Очистить всё Search by map
Property type
No. of bedrooms
Area
Show offers

Dubai's luxury housing market offers the best return on investments

08.09.2019
Due to decrease in prices for Dubai premium housing over five years, buying real estate in this category today has become truly lucrative. Especially, at the background of prime property prices in other major global cities.

If you are planning to buy luxury residential property in Dubai, the best time to make the best deal is now. According to the Savill’s World Cities Prime Residential Index issued for the first half of 2019, Dubai luxury real estate prices have declined by 20 per cent over the last five years, primarily due to the large influx of new residential units and offers, making the emirate the third most affordable city in this rating.

According to Luxury Property, prices for premium villas on the man-made island of Palm Jumeirah have decreased by 17% — from AED28,655 (USD7,801) per square meter in 2014 to AED23,702 (USD 6,466) this year, while apartments prices on the island decreased at the same rate, from AED20,736 (USD 5,645) per square meter in 2014 to AED17,154 (USD4,670) per sq. m this year.

Speaking about locations, Emirates Hills and Dubai Marina experienced the biggest decrease in luxury property prices over the same period — from AED28,095 (USD7,649) per square meter in 2014 to AED20,154 (USD5,487) in the Emirates Hills, and from AED19,223 (USD5, 233) to AED13,774 (USD3,750) per square meter in Dubai Marina.

And both, when comparing Dubai with other global major cities, it’s noteworthy thatluxury home buyers over other world’s centres will also have to pay a high property tax, incur large maintenance costs and various types of fees, which create a negative capitalization rate for the purchased housing. In Dubai, the annual rental income, even for luxury real estate, is enough to cover all the costs for maintenance, utilities and leave the owners to reap solid net profit.

According to Luxhabitat’s data for the last quarter, Dubai prime housing market has grown by 3.24 per cent and reached AED10.6 billion in monetary terms. And as for sales, in the last quarter, the largest growth in transaction volume was observed in areas such as Arabian Ranches 1Jumeirah Golf Estates and Downtown Dubai — up to 45.5 per cent, 42.14 per cent and 40.49 per cent, respectively.

“Although we expect the Dubai’s real estate market to experience a further moderate decline before the end of 2019, we still await for the healthy demand for luxury housing,” said Michelle Liddiard, luxury real estate sales specialist at Luxhabitat.

To always stay up to date with the latest analytics data and real estate prices in Dubai, subscribe to our newsletter using the form below. And in order to sell, lease or buy/ rent housing or commercial properties in Dubai, contact IMEX Real Estate. Our contacts:

Tel. in Dubai, UAE: +971 (50) 2528188 (Whatsapp, Viber, Telegram)

Toll Free Dubai: 800-IMEX (800-4639)

IMEX REAL ESTATE BROKER LLC, UAE

Office 2502, Marina Plaza, Dubai Marina, Dubai, UAE

Email: pm@IMEXre.com

Subscribe to our news

Latest Availability
Latest property news
Send us an enquiry or request a call back
Your name *
Phone
E-mail *
Your message *
*- indicates required

SOGA1 SOGA2
Request a call back

SOGA1 SOGA2
Call management

SOGA1 SOGA2
Lease process (Rent out)

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

Expenses of the seller:

None

Additional services:

Property management

Lease process (Rent)

1 hour

Contract of the lessee and agency.

Up to 5 days

Real estate search.

Selection of optimal options.

Up to 2 days

Signing of the lease agreement

Expenses of the lessee:

-5% agency commission of the annual contract price

Additional services:

None

Purchase process

1 hour

Contract of the tenant and agency.

~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

1 Week

Registration of the contract of purchase / sale

Customer charges:

  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration

Additional services:

Property management

Sales Process

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

Expenses of the seller:

None

Additional services:

None

the management process

1 hour

Contract of the owner and agency

1 year

Rendering of management services

1 day

Reporting

Expenses of the owner:

5% of the annual rental price

Additional services:

None

Investment Process

1 hour

Contract of the tenant and agency.

From 3 days

Selection of optimal investment options

1 Week

Registration of the contract of purchase / sale

Expenses of the investor:

  • 2% when investing in the secondary market
  • 0% when investing in a new building
  • 4% - registration

Additional services:

Property management