Luxury property in Dubai is very much what the city is known for. While luxury in all respects has become the trademark of the ultimate modern city, it is property that is its bedrock and its legacy. Now, having been through its boom, and arguably its bust in the last 10 years, the luxury property market in Dubai is proving that it has the gravitas and the security to make for a long term investment with solid foundations.
Sky High With Solid Foundations
After the global crash in 2008, the Dubai property market suffered along with the rest of the world. However, since then, its development has been more slow and steady instead of meteoric - although its architectural feats still remain sky high. While recession was certainly not on anyone’s wish list, it exposed the need for policies and protocols that have now made the luxury property market in Dubai a more solid investment than ever. In particular, that has involved the creation of Dubai’s RERA (Real Estate Regulatory Agency), and changes in the stringent payment plans for people investing. Altered ratios, particularly when it comes to down payments on off plan properties, allow investors to feel that there is a greater spread in the risk between developers and themselves, inspiring higher levels of trust in the industry and its integrity.
Quality Not Just Quantity
One thing that Dubai’s property market has always had in spades is a keen eye for design. Not afraid to invest in the best, and prioritising excellence, it is little surprise that this is a city that has attracted prominent architects, seduced by the opportunity to let their imaginations run wild and push the boundaries of what’s possible.
Following in the footsteps of the likes of Richard Rogers in the UK, Renzo Piano in Paris, and Frank Gehry in the USA (we eagerly await his Guggenheim Museum in Abu Dhabi), who could have previously envisaged the likes of the Burj Khalifa? Furthermore, this is a world where such designs are not merely to look at or be enjoyed as public spaces, they are to be lived in and experienced.
Dubai offer investors the chance to reside in these residential works of art, but it also has its finger on the pulse of modern expectations and consumer demand. In particular, it recognises the wellness industry, building wellbeing into developments in recognition of one of the fastest growing needs and trends, with a global push to make it part of everyday living.
Luxury At The Best Price
Whilst very much a luxury destination, one of the things that makes Dubai a highly sought after place in which to buy now, is its competitive ranking amongst other popular cities around the world. Despite its reputation for being a costly, Dubai was recently placed 34th in terms of the most expensive places to live or visit in the world. Monaco, New York, London, Paris, Rome and Milan Dubai were all more expensive, heralding at the opportunity to buy now in a city with room to grow. For example, luxury property prices in Dubai currently average at $625 psf, providing an easier entry point to the likes of Hong Kong or London where average prime prices are from around $5,000 to $10,000. In Hong Kong the top price achieved in recent years was an eye-popping $28,154 psf .
The Best Time To Buy
All this is well and good, but how do we know the luxury property market in Dubai is still set to grow? A number of things point to the trajectory of a sustainable new dawn.
Firstly, according to the 2017 Annual Transactions report released by the Dubai Land Department (DLD), Dubai’s real estate market attracted investors globally that year, including Gulf nationals, Arabs and foreigners, with almost 40,000 investors undertaking around 53,000 transactions worth in excess of Dhs 107 billion. Then by May 2019, Dubai’s property market reported f our consecutive months of growth with a pipeline of interested customers. This year, investment oracle and billionaire investor, Warren Buffett , also announced plans to enter Dubai’s real estate market. Equally, it is just a year away from the Expo 2020, the world expo to be hosted by Dubai and expected to inspire more visitors and business opportunities creating a significant rise in property values.
For those who travel to, live in or work in Dubai, its lifestyle and its charms are abundantly clear, but for the property market it isn’t just a case of having a nice place to call home. The luxury property market in Dubai is entering a new phase in its history, one that’s starting to gain international recognition and making it arguably the best time to invest in the luxury property market for the long term.