Dubai luxury real estate market sets new record

Luxury real estate sales are booming in Dubai — which has become the world capital of “branded homes” — as foreign buyers continue to snap up ultra-luxury homes there, according to Bloomberg .

This week, a buyer agreed to pay 203.1 million dirhams ($55.3 million) for a five-bedroom Baccarat-branded apartment in a project that has yet to even break ground.

According to Luxhabitat Sotheby's International Realty, this is the highest price per square meter paid for a pre-construction apartment. The transaction broke a new record set in February, when a five-bedroom apartment sold for 160.3 million dirhams.

The tower will be built on a seahorse-shaped artificial island near The Jewelry Brand hotel and resort.

Luxury real estate has boomed in Dubai as the rich get richer during the Covid-19 pandemic, and as Russians seek safe havens for their money as their country battles with Ukraine.

Luxury real estate in Dubai has surged 89% - a rapid recovery after a slump that lasted from 2014 to 2020. The market has risen so quickly that many people have been caught off guard and sold at a loss.

Villas in the Four Seasons Residences project in Dubai, which sold for around 40 million dirhams (over $10 million) in 2021, are now worth around 100 million dirhams (over $27 million).

Dubai's luxury housing boom has pushed the value of branded apartments sold there to a record 25.3 billion dirhams ($6.9 billion) in 2022 - accounting for nearly a fifth of the value of all apartment purchases in the city, according to British real estate consultancy Knight Frank.

“Our success in Dubai is driven by the ultra-wealthy, who continue to target luxury homes here,” said Faisal Durrani, head of Middle East research at Knight Frank.

Dubai recently surpassed South Florida to become the home to the most branded projects in the world . There are currently nearly 40 branded projects in Dubai, with dozens more announced and planned for construction by 2030, according to a report from British real estate broker Savills this week.

“Expats come to Dubai, especially Europeans, looking for quality of life, looking for privacy and looking for good services. I can’t name them, but you can imagine there are heads of state, there are top Formula 1 drivers in the world who have come here,” said George Azar, CEO of Luxhabitat Sotheby’s.

Minh Hoa (reported by Lao Dong, Tuoi Tre Online)

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