There were 45 deals featuring Dh15 million or more homes – will it be another record year?
Dubai: It is no sedate start to 2023 for Dubai’s property market, with 45 homes fetching prices of Dh15 million and more in the first 15 days of the year. The impression is that Q1-2023 will be just as strong for high-value homes as full-year 2022 was, when Dubai set new records for the number of sales and what these properties fetched.
There were over 1,200 deals involving properties of Dh15 million and over in the whole of 2022 – and that compares quite well against the average of 150 such transactions happening annually between 2012-18. “There’s no slowdown in demand and deal flow that anyone can see for now,” said Firas Al Msaddi, CEO of fam Properties. “Dubai property sales of high-end homes have got off to an exception start in ’23 – it’s unlikely demand is going to slacken.”
Concerns expressed by some market-watchers as to how long the demand run in Dubai’s premium home space can run have so far been unfounded. As for the overall property market, just under Dh10 billion worth of sales was recorded in the first 10 days of January, according to DXBInteract.com.
“Based on current demand, I believe the luxury property segment in Dubai is rock-solid,” said Al Msaddi. “Luxury projects built in the most desired locations of Dubai will continue to be world-class trophy assets, similar to what we see in Central London. Fundamentally, Dubai ticks all the boxes for billionaires around the world.
“Moreover, most of the luxury projects launched in Dubai in the last two years are branded residences.”
That’s right, and there are more entering the market. Just recently, the developer MAG released more of The Ritz-Carlton limited edition residences, these with price tags of Dh200 million. The earlier set of these branded mansions, being built near the Dubai Creek-side, were tagged at Dh177 million each.
“Branded residences such as the Ritz-Carlton, those at Atlantis The Royal Residences, and the On Za’abeel (near Dubai World Trade Centre) are what’s getting a lot of buyer attention,” said an estate agent. “There remain instant cash buyers for such property in Dubai.”
Last year, pricey homes and high-value plots on the Palm, Dubai Hills, Jumeira Island and Emirates Hills easily found those buyers. Interestingly, branded residences within high-demand locations were just as sought after. For instance, according to DXBInteract.com data, there were 69 Six Senses Residences sold on the Palm, delivering sales of Dh2.1 billion.
That holds up really well when you consider that the 124 villas sold on the Palm in 2022 netted Dh4.5 billion for their sellers. Or that, at the ‘Address Hillcrest’ enclave in Dubai Hills, there were 112 deals for Dh2.7 billion.
“Branded residences in Dubai still has lots more to deliver demand-wise; this will be where some serious price action is likely in 2023,” said an estate agent. “Discounts and incentives on payment plans are happening in the entry (Dh550,000 plus) and mid-market (from Dh1.2 million) categories. We are not seeing much of that in luxury home sales.
“Developers or sellers may no longer be able to jack up their asking prices overnight on luxury homes – and they would do well to close these deals in the shortest time. Beyond that, everything points to another record year for luxury property demand in Dubai.”
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