“The luxury segment has never been stronger, over 10,000 multi-millionaires moved to Dubai last year and I would expect similar levels of migrations this year,” said Conor McKay, a luxury property agent at Belleview Real Estate.
But not just any old property agent as 25-year-old expat Conor recently sold Dubai’s most expensive property – a 10-bedroom custom-built villa on Palm Jumeirah for AED280 million ($76.2 million).
To put this in context, the highest value property in London is currently on the market for around $40 million, $169 million in New York and $82 million in Hong Kong.
“These high-net-worth individuals need homes and so the demand is at an all-time high. For the seller, this demand presents opportunities to sell their properties for fantastic returns, particularly if they have owned them for a long time,” he added.
Property prices in Dubai have rebounded strongly and last month saw the second highest April on record in terms of the number of transactions.
A total of 2,043 real estate transactions worth AED7.2 billion were conducted during the week ending 20 May, according to the latest figures released by the Dubai Land Department, as the market gains momentum.
Conor’s record-breaking deal was followed up this month by the sale of an AED102.8 million villa in the prestigious Emirates Hills development – the second highest ever sale value there – by Pheonix Homes.
But how long can the market keep rising? “I don’t have a crystal ball but values in general are only 80 percent of the previous peak in 2014.
“Where Dubai is now compared to then is night and day, we have never been in a stronger position. The city is truly on the map globally, not just for tourism but for commerce,” added Conor.
Property prices have also been buoyed by the government establishing itself as best-in-class and prioritising economic growth.
“Considering how strong we are now and how under-valued we are comparatively with the rest of the world, it wouldn’t surprise me for prices to surpass the previous peak and keep rising steadily for a number of years.”
Talking about the type of properties that are in demand currently, Conor said data points to luxury real estate of AED10 million and over, and lower-ticket investment properties as investors look to capitalise on increasing rents and high net yields.
Within the luxury segment, the usual suspects such as Palm Jumeirah and Emirates Hills remain incredibly popular. Whereas for investment properties, anything offering a good location preferably with a water view will command an impressive rent in this market.
“From a supply point of view, when it comes to prime real estate, that is real estate that people actually want to buy, there is an definitely an under-supply. The government has said there will be no more land reclamation projects so, we’re seeing some of the last beach facing plots be sold.”
Many people think selling property is easy, but Conor is quick to disagree.
“The reality is you’re dealing with the most expensive asset an individual owns. It isn’t about how great the view is, it’s about how great the view is compared to a hundred other properties that you need to know inside out, how the value will appreciate or depreciate over time, and then negotiating with highly successful individuals trying to find a win-win scenario.”
And what did he spend his commission on after making that record sale? “The first thing I bought was a Nandos believe it or not. I had been so busy ensuring everything went smoothly that I had barely eaten in about 24 hours. Other than that, I’ve just invested it.”
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