Not so much in spite of, but Dubai's premium real estate segment showed incredible growth in 2021. Due in no small part to this type of property, the emirate's market has achieved exceptional historical results.
By the end of 2021, an average of 17% increase in prices was recorded in Dubai. A record number of new investors and wealthy buyers who want to buy luxury villas and penthouses have arrived on the market. A wide variety of long-term records were broken in price growth, volume and number of sales.
Due to the unprecedented demand for real estate of the highest price category, the available supply of such goods on the market has significantly decreased.
The developers of the emirate have already planned the launch of many new construction projects in 2022. But buyers should expect a high rise in prices for such real estate, as their growth will spur not only the prevailing demand, but also a significant increase in prices for building materials.
Nevertheless, at the moment, four main areas of luxury real estate have already been identified, the demand for which will grow in the near future:
- Real estate in coastal areas;
- Real estate related to luxury hotel brands and franchises (for instance, The Address, Dorchester Collection, Fairmont brands);
- Real estate for family holidays or accommodation;
- Real estate with a large number of recreational facilities (for insyance, swimming pools, spas, gyms).
It is noted that in 2022, villas, especially large-sized ones, will remain the main product on the market. Apartments, occupying more than 80% of the market, are still a «secondary» product.
