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Luxury real estate sales boom — demand grows to 10 million US dollars

Luxury real estate sales boom — demand grows to 10 million US dollars

The analytical agency Knight Frank indicates that in the first 6 months of 2021, more premium-class real estate was sold than in the whole of 2020

By July of this year, buyers have already bought 22 luxury residential properties with a total cost of 770 million US dollars. In 2020, only 19 objects were purchased.

The trend of buying real estate in Dubai from 10 million dollars mainly indicates a global shift in the residential sector towards growth, given that the Emirate is showing the best results since 2015.

Dubai has always been known for low prices for premium real estate compared to other world market leaders, so the growth in the Emirate allows us to predict changes in other regions.

Knight Frank believes that the sharp increase is largely due to the government's successful fight against the coronavirus pandemic. This will allow the government to reduce the number of coronavirus restrictions and normalize the situation in the Emirate.

Faisal Durrani, head of Middle East Research at Knight Frank, says: "Luxury real estate is always a key indicator when assessing the prospects of the entire sector and, looking at Dubai, we are witnessing an amazing recovery in sales of such real estate."

Durrani explains the growth in demand for premium real estate by a long decline in prices for this offer in recent years. Today, five times more objects can be purchased in Dubai for $ 1 million than in other market-leading regions: London, New York and Singapore.

At the moment, expensive life in the Emirate is cheaper than ever.

Some data also show that the cost of living in Dubai is 20% lower than in Singapore or Hong Kong. The decline in this cost has been gradual since 2010. Compared to 11 years ago, prices for all types of goods decreased by 10%, and the rental rate decreased by 45%.

Palm Jumeirah stands out among the districts of Dubai in terms of sales of luxury real estate. There, the most expensive objects — villas — were sold for a price of $30.3 million. Durrani calls the upcoming decade "The turbulent twenties" for the global real estate market, pointing out that at the moment Dubai has 42,000 houses worth $ 1 million and only London is ahead of it in terms of sales growth.

It is worth noting that against the background of the growth of the premium sector, the leading developer of the Emirate-Emaar Properties has a more positive outlook and a credit rating from S&P Global Ratings.

The agency changed the forecast from negative to stable, indicating that one of the key areas of Emaar's activity is luxury housing. Due to the upward trend in this sector, there is no reason to believe that the development of Emaar will not enter the growth period.

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