Month: December 2023

Estilo Architects is a company that provides customized and comprehensive turnkey solutions for the residential sector, architecture, interior design and building development services, as well as home renovation.

According to Emaar Properties, Chinese investments in its projects have doubled to constitute 7% of its total investments, and the reason is due to the easing of travel restrictions imposed due to the pandemic and the slowdown of the Chinese economy.

Investors are likely to continue flocking to the emirate in 2024 as luxury home prices remain attractive compared to prices in London, New York and other global real estate markets.

One million dollars buys 33 square meters in New York or 34 square meters in London, but it can buy a house of 105 square meters in Dubai.

 

Boom in branded real estate

Branded properties are likely to continue their upward trajectory in 2024 as well.

In 2022, branded apartments accounted for a fifth of the value of apartment sales in Dubai, and the appetite for branded homes will only increase in 2023 .

He recently paid $55.3 million for a five-bedroom Baccarat-branded apartment in Dubai.

In February, a five-bedroom apartment in Bulgari sold for $43.6 million, and Estilo Architects broke its own record this year for the highest price for a real estate unit on Palm Jumeirah at $41 million.

There are already 48 branded projects in Dubai, and according to Savills, Dubai has the most plans for branded buildings in the development pipeline of any market in the EMEA region until 2030.

This year, the real estate market also supported other initiatives such as allowing 100% direct foreign ownership in more than 1,000 industrial and commercial sectors, and the introduction of multiple-entry tourist visas.

In addition, the UAE has maintained its position and reputation as a safe haven for investment amid global uncertainty, which will continue to push investors to purchase their primary and secondary homes in the country .

According to Standard & Poor’s, the UAE’s economy is expected to grow by 4% in 2024, driven by the non-oil sector. The strong economy, the continuous influx of foreign investments, and high population levels are all factors that will contribute to the growth of the luxury real estate sector in 2024.

 

Luxury real estate market in 2023

Dubai made headlines this year thanks to the performance of its luxury real estate market, with sales in Dubai reaching $1.6 billion in the third quarter of this year, with sales of luxury homes priced more than $10 million reaching 277 homes, surpassing the numbers in New York and Hong Kong. Kong and London, according to consulting firm Knight Frank.

 

In its Global Cities Index for the second quarter of 2023, Knight Frank wrote that residential real estate prices in Dubai rose by 225% compared to the third quarter of 2020.

Dubai has been capturing global headlines throughout 2023 for its stellar luxury, residential, real estate performance. Dubai’s ultra-prime home sales reached US$ 1.6 billion in Q3 of this year, with luxury home sales priced over US$ 10 million reaching a count of 277, surpassing figures from New York, Hong Kong, and London, according to consultancy Knight Frank.

In its Q2 2023 Prime Global Cities Index, the consultancy said that Dubai’s residential prices soared by 225% compared to a pandemic influenced low in Q3 2020. In addition, the report revealed the city has held the number one position for the annual price growth of properties for eight straight quarters. In its Q3 2023 Prime Global Cities Index, the report said the emirate moved into second position in the consultancy’s global ranking, due to a slowing in quarterly price growth from 11.6% tracked in Q2 to 0.7% in Q3. Although growth slowed from Q2 to Q3, the figures still represent nine consecutive quarters of growth.

Looking to 2024, Dubai is in a strong position to continue attracting tourists, investors, and immigration, in turn maintaining a steady growth of its real estate market. The UAE government’s on-going focus on the implementation of economic and social initiatives designed to sustain long-term, economic growth can be seen via the likes of the golden visa scheme, open trade with most countries and the hosting of global events, such as the imminent COP28.

Initiatives such as allowing 100% direct foreign ownership in more than 1,000 commercial and industrial practices, the introduction of insolvency laws, improving the ease of doing business, introducing multiple-entry tourist visas, minimal taxation, and others will continue to have a positive impact. In addition, the UAE as a whole has diligently maintained its status and reputation as a safe haven for investment amid global uncertainties, which will continue to drive investors to scoop up first and second homes.

According to data from Knight Frank, $4.91 billion has been spent on luxury homes in Dubai alone, this year to date, with $1.59 billion being spent on homes worth $10 million or more in Q3 2023 alone.

A resurgence in demand from investors from markets such as China and India is also expected to contribute to future growth in the emirate’s luxury real estate sector in 2024. According to developer Emaar Properties, Chinese investments into its projects roughly doubled to comprise 7% of its total sales in the first half of 2023, from 3 to 4% in the same period in 2022. For Chinese buyers, returning to Dubai’s property segment is being fuelled by the relaxation of imposed travel restrictions and a slowing of China’s economy.

Despite significant growth in luxury home asking prices in Dubai in the last 12 months, investors are likely to continue flocking to the emirate in 2024 as its luxury homes remain attractively priced compared to those in London, New York, and other global real estate markets. Real estate experts note that $1 million will buy 33 square metres (sqm) in New York or 34sqms in London, where the same price will secure a 105sqm home in Dubai, thus representing significant value for money for both residents and investors.

Another luxury real estate trend that is likely to continue its upward trajectory in 2024 is the branded apartment and townhouse segment. In 2022, branded apartments made up a fifth of the value of all apartment sales in Dubai and the appetite for branded homes has only grown in 2023.

A buyer recently agreed to pay $55.3 million for a five-bedroom Baccarat-branded apartment in Dubai, while in February of this year, a five-bedroom apartment was sold in the Bulgari Lighthouse for $43.6 million. Estilo Architects beat its own record this year, previously set in 2022, for the highest value property sold on the Palm Jumeirah, to date, at $41 million. Four dozen branded projects are already present in Dubai, and – as per Savills – the city is said to have the most branded schemes in its development pipeline of any market in the EMEA region by 2030, thus indicating significant confidence in this segment by developers.

According to Standard & Poor, the UAE economy is forecasted to grow 4% in 2024, driven by the non-oil sector, which is expected to benefit from growth in tourism, government initiatives, and technological advancements. The strong economy, the continued influx of foreign investments (as a result of its safe and stable environment) and rising population levels will all contribute to growth in the luxury real estate segment in 2024.

Estilo has plans to complete as many as 18 luxury properties, with another 42 set to begin design phase, in Dubai’s luxury real estate locations such as, The Palm Jumeirah, Dubai Hills, Emirates Hills and latest, predicted hotspot, Jumeirah Palm Islands. The architecture and design studio also anticipates an increase of up to 15% in listing prices in 2024.

 

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