Demand for Luxury Homes and Golden Visas Sets Dubai Property Market for Best Q1 Sales in a Decade

Demand for Luxury Homes and Golden Visas Sets Dubai Property Market for Best Q1 Sales in a Decade

The Dubai property market is experiencing a surge in off-plan sales, with developers offering attractive deals such as low down payments ranging from 1% to 10%, and even as low as AED 50,000, along with full waivers of registration and other fees. This trend is driven by the demand for luxury homes and the Golden Visa program, which requires a minimum investment of AED 2 million in Dubai properties, making it easier for first-time overseas investors to acquire homes in Dubai.

According to recent data from DXBInteract.com, nearly 31,000 homes were sold in Dubai from January to March, representing a 50% increase compared to Q1-2022 and the best performance in the Dubai residential sales market in a decade. Luxury home demand and the Golden Visa program are cited as the two main drivers behind this growth, with developers like fam Properties reporting significant sales from high-end projects such as the seven Bulgari branded homes, which generated AED 690 million in the first quarter of 2023.

Developers in Dubai remain optimistic about the market outlook, with many launching new off-plan projects due to the confirmed sales backlog of leading developers such as Emaar, Damac, Sobha Realty in Dubai, Aldar in Abu Dhabi, and Arada in Sharjah. The upcoming projects from Aldar and Nakheel are also expected to further escalate the competition for off-plan sales in the Dubai property market.

To attract buyers, developers are offering incentives such as lower down payment requirements, sometimes as low as 5% or even 1% of the property value, to ease the burden on initial payments. This approach is aimed at making property purchases more accessible for first-time investors and end-users, particularly in the face of challenges such as higher mortgage rates and inflation expenses.

As the sales boom continues into the second quarter, with early April numbers from the Dubai Land Department indicating a bullish trend, developers in Dubai are likely to continue offering attractive deals to keep the momentum going and sustain the robust performance of the property market.

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