After nearly 2 years into the pandemic, many across the world are fed up with strict lockdowns. Even in countries like England, France, China, and India, affluent citizens want to escape the government’s suffocating restrictions and travel to a city where curfews, as well as lockdowns, are lifted. And what better place than Dubai?! Ever since the UAE government relaxed covid-19 restrictions, more and more people were and still are looking to settle in Dubai. Particularly, the world’s wealthiest accumulate a higher percentage of the incoming foreigners – which was evident in Dubai’s luxury real estate soaring transactions in H1 2021.
What Makes Dubai The Best For Luxury Homes
It is safe to say that Dubai has recently been an attractive option for high-net-worth individuals around the world. Global citizens from different nationalities agree that Dubai is the perfect place for property investments now – in terms of both, affordable and luxurious properties. Introducing long-term visa options, maintaining a successful vaccination drive, launching Expo 2020, and continuously releasing superlative developments, have all contributed to Dubai’s incomparable value for luxury real estate. Despite the fluctuations that took place the past year, Dubai’s luxury real estate market remained more affordable than other cosmopolitan cities.
A study released by The Knight Frank report analyzed what a prime property worth $1 million could buy in each of the following cities:
- New York: 334 sq.ft. of luxury property
- Singapore: 338 sq.ft. of luxury property
- Geneva: 441 sq.ft. of luxury property
- Hong Kong: 237 sq.ft. of luxury property
You will even find similar prices in cities like Paris, Monaco, and Shanghai. That’s not good value for money. On the other hand, Dubai offers you more than twice the value with $1 million, getting you a huge 15,369 sq. ft. of luxury property at an astoundingly low price per sq. ft. of approximately $650..
That’s pretty damn tempting! Wait… it gets even better. Dubai is also home to some of the world’s most iconic property developments like the Burj Khalifa- which sets it apart from many other markets. Dubai will be further expanding its developments to sustain its growing population where buyers will have a plethora of prime properties to choose from.
Adding to the previous point, people in Dubai enjoy high standards of living, with the best household and delivery services being relatively cheaper than in other popular cities. I mean where else in the world can you get petrol or even a single bottle of soda, for example, delivered to your door for barely any extra cost?! So, when we say Dubai is home to luxury, we literally mean it on all levels! Keep in mind that luxury isn’t only in terms of the high-end amenities and leisure activities available but in comfort and safety. Dubai has been ranked as one of the safest cities in the world – which thousands of females and families can attest to!
Last but not least, Dubai has a huge advantage over other global cities when considering tax systems. Foreign property investors can benefit from the UAE’s tax-free system and innovative entrepreneurial environment which makes business transactions much more convenient. So, with a business-friendly set-up, favorable ROIs, long-term visas, ideal time zones, and upscale experiences, demand for luxury real estate will continue to surge.
Best Areas for Luxury Properties in Dubai
Since we’ve already established Dubai as an ideal destination for luxury real estate, the next step would be figuring the top-performing areas. However, to make our analysis more accurate, I will split Dubai’s luxury properties into villas and apartments. According to Bayut’s listing data, the most popular areas for luxury apartments in 2021 so far are Downtown Dubai, Palm Jumeirah, Jumeirah Bay Island, Dubai Marina, and Bluewaters Island. Dubai also offers extravagant penthouses with prices varying from $270K to $25M, depending on the property’s size and location.
Moving on to luxury villas, where Emirates Hills was the most targeted area, followed by Palm Jumeirah, The World Islands, and Jumeirah Bay Island. Emirates Hills villas particularly are a favorite due to their affordable luxury and lavish amenities. According to the property reports, Jumeirah Bay Island remains the most expensive option. Overall, luxury villa prices in Dubai rise well over $41M, depending on the size and location. In fact, the most expensive villa ever sold in Dubai was a vast Jumeirah Bay Island mansion by an unknown European businessman. Jumeirah Bay is a prestigious new man-made island located just off Dubai’s coast – marking as an elite location. You can say it’s a playground for the rich and famous. On the other hand, Palm Jumeirah had the lion’s share in terms of sales volume. It has been actually topping the list in best performing areas for luxury real estate according to property reports in H1.
With all the positive changes happening in the country, Dubai’s luxury market will continue to enjoy high volume of transactions, with locations like the Palm Jumeirah attracting foreigners as well as local investors. Regardless, the UAE government is undeniably a resilient one which successfully overcomes any crisis. Whilst property prices are begining to rise, buying real estate now is a no brainer! Even if you couldn’t afford owning real estate entirely on your own, you can always go for real estate crowdfunding platforms like smartcrowd.ae!