This week has seen another hot market in Dubai as it seems the real estate market is taking after the climate. Activity is high and with each new launch comes an influx of buyers. It really doesn’t show any sign of slowing down.
Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you from having to click through.
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Property Headlines This Week
- The New Dubai Land Grab – In Dubai, anything is feasible thanks to innovative technology combined with daring design and meticulous attention to detail. The United Arab Emirates does not have as many purpose-built projects compared to other established markets but Tahir Majitia has been educating people about buying land for personal or investment purposes. During 2022’s first three months, there were 20,521 transactions worth 55 billion AED which indicates robust demand for real estate in the city; 884 plots were sold during this time period with an increase of 17%. This trend continued into the 4th quarter 2022 when 28 780 transactions worth 81 billion AED occurred along with 1 044 plot sales valued at 12 5 billion AED – showing that more individuals/families are investing in lower-cost options than major players/large investors do.
- Demand For Luxury Dubai Property Has Not Been Dented By Interest Hikes – The market performance of Dubai over Covid has not been affected by financial factors, unlike the global recession in 2008-09.
Despite interest rates being raised in 2022, real estate sales still increased by 128.5 per cent year-on-year due to an elastic demand for property and a shift towards cash buyers filling the void left by finance buyers who are unable to afford higher mortgage down payments. The continued uplift in the market is largely attributed to Dubai’s presence on a global scale that does not require any major event or host city status for it to be noticed – leading many people to expect this slowdown might be even further off than initially thought.
- A Penthouse Rented For Record Dhs1.7 Million in Dubai – The One project from Omniyat on Palm Jumeirah was the setting for a huge rental deal in Dubai, with a four-bedroom penthouse being leased out to an eager tenant for Dhs1.7 million (about $460,000) per year. The Metropolitan Premium real estate company completed this deal which is one of the largest residential rental deals in Dubai this year and follows another villa lease last November at Dhs4 million (about $1.1 million). Alexander Melnikov, director of sales at Metropolitan Premium Properties noted that demand has been high due to its exclusive offering and fantastic views of Palm Jumeirah despite the expensive fees associated with it.
That is all we have for you this week. If you have any comments or questions on this week’s news summary then please feel free to send us an email at [email protected] – if not, see you next week.