In the UAE, wealthy buyers compete for the right to own exclusive real estate. You can become a proud owner of property in Riviera Mbr, or Rukan Lofts in the UAE, but first you need to find out about the latest tendencies in the real estate market of the city.
Competition between luxury homebuyers intensifies in UAE
In the United Arab Emirates, competition between wealthy buyers of exclusive real estate has intensified. The closest attention of investors in the segment of super-expensive properties is riveted to the already iconic areas of The Palm Jumeirah and Emirates Hills.
Experts predict that over the next 10 years the number of dollar millionaires and billionaires in the UAE will grow by 40%. At the same time, in terms of the number of first countries, the country may take a leading position in the world already this year, since about 4,000 more wealthy people are expected to move here in the coming months. Most come from Russia, India, Africa and the Middle East.
With all these factors taken into account, it is logical to assume that the ultra-luxury real estate sector in Dubai will continue to thrive in the coming years, with positive market sentiment reigning, and buyers from all over the world seeking their coveted address in prestigious residential enclaves of the emirate.
The most attention of investors in the segment of super-expensive properties is riveted to the already iconic areas of The Palm Jumeirah and Emirates Hills, which demonstrate rapid sales of exclusive ultra-luxury villas, including custom-built ones.
The Dubai real estate market has been in full swing during several months now and one by one it sets records for the largest number of transactions and the most expensive properties. But, despite a rather sharp turn in prices, the cost of villas is moving up along the smoothest trajectory relative to other segments and has not yet reached the highs of 2014. This suggests that the potential for profitable investments in this sector is still quite large.
The flip side of the influx of wealthy people into the emirate has been a lack of upscale facilities. Since supply remains approximately the same against the backdrop of growing demand, each new release turns out to be an increasingly expected and significant event.
The villa of dreams
The latest high-profile offer to rock the market is the XLV Residence in Dubai, which is listed for sale for AED 225 million (USD 61.2 million). At the moment, this is the most expensive lot in the Emirates Hills area: a unique format of a completely ready-to-live-in residence on a plot of 5 hectares, which can accommodate up to 300 guests at a time.
The Palace Villa is furnished and decorated in collaboration with brands such as Cavalli, Fendi and Gaggenau, and materials and design elements are exclusive even to a realm of luxury like Dubai.
The residence has:
- seven spacious bedrooms,
- a guest suite,
- a reception room,
- a cinema room,
- a wine cellar,
- a dance and games room,
- an outdoor pool overlooking the golf course,
- a wellness center with a sauna and a gym,
- main and service elevators,
- staff rooms,
- home office and more.
Rental prices in Dubai are on the rise
The latest report prepared by CBRE experts shows the increase in the average rent over the past year. On average, rents increased by 19.1%, but the specific figures depend on the type of property.
- The rent for a villa increased by 24.3%,
- for apartments – by 18.3%.
It is noteworthy that this growth is a record: today, the growth rate of rent shows the most rapid turnover since 2014. Experts also indicate the average figures for the cost of rent. On average, you need to shell out about AED 249,677 per year for renting a villa, and about AED 83,485 per year for an apartment.
Specialists also noted the areas in which the highest rental rates are observed. The average rental price on the artificial island of Palm Jumeirah is around AED 213,760 per year. But at the same time, other areas of Dubai show great investment attractiveness and real estate profitability.
Real estate in Dubai
Do you want to buy property in Dubai for permanent residence or income generation? Visit Emirates.Estate website, and our experts will help you choose the best options that suit your budget and requirements.