Why prospects for Dubai’s luxury property market remain high for 2021

Why prospects for Dubai’s luxury property market remain high for 2021

Nearly a third of Middle East-based ultra-high-net-worth individuals (UHNWIs) are planning to buy a new home in 2021, according to Knight Frank.

Such demand from Middle Eastern UHNWIs, those worth $30 million or more, stretches across the world, with the UK, US, Turkey, Spain and the UAE being the top five locations where such purchases are planned, its Wealth Report 2021 showed.

In the GCC region, weaker economic conditions and historic supply gluts in parts have underpinned prices falls in Doha (-6 percent), Dubai (-5.9 percent) and Riyadh (-3.3 percent) while Abu Dhabi's prime market saw prices remain stable over this period.

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Taimur Khan, head of research at Knight Frank Middle East, said: “Despite prime prices softening in almost all key markets, demand for prime residential property has remained robust throughout 2020. There are also early indications that we are seeing these markets begin to enter new market cycles.

"For example, while Dubai's prime residential market saw prices decrease by 5.9 percent in the year to November 2020, we are beginning to see signs of a recovery in price performance in some prime sub-markets."

He added that in the six months to December, apartment and villa prices on the Palm Jumeirah increased by 5.1 percent