Number of luxury developments in Dubai real estate market will double in 2022

Number of luxury developments in Dubai real estate market will double in 2022

According to various industry specialists, market experts and analysts, the upscale real estate market in Dubai will continue to thrive in H2 2022, as currently, ultra-luxury units in the emirate are not able to cater to the surge in demand from end-users and foreign investors. The high demand for prime properties in the emirate is due to the influx of high net worth individuals, millionaires and entrepreneurs, who are opting to relocate or purchase a second home in Dubai.
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Published October 7, 2022
In order to compensate for the lack of luxury units on the real estate market in Dubai, Emaar Properties has launched an array of highly successful branded developments in the vibrant Emaar Beachfront development. Among those released in 2022 in this waterfront neighbourhood are Address Residences – The Bay, which houses an array of 1-3 bedroom apartments, and Beachgate by Address which includes a collection of 1-4 bedroom apartments, penthouses and duplex penthouses.

That being said, while Beachgate by Address is strictly a residential tower, Address Residences – The Bay will also house a 5-star hotel. As a result, occupants of the latter development will be treated with access to all hotel amenities, including a fully-equipped gym and will receive residents' discounts on hotel services.
According to the latest Henley Global Citizens Report, 4,000 HNWIs are expected to move to the UAE in 2022 thanks to the country's resilience in handling the COVID-19 pandemic, successfully hosting Expo 2020, as well as offering outstanding travel connectivity, 100% foreign ownership of companies, and various residency by investment programmes.

As stated by Prathyusha Gurrapu, Head of Research and Advisory at the real estate consultancy CORE, since Q4 2020, upscale properties have witnessed a significant increase in sales. In fact, last year (2021) this segment registered the highest number of secondary market deals above AED 10M (USD 2.7M) in the past 10 years, with the iconic Palm Jumeirah accounting for almost 35% of these real estate transactions.

This year (2022) recorded a whopping increase of 140.2% in prime transaction volumes exceeding AED 10M in the first quarter, compared to the same quarter in 2021. In particular, 483 deals above AED 10M were concluded during the period of January-March in contrast with 2021 in Q1 2021.
The CORE report also says that as a result of ready stock in the luxury segment having been snapped up by HNWIs, the prime off-plan market is on the rise. Recent launches such as AVA at Palm Jumeirah and Cavalli Estates, are illustrating this trend and have seen strong absorption. In fact, this year the prime real estate market is expected to double, to match the demand of potential wealthy investors.

Not forgetting the reformed visa rules, which came into effect on 3rd of October, allowing property buyers to benefit from a 10-year Golden Visa when investing a minimum of AED 2M (USD 545K) in a completed property. This move will attract even more overseas investors venturing into the market.