Dubai Luxury Home Transactions Revive

[Asia Economy Reporter Yujin Cho] The real estate market in Dubai, the economic city of the United Arab Emirates (UAE), is emerging from a long slump due to a surge in luxury home purchases, Bloomberg reported on the 29th (local time).

According to the report, the number of luxury home transactions exceeding $10 million (approximately 1.13 billion KRW) this year has reached 22, already surpassing last year's total of 19 transactions. This is also the highest number since 2015, when 31 transactions were recorded.

On Dubai's artificial island Palm Jumeirah, an ultra-luxury home sold for $770 million, setting the highest home transaction amount so far this year.

The sharp increase in interest in Dubai real estate, centered on luxury homes, reflects the economic reopening trend following COVID-19. The influx of tourists, which began as vaccination accelerated, and the movements of global asset owners preparing for the post-COVID-19 era are interpreted as the main factors behind this trend.

Dubai is one of the regions exempt from quarantine requirements, along with Hawaii, the Maldives, and Saipan in the United States. The UAE, with a population of about 9 million, has over 73% of its residents having received at least one vaccine dose, ranking it among the highest in the world in terms of vaccination rate per capita.

At the same time, the expectation that residential real estate is much cheaper than in London, New York, and Singapore, and thus can yield higher returns, has also influenced the buying frenzy.

UK-based real estate consulting firm Knight Frank stated, "Investors purchasing ultra-luxury properties in Dubai are increasing," and predicted, "This popularity is expected to continue for some time."

However, the report noted that unlike the preference for high-end properties, demand for general real estate is still not large. This is attributed to the local economy, which was hit by the COVID-19 crisis, not yet entering a full recovery phase.

This content was produced with the assistance of AI translation services.