Dubai’s luxury realty sector set for a boom
Dubai has reinforced its status as a destination that millions wish to live and work in thanks to the remarkable manner the UAE managed to overcome the pandemic challenges.
Dubai’s real estate sector, which witnessed a strong market performance that led to more than 40 per cent jump in luxury property prices in 2021 despite the pandemic challenges, is poised to thrive in 2022 on the back of rising demand from affluent buyers from across the globe, leading luxury property developer PNC Menon said.
Dubai has been able to better position itself as the destination of choice for high networth buyers and business investors. Attractive visit and residency visa reforms, 100 per cent business ownership rules, and a successful vaccination drive are among a host of innovative initiatives taken by the government to woo global investors,” the chairman and founder of Sobha Group said.
The positive impact of Expo 2020 Dubai, which has recorded more than 8.9 million visitors since its launch in October 2021, has also provided the right impetus for the buoyancy, Menon told Khaleej Times in an interview.
“Dubai is a great place to do business and one of its most attractive advantages is the diversity of prime properties available for purchase. From lavish villas and fully-serviced apartments to premium penthouses – Dubai’s luxury properties’ portfolio is quite unrivalled. I have always maintained that there is no place in the world better to visit, live, work and invest than Dubai and now we see that the world’s wealthy have their eyes firmly set on Dubai,” he said.
On the availability of ready-to-occupy luxury properties, he said the demand for luxury villas and units witnessed significant growth and high sales rates during 2021. “As one of the leading real estate developers in the UAE, Sobha realty is committed to launching iconic projects that meet the increasing demand while embodying the vision of Dubai as a global destination and a hub for luxury housing.”
Sounding upbeat about the outlook for the luxury segment, Menon said with the economy showing clear signs of rebound aided by a successful vaccination programme and the gradual opening of international borders, the real estate sector is positive about the market sentiment and expects it to pick up.
The Dubai Land Department annual report that the emirate’s realty sector marked a milestone in 2021 with real estate transactions rising to 84,772 and hitting Dh300 billion in value — a growth of 65 per cent in terms of transactions, and 71 per cent in value compared to the previous year.
Menon said Dubai has reinforced its status as a destination that millions wish to live and work in thanks to the remarkable manner the UAE managed to overcome the pandemic challenges. Dubai could project itself as the safest place in the world to spend holidays amid the spread of the pandemic. The UAE was among the first few nations that reopened doors to tourists from all over the world.
On the impact of escalating construction costs on the real estate sector, the seasoned builder who has established strong brand equity for luxury developments in Oman and India, said local developers are adapting to the changing scenario although the sector has been challenged by supply chain disruptions due to the pandemic.
“At Sobha Realty, we adopt a unique backward integration model that enables it to have complete control over its supply chain and deliver international quality products on time with transparency. We employ in-house resources to develop projects from ideation and conception to construction and handover,” said Menon.
Menon said he was very optimistic about 2022 following a year of expansion. “On the back of the UAE’s strong economic recovery and based on the encouraging response from investors, Sobha Realty has achieved its revised sales target of over $1 billion for 2021. We have consistently expanded our offerings at our iconic Sobha Hartland development – the luxurious freehold community in Dubai’s Mohammed Bin Rashid Al Maktoum City. We are bullish about 2022 with many plans and projects already underway.”
He said Sobha Realty has acquired 11 million square feet of land for new developments. “We are also making our mark on Sheikh Zayed Road with the S Tower launch later this year. With these iconic developments and future-ready communities in the most sought-after locations in Dubai, we continue our impressive journey of creating world-class residential projects that ensure unmatched living experiences.”