealthy Asians, especially from China and India.
Dubai real estate in general enjoys being a safe destination and a store of value, in addition to the good rental return that is among the highest in the world, in light of the impact of the majority of other asset sectors, and their exposure to large fluctuations, including real estate, so we monitored during the first half of 2021 an increase in demand for villas Luxury apartments with sea view and family homes.
This growth in real estate demand leads the absorption of supply in the market, and encourages the launch of new projects suitable for this category of wealthy people, which achieves the added value in the real estate contribution to Dubai’s economy.
There is no doubt that Dubai’s response to the pandemic was the most important factor in the success of plans to attract the wealthy to housing. With the availability of the anti-virus vaccine to all residents, Dubai has become a destination for obtaining vaccinations, or holding meetings in a safer healthy environment, and lower risks of exposure to infection with the virus.
Dubai also provides a safe and quick exit if the investor thinks of selling his residential unit, as the economic and tourism recovery ensures that demand remains strong, and the possibility of entering or exiting the market smoothly without losing the value of the investment, but on the contrary, it may achieve profits.
The recovery experienced by the real estate market in Dubai, and the desire of the wealthy to acquire a unit in Dubai, takes into account several factors, most notably the economic recovery, extensive government facilities for investors, granting long-term residencies, and also the organization of the Expo 2020 Dubai.
According to the estimates of international research company reports, the prices of luxury real estate in Dubai have declined over the past five years, but they have started to rise with the activity of demand and improving market conditions. Hence, I confirm that the stage of the decline in luxury housing prices has ended in the medium term at least.
Chairman of the Board of Directors of W Capital Real Estate Brokerage Company
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