Dubai’s luxury home market will continue its golden run in 2022

“The market, overall, will benefit from an influx of foreign investors as there is also increased demand from Ukrainian and Russian buyers,” Ata Shobeiry, CEO of Zoom Property, said in a statement.

“Additionally, visa reforms, expat-friendly policies and high profit potentials continue to attract investors from around the world, making Dubai a lucrative market for property investment,” Shobeiry said. “The luxury real estate market will maintain its upward trajectory in 2022 with more upscale buildings and projects on the rise. As a result, wealthy foreign investors will be more interested in the sector.

The year 2021 has seen increased activity in the luxury housing sector, as it recorded a 40% increase in prices compared to the previous year despite the challenges of the pandemic. A record total of 93 homes worth $10 million or more were sold in 2021, with the average residential value climbing 9.2%, with villas posting a significant jump of 21.2%.

The most expensive apartment was sold at Burj Khalifa Zone 4, Downtown Dubai, for Dh73 million during the first quarter of 2022. It was followed by an apartment at Dorchester Collection Dubai located in Business Bay. The ultra-prime apartment was sold for 69 million dirhams.

Next, The Royal Atlantis Resort and Residences at The Palm Jumeirah sold a high-end apartment for 63 million dirhams. Luxury apartments in W Residences Dubai and Serenia Residences Building B, both located in The Palm Jumeirah, have sold for Dh57 million and Dh50 million respectively.

Palm Jumeirah sold the most expensive villa worth Dhs 87 million during the first quarter of this year. Another villa worth Dh30 million was sold on Island 2. This was followed by luxury villas at Dubai Hills Estate, Nad Al Sheba Third and Al Hebiah Fourth, which sold for D29 million respectively. Dh, 22 million Dh and 10 million Dh.

On Thursday, the real estate agency Belleview Real Estate announced that it had sold a villa in Palm Jumeirah for a record price of 280 million dirhams. The previous long-standing record – of Dh185m – was unbeaten since 2015.

In a bid to earn higher profits, many luxury home owners in Dubai are delaying their plans to sell properties as prices are expected to rise further. In particular, areas such as Palm Jumeirah, Jumeirah Bay, District 1 and Dubai Hills are expected to see a 10-15% increase in annual price increases.

According to Zoom Property Insights, there is a strong expectation of a record increase in luxury home sales of over Dh100 million in Dubai.