Luxury properties in Dubai are in “short supply” with a greater demand for high-end real estate and better-quality properties, according to a property development firm.
One of the driving forces behind the demand for the so-called luxury properties is an influx of Russians coming into the UAE. This was a more recent influx similar to the Arab Spring several years ago where it had led to an influx with a lot of “high net worth” people moving to the country, Gavin Comerford, projects director at CHI Sol Investments Limited, told Al Arabiya English.
A lot of people from within the GCC also drove the high demand.
“You are in the Middle East, so you have a lot of rich people,” Comerford added. “Dubai is a crossroads to the world. You have a lot of people from within the GCC.”
Over the last five years, CHI Sol Investments Limited property development firm has moved from developing properties between five million to ten million AED ($1.36 million to $2.72 million properties) to villas valued at more than 20 million AED ($5.45 million) after noticing a gap in the market.
“We decided to take a punt and move into that market and that’s proved successful for us, it’s a market in short supply,” Comerford told Al Arabiya English.
Projects that Comerford has worked on include the Hillside development at Jumeriah Gulf Estate in Dubai.
UAE property website Property Finder currently lists just under 89,000 homes for sale on its website, with just under 3,000 of those priced at more than 25 million AED ($6.81 million) – the closest listing to property prices at 20 million AED ($5.45 million).
Property website Dubizzle lists some 2,230 properties for sale at 20 million AED ($5.45 million) or more, out of total of just under 66,000 properties for sale on its website.
“We saw a market for it where there is not a lot of high-end [properties],” Comerford said.
As well as a greater demand for “high-end” properties, there is also a bigger need for so-called “turnkey” property – homes, apartments or villas where people can move in straight away, without having to furnish them.
“Then you’ve got property that’s ‘super turnkey,’ [equipped] down to the robes and toilet paper, where people can literally move into the property with their bags on that day,” he added.
In a sign that the UAE’s property market is thriving real estate could increase in value in 2023, Robert Miles, a research analyst at the Dubai Investment Fund (DIF) global research departments in London told Al Arabiya English, with many investors looking to put their money in the real estate market.
Research from the DIF showed that to combat inflation – seen through the global cost of living crisis – 35 percent of investors in the UAE are interested in property.