How Dubai’s luxury property sector is surpassing all expectations

The last six months in Dubai’s luxury property market have been packed with superlatives, from spectacular new homes on the market to record-breaking sales. We anticipated that 2021 will be the year of ultra-premium real estate after the rollercoaster ride that was 2020, from worries of the market collapsing in March to the smashing of a seven-year record in November. So far, the year has not only matched but significantly surpassed, that projection.

In terms of extremely prime houses, 22 residences costing Dhs35m or more were sold in the first five months of this year, a number not seen since 2015. In fact, 3% of the Dhs10.97 billion in sales reported in Dubai’s property market in April were at a price range of Dhs10.97 million or above. It’s an exciting moment to be in the penthouse market, with homes at One Palm and W Residences selling quickly. As projects like The Residences Dorchester Collection and Atlantis, The Royal Residences near completion, we’re witnessing a surge in buyer interest in them.

Villa sales in the city have been especially strong, with Property Finder statistics indicating that one in every three homes sold in the first quarter was a villa or a townhouse. Palm Jumeirah has been a hive of activity, with some of the top frond homes vanishing off the market at an alarming rate. I was ecstatic to be a part of two of this year’s most expensive transactions — both on Palm Jumeirah and with asking prices north of Dhs100 million. These deals occurred within a few weeks of one other, highlighting how rapidly that section of the market is moving right now.

There have also been analogous sales for other frond homes on Palm Jumeirah and in places such as Dubai Hills Estate. We were lucky to conclude H1 with the sale of a spectacular custom-built property for an unknown price — I cannot divulge any additional information at this time due to confidentiality.

However, we are finding that customers who are serious about purchasing a house in Dubai are not deterred by the price. During the epidemic, the city has become something of a safe haven, providing a welcome reprieve from the rolling lockdowns that continue to crop up across Asia and portions of Europe. Anyone who visits Dubai – even for a few months a year – is now wanting to make it their permanent home. And there is no better moment to purchase than now, when prices are considerably lower (and provide far greater value) than in London, Monaco, or Hong Kong.