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After Covid-19 great negotiations for luxury property
After the lockdown of the last months caused by Covid-19 rich people want luxury property. There are great negotiations for big houses and villas.
Like brokers said, the luxury sales and rental market in Dubai is the mainstream of property market from ever. Who feel that the pandemic has made high-net-worth individuals put a new emphasis on buying comfortable homes. In the luxury segment if you have the available cash reserves, you can benefit from those that need to liquidate and capitalise.
“We are witnessing a huge shift in the market with a big uptick in activity in villa communities. There has been particularly high demand in areas like the Palm Jumeirah, which offers a perfect beach retreat, Al Barari, which affords residents large built-up areas and plenty of greenery, and Jumeirah Golf Estates, which is perhaps the premier family community in Dubai,” says Andrew Cummings, co-founder and managing director of Luxuryproperty.com. “Even those who have had been on the fence previously, they now know the importance of living in the right property. Our client enquiries in June have doubled those in February and March”.
For the seasoned investors who have invested in several properties in the emirate, it’s the right time to buy a property big enough to live with their family. Now the prices are attractive and it’s possible to do good deal, buying the property available in the right location.
The typical profile of the luxury buyer has changed, says Cummings. “Given the closure of air travel, the clients are now predominantly Dubai residents looking to either upgrade their homes, or change their living style from apartments to villas. The international clients are still there though and are building a strong pipeline for once air travel restarts,” he says.
Lewis Allsopp, CEO of Allsopp & Allsopp, explains that at the luxury level, people are affected less in times of uncertainty such as the current pandemic, and instead see it as an opportunity to buy and invest, rather than sit on the sidelines.
Lewis Allsopp explains that at the luxury level, buyers are affected less in times of uncertainty such as the current pandemic.
The price stability in the luxury sector is driven by a lack of stock, Cummings says. “In prime areas such as Emirates Hills, Palm Jumeirah and Al Barari, there simply is not the quality and numbers of stock to meet demand, putting a premium on quality turnkey products.”
Allsopp says leads have also increased in the last three months: just under 60 per cent for villas in Jumeirah Golf Estates, 26 per cent for Garden Homes on Palm Jumeirah, 147 per cent for the Canal Cove villas and 41 per cent for Al Barari.
Client enquiries in June have doubled compared with the previous months, says Andrew Cummings.
In Emirates Hills, while the average asking price dropped by 3.7 per cent, the percentage of asking price achieved is at the same level as at the end of 2019 and the start of 2020. So while the market has dropped roughly 3.7 per cent, it may not be as bad as many people think, says Allsopp.
“Most of our buyers that purchase luxury are end users buying their family home. They are mostly looking to stay in Dubai long term and are purchasing their dream home and not looking to get an immediate return on the property”.
The high activity levels in Dubai are being mirrored around the world. In the UK housing prices have rebounded with sales increasing by 137 per cent post lockdown. In Los Angeles, Cummings says one of his firm’s partners reported unprecedented demand. So it is safe to say that now is the time to buy.