Demand for luxury homes in Dubai to hit an all-time high as COVID recedes

According to the leading real estate brokerage Union Square House (USH), homeowners' and investors' hunger for Dubai luxury residential units has hit an all-time high.

According to the leading real estate brokerage Union Square House (USH), homeowners’ and investors’ hunger for Dubai luxury residential units has hit an all-time high.

From 2021 till now, the luxury homes by all major builders in Dubai have been sold out entirely and are now being traded at a premium on the secondary market.

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This is a significant difference from what was seen during the COVID-19 pandemic.

When the pandemic was on its verge, every luxury residential unit that is worth more than $1 million seemed to be a burden on the real estate market in Dubai, as per the report, while adding that premium residentials were barely being sold. At the time of the pandemic, Dubai diverted into a predominately buyer’s market.

In 2020 and 2021, several investors adopted a buy-to-let model, which included purchasing small-scale, low-ticket units in bulk to get higher returns on investment.

Tourism was basically driven by low-income investors who were most probable to go for smaller, affordable units.

Gaurav Aidasani, the founder and managing director of Union Square House, said, “Based on sector-wide sales performance, luxury real estate was struggling at the pandemic’s peak. Over the last few years, scarce developers have rolled out high-end units. The slow market representing the pandemic era brought Dubai’s lack of luxury real estate supply.”

“The start of this year marked a new stage for the real estate sector in Dubai, with the high swing from market oversupply to high demand for lavish properties continuing to bring market repercussions. As a result, we will be seeing the launch of many new luxury real estate projects in Dubai by the end of this year.”

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With the pandemic reaching to an end, all that is changing. More and more people, primarily millionaires, are moving to Dubai with their families and financing in holiday homes as well as permanent homes.

As per New World Wealth, Dubai’s high-net-worth individuals (HNWIs) residents rocketed to 54,000 HNWIs in June 2021 from 52,000 in December 2020, acquiring a growth of 3.8%.

USH has obtained the “Top Real Estate Agency” award from Emaar Properties for the last ten years in a row, Dubai Properties (seven consecutive years), RERA (2021), Dubai Holding (2021), Meraas Properties (two straight years) and DAMAC Properties (2021).

Other noteworthy awards include Nakheel (Top Performing Number Two Agency for 2021), Majid Al Futtaim (First Performing Partner for 2021) and District One Meydan (Number One Agency for 2021).

Tariq Saeed

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