Increasing signs for development in Dubai’s luxury market and residential real estate are appearing, according to reports from real estate agents about sales and enquiries for luxury properties. The managing associate for Dubai Luxury Homes, Jackie Johns said the luxury market in Dubai is definitely better.
The residential real estate in Dubai, including the luxury market has declined along other markets for the past two years because of the global economic recession.
Renewed luxury market activities are recorded in the recent months for luxury properties worth above Dh15 million or $4 million, according to the head of residential assessment for Colliers International in Dubai, Catherine Clarke.
But, according to Clarke, about 15 to 20 percent of sales in the luxury market were selling below asking price. Still, the market is doing well for now and in terms of deals point of view.
Investors and buyers for apartments are getting livelier but luxury villas are attracting more attention, according to real estate industry executives. A report from REIDIN.com, apartment prices in Dubai during the third quarter on 2010 were down by 7.48 percent compared to the same period in 2009, while prices for luxury villas increased by 0.9 percent.
According to REIDIN.com chief executive, Ahmet Kayhan, currently, there is been a strong demand for luxury villas. Luxury buyers are also looking deals, according to real estate agents, but several luxury developments have cut down by about 60 percent during the past two years.
Most agents in the luxury market also said that buyers plan to reside in thier luxury properties, even for a short time.