Dubai has ‘ingredients’ to be successful second-home property market
City’s connectivity, safety and security continue are attractive to the affluent looking for a spot to purchase a second home, says Saudi-based Dar Al Arkan’s vice chairman
Dubai’s connectivity to international cities and the UAE’s handling of the pandemic have ensured it continues to attract high net worth individuals looking to invest in the second-home property market, said the vice chairman of Saudi-based property developers Dar Al Arkan Properties.
Ziad El Chaar began his journey with real estate in Dubai back in 2004 and told Arabian Business that it is “really thrilling to see where we were back then and where we are today where Dubai is listed as a key destination for a second homes, for tourism and leisure, and as a destination for safety and connectivity.”
Speaking out of Dar Al Arkan’s experience in the global second homes market favoured by GCC and European investors, El Chaar said the comparative ease of flying into Dubai and commuting around the city is one of its main differentiating factors in the high-end property market.
“One of the reasons we were able to attract an affluent segment to the Dubai real estate market is that they can easily travel into the city, largely through direct flights available on a daily basis, and the furthest distance from the airport is 30 minutes,” said El Chaar.
“Dubai has all the success ingredients: the location, connectivity, safety, security and a regulated market. Also, the UAE, did extremely well in their handling of the coronavirus crisis which attracted a lot of people to say that should another pandemic start, they would want to be in Dubai for it. The ease of opening a business and the tax-free environment that we have is also a major factor in the evolution of the market,” he continued.
Dar Al Arkan’s upcoming projects in Dubai include a collaboration with Missoni to launch Urban Oasis, a tower close to the canal with a view of Burj Khalifa, while last December saw the property developer launch Da Vinci Tower with Pagani, the hyper car manufacturer. Both are co-branded projects, because there is a market opportunity for “limited edition real estate projects like this through collaborations with known brands.”
Dubai aside, Dar Al Arkan is expanding regionally with projects in Oman and Qatar under development.
“We are engaging in the markets of Muscat and Doha as we believe both markets can represent an opportunity for vacation or second home buyers and investors,” said El Chaar.
“It is a diversification so you can have an array of investments across three different types of markets: one driven by entertainment and affluence (Dubai), the other by sports events (Doha), and finally by escapism (Muscat),” he continued.
Dar Al Arkan’s first project in Doha, five low rise buildings one by the city’s seaside corniche, will be launched by end of March.
In Saudi Arabia, Dar Al Arkan’s home market, the company will shift its focus from the middle segment to the upper middle and high end segments of the property market “because we see that there is a gap in that market that we can fill,” said El Chaar.
“Another gap in the market is second homes within Saudi for the nationals and residents. Many would like to buy a second home on the Jeddah Corniche for weekends and vacations by the sea. We are also developing second homes in Taif, a good area in the summer as it has a mild weather for those from Jeddah, Riyadh and Mecca. Six months ago, we started selling second homes in a project in Mecca which people will mainly use for religious visits,” he continued.
In June, Saudi Arabia’s two real estate giants Dar Al Arkan and SNASCO Real Estate signed a joint agreement to develop a luxury residential tower on Jeddah Corniche, an area known for its residential and recreational destinations. The joint venture, aims to drive the development of the luxury property market, and catalyse the diversification and growth of the kingdom’s real estate industry.