Real Estate | By: New Launch Properties on Date: 2022-11-24 07:30:50

High inflation has caused mortgage & other interest rates to rise in the west. Led by the US, interest rates have gradually increased over this year, causing the housing market to cool down in the US and other western markets. However, on the contrary, Dubai's real estate market is heated up, climbing newer heights month after month! 

Over this year, Dubai's prime real estate prices have risen to 89 percent, according to a report in Bloomberg. Per a report published by Knight Frank earlier this year, the supply is tight in popular neighborhoods such as Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island. In fact, only eight new homes are expected to be completed in these neighborhoods between 2023 and 2025, causing the prices to surge! According to Business Insider, 

A Palm Jumeirah villa was recently sold in July for AED 302.5 million, or $82.35 million, and is now the most expensive house ever to have sold in Dubai. 

“Prime residential values in Dubai continue to strengthen, growing by 29 percent in the third quarter alone, fueled by a persistent deluge of ultra-high net worth individuals who are zeroing in on Dubai's premier districts in search of second homes," said Faisal Durrani, head of Middle East research at Knight Frank, in an interview with Bloomberg. 

The key factors that have led to this bull market are as follows:

The UAE government's world-leading response to the pandemic, initiated the re-bound of Dubai's real estate market in late 2021. 

 The successful hosting of the Expo Dubai 2020 and the reopening of travel corridors further drove this upswing. 

Dubai's global safe-haven status and excellent quality of life continue to strengthen this market to newer heights. 

The most recent factor that has positively impacted Dubai's luxury real estate market is the Russia-Ukraine conflict. While many new buyers come from countries like Switzerland, Germany, and France—wealthy Russians have been flocking to Dubai to park their assets over the last few months. Unlike many Western nations that have sanctioned Russians for their country's invasion of Ukraine, the UAE hasn't imposed such measures. Dubai was already a destination for Russians, but now it's one of the few safe havens to prevent the seizure of assets.

Like the expo, FIFA World Cup in Qatar is attracting millions of high-value tourists to the region. As reported in Khaleej Times, during the next month, millions of people will transit through Dubai and Abu Dhabi; also, many will make the two emirates their destination to watch football's most significant event. Fascinated by Dubai's high quality of life, world-class safety, and attractive returns, many high-value visitors will consider buying homes in Dubai. Thereby further fueling the demand for quality neighborhoods in Dubai. 

While the rest of the world is looming under constant fear of an expected recession, the luxury real estate market is reaching new heights in Dubai and is not showing any signs of slowing down any soon!