Wednesday, July 28, 2021

Dubai’s priciest homes are selling at their fastest pace since 2015

ONE100 at Palm Jumeirah in Dubai (Image courtesy of Sotheby's)

ONE100 at Palm Jumeirah in Dubai (Image courtesy of Sotheby’s)

More super-luxury homes have sold in Dubai this year than any year since 2015.

The United Arab Emirates city saw 22 sales above $10 million in the past five months, according to Bloomberg News.

That exceeds last year’s total of 19 and was the second-most in one year since at least 2010.

“The rebounding of Dubai’s super prime market echoes a wider global trend, signaling the start perhaps of a Roaring Twenties for global real estate,” said Faisal Durrani, head of Middle East Research at Knight Frank, the publication reported.

The year 2015 marked a peak for Dubai’s luxury market. The market slowed considerably in the following years amid oversupply, lower oil prices, political turmoil and weaker currency in the region.

By 2019, prices were down 25 percent from their 2015 apex. Abu Dhabi also saw a slowdown and in 2019 attempted to boost the market by allowing foreigners to own land for the first time.

Knight Frank recently warned that the glut in properties may continue to put downward pressure on the market.
Most sales above $10 million were for properties on the artificial island Palm Jumeirah. Those sales totaled $770 million.

One was for Michael Alibhai’s megamansion. Alibhai listed the 14,000-square-foot property last summer for $33 million and sold it this year for $30.2 million, according to Barron’s.

Some of the country’s largest developers continue to struggle, however. State-linked firms Limitless and Meydan are restructuring debt and Damac Properties considered — but ultimately postponed — de-listing shares amid losses.

[Bloomberg News] — Dennis Lynch

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