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DUBAI, UAE : As Q4 passes its halfway point, property markets in Dubai have rebounded strongly year on year as demand rises across the sector and government stimulus measures boost economic activity.
A slight decline in real estate prices in the market during the past year due to the pandemic contributed to returning luxury real estate to the forefront of market demand through selective purchase deals in the most important luxury residential destinations in Dubai, led by Palm Jumeirah, which was the highest in demand in Dubai for luxury real estate valued at more than $10 million.
With Luxury real estate contributing to raising the total value of real estate sales in the market during the current year, Ismail Al Hammadi, founder and CEO of Al Ruwad Real Estate, says that all indications point to an upsurge of interest in Dubai’s luxury accommodation sales, kicked off by post COVID confidence and enhanced by a relaxation in the residency rules and regulations, including the recently-introduced retirement visas.
Al Hammadi also noted that the bounce-back in high-end unit movement has also been advanced by the UAE’s hosting of global events like EXPO 2020 Dubai and similarly important events that have been attracting affluent investors to the emirate, including the recently held Cityscape 2021, at which a huge amount of interest was shown in luxury villas and apartments.
“The recovery of the real estate sector has a direct effect on the economy, and vice-versa. We have been witnessing a significant rise in all sectors of the market for some time now,” Al Hammadi said, “but it is obvious to me that government efforts to Dubai encourage foreign investment by creating unique programmes to legally reside in the UAE, allowing investors to secure a stable future for themselves and their families, is driving the luxury sector the most. Add to that the extended benefits of the Golden Visa and the recently revised retirement visa, and we find that high net-worth individuals are at the front of the queue for top of the market properties, which in turn allows this increase in net spendable income to cascade down through the economy.”
He added, “The average price per square foot for luxury residential properties in Dubai in general is approximately US$550, compared to about $1,480 per square foot in Singapore, and $1,830 per square foot in London, while the average selling price per square foot for luxury villas in Palm Jumeirah is about $708. The average annual rent price for luxury residential properties in Dubai recorded an increase of 5-20% for luxury villas and 13% for luxury apartments during the first half of this year.”
The UAE Cabinet approved amending the conditions for granting residency to retired expatriates earlier in November this year in a move designed to achieve more flexibility in terms of residency laws and visa requirements. Retirees over 50 years old and fulfilling certain criteria will be eligible for retirement residency status, the minimum of which are one of the following: owning property (not commercial) worth at least AED1 million, a bank deposit of no less than AED1 million, or an active income of no less than AED180,000 per annum.
Al Hammadi pointed out that Dubai was recently ranked third best place in the world to purchase a holiday home, according to research carried out by Compare the Market and the equivalent of 10% of wealthy owners move to Dubai annually, according to international research reports on wealth migration. “As the regulations are relaxed, the prospects of owning a beautiful property in the UAE have become achievable for a whole new range of investors who can now reap the benefits of living amongst our welcoming society,” he added.
Al Ruwad Real Estate is one of the most respected real estate companies in Dubai and has a spotless record of adherence to the highest levels of quality of service, work ethics and professionalism. It is staffed by a highly trained team of specialized professionals that ensures maximum customer happiness.
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For more information, please contact:
Wael Sarieddine
Email: wael.sarieddine@viola.ae
© Press Release 2021
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