Why luxury property is at a premium in Dubai, according to real estate expert
A leading real estate agent has revealed that demand for luxury properties is currently outstripping supply in Dubai.
Chris Boswell is one of the emirate’s most successful real estate agents with over $1.15 billion in sales, including the record for the most expensive private residence, sold at $50 million.
He told Arabian Business the first quarter of this year had been “quite possibly one of the best quarters since 2007-2008 and said he has closed over $56m in high-end sales since the start of the year – several in collaboration with co-listing agent Barnaby Crompton.
However, he explained: “For the first time in years demand completely outweighs supply in Palm Jumeirah villas and plots/villas on Jumeirah Bay Island. Not only are villas on Palm Jumeirah selling fast but at record prices per square foot.
“It really has been a frenzy of late. My clients are tired of the high taxes and not feeling safe in their inner cities and many feel let down by the way their governments handled the Covid situation. What really is paramount for many is the safety and security that the UAE offers.”
Chris Boswell is a Dubai-based real estate agent
The value of transactions of luxury Dubai residential property in the first quarter of 2021 rose by 25 percent compared to the year-earlier period, according to research by Luxhabitat Sotheby’s.
A total of 3,450 apartments and 586 villas were transacted in Q1 in the Dubai prime residential market valued at AED11.6bn ($3.1bn), according to analysis based on data from the Dubai Land Department (DLD).
Boswell revealed buyers were coming from Europe, the US and the Far East and is currently representing “several well-known ultra-high-net-worth individuals, sports personalities and leading names in the entertainment industry” as they look to make Dubai their primary residence.
According to consultancy firm Knight Frank, Dubai remains a place to seek out bargains for buyers with deep pockets.
A million dollars can buy 165 square metres (1,776 square feet) of space in Dubai, around five times more than in London or New York. The emirate has 42,356 homes valued at $1 million, second only to the UK capital.
Boswell said: “The international high-net-worth community realised in late 2020 that Dubai was a secure place to reside during the Covid lockdowns across the world.
“I feel that many immediately recognised the value in Dubai and all the amazing things the city has to offer and that prime waterfront real estate was incredibly undervalued by comparison to other major cities around the world. In addition they felt safe and secure under an umbrella of great leadership through an incredibly challenging and difficult time.”
Source: https://www.arabianbusiness.com/real-estate/464134-why-luxury-property-is-at-premium-in-dubai-according-to-real-estate-expert