Demand for Luxury Residences in Dubai in 2022 Reaches a Different Peak as Epidemic Declines

Dubai is presently seeing a strong desire for luxury residential apartments among investors and homeowners.

From 2021 until the present, all major developers in Dubai have sold out of luxury properties, which are currently selling at a premium on the secondary market.

At the height of the epidemic, and for the longest period of time, every luxury residential property worth more than a million US dollars weighed heavily on Dubai's real estate market. Luxury houses were rarely selling when Dubai shifted to a buyer's market in the aftermath of covid-19.

The majority of investors used a buy-to-let strategy, mass acquiring small-scale, low-ticket units in order to maximise their return on investment. Tourism was mostly driven by low-income individuals who preferred smaller, more economical accommodations.

All of this is changing as the epidemic draws to a close. 

Every year, an increasing number of individuals, particularly wealthy, relocate to Dubai with their families and invest in vacation houses and permanent dwellings. 

According to New World Wealth, Dubai's high-net-worth people (HNWIs) population increased to 54,000 in June 2021 from 52,000 in December 2020, a 3.8 percent increase as a number of Dubai billionaires pumped up the luxury property market in Dubai.

Today's investors continue to seek high rates of return on their investments. However, their primary motivation for investing today is to acquire a super-prime residence in Dubai. This has resulted in a market shift in the luxury property segment, with investor demand exceeding market supply.

Luxury real estate in Dubai was floundering during the height of the epidemic, based on sector-wide sales performance. Over the last several years, only a few few developers have introduced high-end units. The lethargic market conditions prevalent throughout the pandemic period resulted in a scarcity of premium real estate in Dubai.

The start of 2022 began a new era for Dubai's real estate industry, with the market's dramatic shift from oversupply to strong demand for luxury residences continuing to have market ramifications. As a consequence, numerous new luxury real estate projects will be launched in Dubai this year.