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Dubai is well-known for its modern luxurious communities, high-rises and massive homes like Dubai Marina, Downtown Dubai, Emirates Hills, Palm Jumeirah, Jumeirah Golf Estates and others. In fact, the recent past is inundated with such luxury developments, and the trend continues to this day.
High-end premium properties have always been an attraction, and Dubai is a favorite destination for it. The penthouses in Dubai Marina, fountain view apartments in Burj Khalifa and Armani Residences, and the villas in Emirates Hills are just a few examples of luxury homes in premier locations.
The relevance of luxury homes remains intact in any market. Generally, people buy luxury properties as their second or third home. They may be purchased through their cash reserves rather than through bank loans. Probably, they are purchased for lifestyle rather than any realty market movement.
In addition, compared to other global destinations, Dubai provides a better deal in luxury home prices than other key metropolises in the world like London, where the prices may be five times higher.
Another reason for the luxury residential market to do well is that most luxury homes have good views, garden spaces, stretches of beach and excellent amenities. Buyers or tenants get attracted to them either to make them their dream home or just for status symbol. Some expatriates and professionals residing in Dubai are among the lot that prefers staying in luxury homes.
Regardless of how alluring the luxury home market is, without any growth in the mid and low-income residential segment, it may be difficult for it to keep impetus.
Even if it is doing well, there will be a possibility of oversupply as the capital in the market may be available but domestic demand may just fulfill the new developments. Also, luxury properties are purchased or taken on rent by a few upper echelons.
• Luxury residential developments are forever an attraction for buyers, tenants
• Its relevance in the market remains intact regardless of its fluctuating demand
• Expatriates and professionals are among the people that vie for luxury homes
Source: Arva Shikari, Special to Properties
The writer is a freelancer