The beginning of 2022 marked a new phase for the real estate sector in Dubai, with a major swing from market oversupply to big demand for luxury properties continuing to bring market repercussions. As a result, the market will now witness the launch of several new luxury real estate projects this year, according to Dubai-based real estate brokerage Union Square House (USH).

 

At the height of Covid-19 and for the longest time, every luxury residential unit worth more than $1 million was a burden on the real estate market in Dubai. Premium properties were barely selling as Dubai turned into a predominately buyer’s market in the wake of the pandemic, it stated.

 

According to USH, most investors adopted a buy-to-let model, purchasing small-scale, low-ticket units in bulk to achieve a higher return on investment. Tourism was primarily driven by low-income people who were more likely to opt for smaller, affordable units, it said.

 

"With the pandemic coming to an end, all that is changing. More and more people, especially millionaires, are moving to Dubai with their families and investing in holiday homes and permanent residences," remarked its Founder and Managing Director Gaurav Aidasani.

 

"The influx of millionaires that Dubai is witnessing has been boosting the luxury property market. Investors today still seek high returns on their investments. However, the main reason behind their investments now is to own a super-prime home in Dubai. This has created a market shift in the luxury property category, turning the tables and causing investor demand to outstrip market supply," he noted.

 

From 2021 to date, luxury residences by all major developers in Dubai have been fully sold out, and now trading at a premium on the secondary market, he added.

 

Aidasani said last year, USH had recorded AED3 billion in real estate transactions and also successfully expanded its customer-base from six to 30 nationalities. 

 

"Our brokerage focused on new markets, capitalizing on demand for luxury homes from European, American and Canadian customers," he added.-TradeArabia News Service