Although in terms of percentage, the luxury segment is extremely small and negligible considering the entire real estate market in Dubai, it definitely has a substantial impact on the overall trends. The sales transactions of luxury purchases in Dubai consistently fall and rise; depending on the market demand and supply, seasons of the year and overall economic cycle around the globe.
To better understand the luxury segment and overall real estate in Dubai, we tried to dig deeper into the factors that affect the increasing and decreasing trends in the market. Here are some of the most influential factors that can break or make the housing sector in Dubai.
The Location of Property
According to Luxuryproperty.com, The primary factor affecting the entire real estate market including the luxury market is located. The land is one of the critical factors which determine the pricing of the overall housing scheme. It is considerably hard to find reasonable and spacious land in Dubai, which can make the location the most in demand and an exceptionally substantial factor when deciding to choose a real estate property. The best part of the city which is between Burj Al Arab and Satwa is constantly at the peak of demand.
The transformation of the world into a global village has tremendously affected every industry. However, the impact on real estate has been significantly higher than in other sectors. Now the buyer is not only well educated and informed but also compares the property in Dubai with other global cities. The real estate market in Dubai has reached its maturity; due to its central location between East and West, high quality of lifestyle and access to technological advancement. Although it has increased the demand for property in the city, it has also substantially increased competition and now the buyer has a wide range of options to compare the city to London, Singapore, and Malaysia.
Dynamics of Luxury Market
The dynamics of a luxury market have completely changed since last decade. There was a time when luxury property used to be sold by celebrities endorsement and promoting different lifestyles. However, now they are completely perceived in a different light by the new audiences and market. The buyers are more aware now and expect to find not only the luxury but also convenience and value for their price. A real estate villa cannot be only sold under the luxurious brand now if it does not have anything substantial to offer to the buyer.
With the options available for customization, it is becoming easier than ever to design your own places to live. With ready-to-move-in living spaces, the buyers get the complete freedom to decorate and make their own houses which can provide immense satisfaction to the buyer. The final touches including furnishing, flooring, and windows are all done by the customers that make the luxury market a less desirable solution. The buyers do not want permanent and long-term property but something that they can design and maintain on their own with the ease of buying and selling the property.
Market Trends in Villas
The trend of buying villas has also significantly dropped in Dubai. The buyer is not only attracted to the idea of owning a villa but wants to explore more quick, independent and cheaper options available to them. It is one of the reasons that the luxury real estate market is constantly under a paradigm shift.
These are some of the strongest reasons that affect the luxury and overall real estate market in Dubai. With fluctuation in demand and supply, housing prices, buyer trends, and knowledge, the real estate market in Dubai constantly goes through a series of ups and down all over the year. It is most prudent to invest at the right time to get the best deal out of reasonable amount. It is also very important to keep global competitions in mind while investing, building or purchasing any new real estate project.