Significant Sale in Dubai: Canal-facing residential building of modern design in Business Bay fetches in excess of US$100,000,000
Strict confidentiality clauses preclude divulging any more information about the building or the transaction Sale underscores strength of Dubai’s real estate market, with an average boost of 65 percent in sales transaction volume between 2020 and this ye
London, U.K. (February 3, 2022) — Confidence in Dubai’s luxury real estate market this past year has been historic. Property sales surged in Q4 of 2021, surpassing the previous quarter. With 15,926 deals worth Dh42.35 billion, it has become the best ever third quarter vis-à-vis transaction value in the history of the Dubai property market.
Factors fueling the demand are three recent major governmental factors, openly welcoming high-net-worth individuals from around the globe: favorable tax laws, easing of visa restrictions allowing expats to buy real estate and the country’s decisive and successful handling of COVID-19. Add to this Dubai’s highly anticipated hosting of the rescheduled Expo 2020, which runs through March, and little wonder the emirate was designated one of the world’s greatest places for 2021 by Time magazine.
In this context, the US$100,000,000 transaction closed. Jacqueline Johns and Dinesh Chhatwani, principals at Dubai Premier Estates, along with Abdul Kader Kara, director of sales, managed the deal. Dubai Premier Estates is the exclusive Affiliate of Christie’s International Real Estate. Further details cannot be disclosed.
Dubai boasts a temperate climate and waterfront; cultural and art institutions; five-star dining, shopping and hotels; not to mention fully-serviced luxury high-rises and villa communities. It is one of the world’s leading multicultural cities, with expatriates from almost 200 countries comprising approximately 85% of its population. It has long been the primary business and tourism hub for the Middle Eastern region, now discovered by millionaires and billionaires from around the world. In the past 24 months, the influx has been primarily from the U.K., France, Germany along with renewed demand from Russia.
Here is a synopsis of government incentives and actions, not to mention Expo 2020, which continue to drive interest in Dubai real estate:
- Taxes: The UAE does not charge tax on capital gains, inheritance or rental income.
- Foreign ownership: Expats and foreigners may buy and sell, as well as rent or lease, property in designated areas of Dubai. Rental yields and capital appreciation potential are among the highest of comparable cities, the rental system is clear and efficient.
- COVID response: The UAE’s quick and effective handling of COVID-19 caught the attention of the world. The country was one of the first to issue a country-wide lockdown with stringent restrictions, state-of-the-art testing facilities, and prompt action. Health and safety and strategic organization prioritized health and safety and enabled an earlier return to “near-normal,” after which vaccinations became widely accessible.
- Visas: Visas now allow foreigners to live between their home country and Dubai and take advantage of state-of-the-art health care, proven pandemic regulations and quality of life. The government has also eased restrictions to now allow cohabitation. Foreign nationals also no longer need local sponsorship to establish businesses. Virtual working visas and investor visas — granted by either investing a minimum of 10 million Dh in the public sector or 5 million Dh in a property, then allows you to reside and come and go as you please for the duration of the visa — can also be obtained.
- Expo 2020: In 2020, Dubai became the first Middle Eastern country to host the International Expo or World’s Fair. The pandemic delayed the opening for a year but the fair, which kicked off in late October and runs through March, attracted 411,768 visitors in the first 10 days and it is expected to welcome up to 25 million visitors from different countries throughout its six-month run. The event —celebrating technology, innovation and ingenuity from around the world — will further shine the limelight on Dubai.
About Christie’s International Real Estate
Christie’s International Real Estate has successfully marketed high-value real estate around the world for more than 30 years. Through its New York City brokerage and invitation-only Affiliate network spanning 48 countries and territories, Christie’s International Real Estate offers incomparable services to a global clientele at the luxury end of the residential property market. The company has offices in London, New York City, Hong Kong, Los Angeles, and Palm Beach, and its affiliated brokerages have recorded approximately US$500 billion of real estate transactions over the last five years. (Data as of September 30, 2021.) For additional information, please visit christiesrealestate.com.