Dubai is witnessing an enormous upsurge in its property market, thanks to strict policies European countries are carrying out that push the residents to seek comfort outside of their countries. Wealthy international buyers are swamping Dubai’s primary property market, especially the villas market.
The lockdown escapers are driving a buying home in Dubai trend because they could relish many new horizons in the new area. International investors are creating a buying frenzy that is bringing new records in property sales and boosting the economic recovery.
Who is there?
The majority of the international buyers are Europeans who are looking for homes in particularly Palm Jumeirah island and other prime areas like Golf course estates. Dubai’s real estate market which had been in constant decline since 2014, went stabilized upon the country shut the border due to Covid-19 last year. Zhann Zochinke, CEO of Property Monitor states the market went to rise straight after the lockdown period especially in the transaction volumes and it hasn’t stopped ever since.
We are seeing the month-on-month increase and huge transaction volumes in property sales. It’s because Dubai has been one of the first destinations to reopen in the first phase after lockdown. Announcing its reopen policy with strict rules on social distancing and masking, also a restless vaccination sequencer plays a big role to recover its economy. Dubai has contributed to raising the global vaccination rate with its energetic program of vaccination to its residences.
Not only construction
As the inflow of foreigners increased, the tourism industry on the side also boomed and regenerated Dubai’s economy which was previously reliant on oil wealth. Tourism companies admit having witnessed a big bounce in performance since the beginning of this year. David Owen, the economist at HIS Markit, notes it’s boosted by the rapid vaccine spread out.
After years of lay-off, there is the time came for luxurious property to strike with 10 million dirhams sales. With 90 transactions happened in April, and a mansion valued at 111.25 million dirhams has been sold which accounts for the highest cost of sales transaction happened in years. On the same frond, there is the most expensive villa available now is an Italian-inspired villa with 180-degree beach frontage that is being offered 100 million dirhams.
Matthew Bate, CEO of Blackbrick, says he agrees that Dubai is not a construction site with the most number of cranes anymore. Now Dubai is a metropolitan city with marvelous architectural wonders.
Did Covid open the door?
Matthew adds, a lot of people are nowadays base in Dubai and run their businesses everywhere in the world, then, Covid ultimately pushed tons of Europeans to decide the same decisions very quickly. Although the buyers are anxious about whether the market will sustain or not, Property Monitor shows data that April was a month of above than 10 million dirhams property sales. 81 villas in Palm Jumeirah were sold, on the contrary, the year 2020 sold only 54 in total. Morgan Stanley persuades that market volatility is less while the rally isn’t going to stop so soon. It mentions peaking supply, robust demand and new project lead times will lead to a tighter market over the years.
Research & Data group suggests the prime areas will continue showing sales increase. Data Finder shows comparisons between a month to month and it’s in the steady increase path now. Research & Data confirms off-plan projects are on the rising demand through 3 following months, also, aggressive developers that are launching new tiers and phases of the old successful projects are going sold within few hours.