Appetite for Dubai luxury residential units among investors and homeowners is hitting an all-time high.
From 2021 to date, luxury residences by all major developers in Dubai have been fully sold out, and are now trading at a premium on the secondary market.
This is a marked difference from what was witnessed during the Covid pandemic.
At the height of the pandemic, every luxury residential unit worth more than $1 million was considered by many brokers to be a burden on the real estate market in Dubai, and premium properties were barely selling.
During Covid, Dubai turned into a predominately buyer’s market. In 2020 and 2021, most investors adopted a buy-to-let model, purchasing small-scale, low-ticket units in bulk to achieve a higher return on investment.
Tourism was primarily driven by low-income investors who were more likely to opt for smaller, affordable units.
Post-Covid era sees investor interest increase in luxury properties
With the pandemic coming to an end, all that is changing. More and more people, especially millionaires, are moving to Dubai with their families and investing in holiday homes and permanent residences.
According to New World Wealth, Dubai’s population of high-net-worth individuals (HNWIs) soared to 54,000 HNWIs in June 2021 from 52,000 in December 2020, achieving a growth of 3.8 percent.
This column does not necessarily reflect the opinion of overwrite.ai and its owners.
Author, Anup Oommen, is a Middle East Journalist and Digital Editor for Arabian Business
This story has been published without modifications to the text. Only the headline and cover image has been changed.
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