A guide to luxury real estate in Dubai
Luxury real estate is extremely sought after by wealthy international investors, as it is seen as a recession-proof venture with this type of property not being sensitive to economic fluctuations due to the type of tenants it attracts - those with a lot of money and a taste for grandeur.
This type of property in Dubai is extremely popular due to the quality of the real estate and the opulent lifestyle offered to investors and residents alike. As well as being an international hub for business, the emirate is the land of superlatives, home to super cars, glitzy nightlife and the world’s first seven-star property, meaning it is very attractive to those that can splash the cash.
Here is a guide to why luxury real estate in Dubai should be your next investment.
The emirate holds a unique position compared to other destinations across the globe, as it is a leading travel, leisure, business and shopping hub that attracts all types of tourists and expats. Dubai is an enticing prospect for those looking for a sunshine-rich holiday, to attend an exhibition or conference and for people who want to experience the indulgent lifestyle on offer to the wealthy.
Dubai's tax-free status is also a big pulling point for affluent investors and people looking to relocate to a different country, as it allows them to maximise how much money they can make from their investments.
Top global city
Dubai, along with London and Singapore, makes up the top three global cities that are most appealing to high-net-worth individuals (HNWIs), according to a report from Middle East real estate consultant Cluttons.
Furthermore, the research also noted that the cosmopolitan lifestyle will be one of the main factors that influence the choice of real estate investment destinations for Middle East buyers in 2015, which the emirate has in spades.
A separate study from Knight Frank's - the annual Wealth Report - historically places Dubai high in the rankings for the regions that prove to be popular among HMWIs, coming eighth in 2015.
Well-priced and positioned luxury real estate in Dubai is becoming an increasingly popular investment asset for international buyers, with a shift in demand evident as more end-client users look for this type of property for their own use.
According to Knight Frank, between January and February 2014, there were 13,858 transactions carried out involving luxury property, with 181 sales in the prime and super-prime markets that had a value of AED10 million (£1.83 million) or more.
International investors continue to show a lot of interest in Dubai's luxury real estate, with figures from the Dubai Land Department revealing that this sector experienced the second-highest increase in rental value gains during the course of last year.
In the 12 months ending in December 2014, rentals were up by an average of 8.1 per cent, according to Knight Frank, who also noted that luxury property in the emirate is resistant to any downward pressure the rest of the market might be feeling.
Gregory Lewis, head of Dubai Prime Residential Sales at Knight Frank Dubai, said that HNWIs are willing to pay a premium to get the space and views they want. He explained: "Clearly, location, size, specification and amenities will influence just how much you pay for your pad in the sky and some are considerably higher in price.
"But if your dreams involve a home at the top of the world, it will be a price worth paying for.”