When it comes to Luxury Real Estate, Dubai is quickly closing the gap with New York and Los Angeles
Dubai, one of the 7 cities that make up the United Arab Emirates, has emerged as a leading contender in the world of luxury real estate. According to experts, Dubai is swiftly catching up to New York and Los Angeles, as it becomes one of the busiest luxury real estate markets in the world after these two cities.
The city's rise in the luxury real estate market can be attributed to an influx of wealthy investors seeking a safe haven from global geopolitical and economic uncertainties. The surge in demand for property in Dubai has been substantial, with a remarkable 80% of Dubai's property transactions by value in 2022 being made in cash. This indicates the city's appeal as a prime location for real estate investment.
According to Experts, 219 properties that were valued at $10 million or larger were sold in the Middle East last year. When compared to London and Los Angeles, London made 223 transactions, Los Angeles made 225 transactions, and New York had 244 agreements that, came up to a total of $10 million or more. With 26 dealings, Dubai was the seventh most active city for sales of $25 million or more.
"Dubai has arrived" was quoted by one of the head researchers of the Middle East. "The increased concentration of the money in the city has been influenced by many factors, ranging from the government's decisive response to the pandemic to the introduction of new residency options for Visa."
Dubai's luxury real estate market has also become a popular choice for hedge fund traders, who are enticed by its tax-free status, simplicity of conducting business, and attraction as a center for international travel. The government's answer to the pandemic and its liberal visa restrictions have enhanced Dubai's allure as a hub for international travel and a center for conducting business.
The city's luxury real estate market encompasses some of the world's most highly sought-after neighborhoods, including Palm Jumeirah's beachfront homes. The city's outstanding relative value continues to drive ultra-high-net-worth individuals (UHNWI) buyers into the market.
Dubai is considered among the best and most affordable luxury house markets in the world, coming on the position of number 16 among the top 20 global prime residential markets. In the recent trends, $1 million will buy around 1,130 sq. ft., which is 104.98 sq. m. of residential space, which is four times as much space as you can allocate in New York, Singapore, and London; these are available in popular areas such as Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills.
There are no signs of this growth to stop. It will continue to rise in the future, which makes investment in Dubai a safe option.
"Dubai's market still displays outstanding relative value," said one of the Experts. "It is the value that continuously drives UHNWI buyers into the Dubai market, most of which are looking for a sun-sand-sea lifestyle which is now available in Dubai. The city is popular among other countries for its beaches, sun, summers, cars, and real estate. Dubai is one of the safest and greatest places to live. Different multi-nationalities living here, from different backgrounds and cultures, make it a great place to live, work and invest in. Read our previous blog here: https://a1properties.ae/blogs/dubai-ranked-best-place-in-the-world. There are also many benefits now, like the new Visa options like Golden Visa, Green Visa, etc. Another benefit is the tourism and places to visit here. There are many real estate alternatives to choose from, including rentals and properties for sale. Dubai is ranked one of the best places to live from around the world by Trip Advisor. You can read our previous blog at the link: https://a1properties.ae/blogs/dubai-world-best-tripadvisor.
Cash purchases are becoming a more popular option in Dubai. According to Experts, in 2022, about 80% of the transactions in Dubai were made in cash which is up by 50% in 2007 and 40% in 2021.
Russians made up a major chunk of foreign buyers of Dubai Real estate in 2017, according to Experts, in January.
According to experts, Dubai's most opulent residence prices are expected to increase the highest globally this year, by approximately 13.5%, after soaring by 44% in the previous year. The city's luxury real estate market is a prime example of the opportunities that are available to investors looking to invest in a thriving and dynamic market.
In conclusion, Dubai's luxury real estate market is on the increase and is quickly becoming one of the most known markets in the world. The city's government response to the pandemic, liberal visa restrictions, and tax-free status have enhanced its allure as a hub for international travel and a center for conducting business. With its attractive relative value and diverse investment opportunities, Dubai's luxury real estate market is poised to continue to get investors from around the world.