Real Estate Experts confirmed that there is room for more luxury projects in the Dubai real estate market. They note also that this will not affect other real estate categories targeting middle-income earners.
They told “Emarat Al Youm” that “demand” is the indicator developers rely on before launching real estate projects, as the market, like other markets, is subject to the law of supply and demand. Moreover, luxury real estate has its own market attracting high-net-worth investors.
Supply and Demand
The CEO of “Elio Real Estate Company”, Zahi Qashou, said: “The high demand for luxury real estate in Dubai has encouraged developers to continue launching projects characterized by uniqueness and distinction.
Qashou attributed the focus of a large number of real estate development companies on this category of real estate to the high demand and the gains achieved compared to other residential categories, stressing that “the market is capable of accommodating more luxury real estate projects, while not affecting other categories targeting low- and middle-income earners.”
For his part, the CEO of Malak Real Estate, Tariq Ramadan, said: “ Dubai real estate market, like other markets, is subject to the policy of supply and demand. During the past two years, there has been greater demand from global investors for luxury properties. As a result, real estate developers have turned to developing relatively large luxury projects, some of which carry global brands.”
Ramadan continued: “There are a large number of projects in middle-income areas, and most of the developers are from the second category or new developers in the market,” noting that the rise in prices in the market has made real estate projects in middle-income project areas expensive. Therefore they cannot be classified as projects for middle-income people.
Ramadan believed that the rise in real estate prices during the past two years has directed the market to target high-income individuals, noting that the market cycle will correct itself. Yet, indicators show that the Dubai real estate market is on a continuous rise, due to the high global demand.
Distinctive locations
In the same context, real estate marketing expert Alaa Masoud said that “the luxury projects of leading brands currently offered in the Dubai real estate market are attracting the wealthy and high-income individuals,”. Masoud added: “This won’t affect the real estate market for those with average income, given that the locations of luxury projects differ from those of “average” locations.
He stated further: “The wealthy are always looking for distinctive locations with a direct view of the beach, or on private islands, as they have their own orientation when owning real estate in these projects worldwide,” stressing that Dubai is one of the best cities in the world in terms of the type and quality of the real estate.
Private market
In addition, real estate expert Hussein Al Marsoumi said: “The diversity in luxury projects increases demand and enhances investment,”. He indicated that according to estimates and indicators in the real estate market, we may see an increase in prices by up to 7% during the current year.
Al Marsoumi believed that offering more luxury properties would not harm the rest of the real estate categories, as “demand” is the main determinant for launching projects that suit low- and middle-income individuals.
Mohammed Buharb, founder and director of Al Liwan Royal Real Estate Company, told Emarat Al Youm that luxury real estate projects are unlikely to affect medium housing projects, as luxury real estate has its own market with high-net-worth investors, and therefore, it does not affect medium real estate.
He added: “The Dubai market serves all segments, whether low, medium or high-income individuals, stressing that luxury real estate will not affect other categories such as those with medium income.”
Buhari continued: “Luxury real estate purchases are increasing, as Dubai has become a safe and preferred destination for investors, who are specialized in the luxury real estate market,”. He also noted that there is a 20% increase in luxury real estate prices, due to increased demand.
He said: “We see an influx of different types of investors who want to invest in the Dubai real estate market thanks to the existence of flexible laws, such as the Dubai’s tax-friendly system, that make golden and special residencies available to investors,” stressing how attractive the Dubai real estate market is.
