Will It Be Another Record Year With 45 Purchases Involving Homes Worth Dh15 Million Or More?
The Dubai property market is off to a rousing start in 2023. With 45 houses getting Dh15 million or more in the initial 15 days of the year. The perception is that the first quarter of 2023 will be just as robust for high-value residences. In the full year of 2022 when Dubai broke new records for the number of sales and the prices paid for these properties.
In 2022, there were approximately 1,200 purchases involving properties worth Dh15 million or more. Which compares well to the yearly average of 150 such sales between 2012 and 2018. “No one can predict a slowing in demand or deal flow right now,” said Firas Al Msaddi, CEO of FAM Properties. “Dubai property sales of high-end residences have gotten off to an excellent start in ’23; demand is unlikely to wane.”
Checks All the Boxes for Billionaire Purchasers
Concerns expressed by certain market observers about the length of the demand run in Dubai’s premium home area have thus far proved misplaced. According to DXBInteract.com, overall property market saw sales of just under Dh10 billion in the first ten days of January.
“Based on current demand, I believe Dubai’s luxury property category is rock strong,” Al Msaddi added. “Luxury projects created in Dubai’s most desirable sites will continue to be world-class showpiece assets. Akin to what we see in Central London. Fundamentally, Dubai checks all the criteria for global billionaires. “In addition, the majority of the luxury developments launched in Dubai in the last two years have been branded apartments.”
That is correct, and more are joining the market. The developer MAG has unveiled more of The Ritz-Carlton special edition apartments, with prices starting at Dh200 million. The previous set of these branded houses, which were being built near Dubai Creekside, was priced at Dh177 million apiece.
Launch – And Then Relax
“Branded properties such as the Ritz-Carlton, Atlantis the Royal Residences, and On Za’abeel (near Dubai World Trade Centre) are attracting a lot of buyer attention,” an estate agent stated. “In Dubai, there are still fast cash purchasers for such property.”
Last year, those purchasers were easily found for expensive mansions and high-value plots on the Palm Jumeirah Island, Dubai Hills, and Emirates Hills. Surprisingly, branded houses in high-demand neighborhoods were equally as desirable. According to DXBInteract.com data, 69 Six Senses Residences were sold on the Palm, resulting in sales of Dh2.1 billion.
That makes sense when you realize that 124 villas sold on the Palm in 2022 netted the sellers Dh4.5 billion. Alternatively, that there were 112 deals for Dh2.7 billion in the ‘Address Hillcrest’ area in Dubai Hills.
“Branded properties in Dubai still have a lot more to deliver in terms of demand. This is where some major price movement is inevitable in 2023,” an estate agent stated. “Discounts and bonuses on payment plans are being offered in entry (Dh550,000 and above) and mid-market (around Dh1.2 million) categories. That is not common in the sale of luxury homes.