Dubai-based property developer Seven Tides International sold properties worth $152 million in 2020 and expects to see even more purchases this year.
Russian, British, French and Indian investors were among the top buyers of luxury developments such as Golf Views Seven City in Dubai’s Jumeirah Lake Towers and Seven Palm on The Palm Jumeirah.
“These are remarkable sales figures, when we consider what an extraordinary year 2020 has turned out to be. Most of the world was locked down during April and the pandemic has caused disruption throughout the year for many sectors of the global economy, not just hospitality and aviation,” Abdulla bin Sulayem, CEO of Seven Tides, said in a statement Monday.
The economic impact of COVID-19 in Europe is likely to encourage buyers to look overseas, according to the Seven Tides CEO.
“Many investors in the UK and Europe fear higher income and property tax rates, as governments look to reduce public finance deficits, after borrowing record amounts of money to tackle the pandemic. Should that transpire, it could well drive even further investment next year,” Bin Sulayem said.
Seven Palm attracted buyers from across 63 countries, with Russians accounting for 18 percent of the $125 million generated in sales, followed by the British (9 percent) and French (8 percent).
Buyers in Golf Views Seven City belonging to 195 nationalities, spent $26.5 million in total. French buyers accounted for 25 percent of sales, followed by Italians (12 percent), Russians (11 percent) and Indians (6 percent.)
According to the Dubai Land Department data, transactions worth over 72 billion dirhams ($19.6 billion) were recorded in Dubai last year.
However, the supply overhang is expected to dampen prices this year. For the whole of last year, Dubai witnessed the handover of 39,000 residential units, thereby increasing its supply to 595,000, according to real estate and investment management firm JLL.
(Reporting by Brinda Darasha; editing by Seban Scaria)
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© ZAWYA 2021