Metropolitan Premium Properties expects the luxury real estate sector to grow by 15-20% this year, exceeding the expected overall market growth of 10%. This strong growth in the luxury real estate sector in Dubai is due to several factors, including the limited supply of available units, especially completed real estate units.
This shortage of available units leads to higher demand and prices, especially in the luxury secondary real estate market. Investors are also attracted to the pioneering lifestyle that Dubai offers, which is unparalleled, as well as the safety and security, investor-friendly government policies, and safe investment environment. Moreover, Dubai is proud to offer one of the best real estate returns in the world, surpassing those provided by some of the most important major global cities, such as London and New York, with real estate prices remaining relatively low compared to those global cities and destinations. Distinctive tax incentives also enhance the city’s attractiveness to investors.
Penthouse.ae, the division specialized in providing real estate services to high-net-worth individuals within the company, announced achieving record sales last March. Petri Manella, Head of Luxury Real Estate at Penthouse.ae, said: “We are currently witnessing a remarkable boom in the luxury real estate market in Dubai. Investor confidence in Dubai’s luxury real estate market is also rising. While the number of real estate transactions, each of which exceeded $10 Million in value in 2020, was very small, last year recorded a huge increase in the number of these transactions to reach 419 real estate transactions, which indicates the increasing demand for luxury real estate.
Manila added: “The demand for ultra-luxury real estate has reached its highest levels, against the backdrop of limited supply and the growing number of global investors looking for safe and profitable investment opportunities. The many wonderful and unique advantages that Dubai enjoys, from its global connectivity, excellent lifestyle and investor-friendly environment, enhance this city’s position as a leading destination for luxury real estate. The market currently reflects this level of demand, with average off-plan property prices reaching AED 15,000 per square foot, while secondary units reach AED 10,000 per square foot.”
According to the company, Palm Jumeirah, Jumeirah Beach Residence, Downtown Dubai, The World Islands, Palm Jebel Ali, and Dubai International Financial Center are among the most popular luxury real estate locations among investors. The prices of luxury villas have witnessed remarkable growth, as villas in Jumeirah Islands recorded a significant increase in their prices over the past year, amounting to 65%. In terms of the secondary real estate market, the real estate units in Six Senses, Sensoria Tower and Jumeirah Beach Residence are particularly attractive.
The company has seen increasing interest from buyers from Europe, America, Central and South America. Waterfront properties and branded residences are still in high demand from investors.