Dubai: Ultra-luxury property market heavily undersupplied as supply is absorbed, says expert

Dubai: Ultra-luxury property market heavily undersupplied as supply is absorbed, says expert

The emirate is a magnet for high net-worth individuals for several reasons, including safety, security, and low taxes

Published: Mon 13 Mar 2023, 9:38 AM

Dubai’s ultra-luxury property market is heavily undersupplied, as most of the supply is absorbed at an unprecedented level, with affluent buyers flocking to the emirate to cash in on the attractive deals for high-end properties.

As a result of short supply, industry executives suggest that there will be a smaller number of transactions for ultra-high properties in 2023.

“This market is the most in-demand and the most undersupplied. Since the onset of Covid-19, this market has thrived and most of the market supply was absorbed by end users in this category. Inevitably, this could lead to lower transactions in the secondary market in 2023, as most of those who bought in the past three years have settled in, and have no intention of reselling, even though prices have soared,” said Abdullah Alajaji, CEO and founder, Driven Properties.

Dubai is a magnet for ultra-high net-worth individuals for many reasons including safety, security, and low taxes. Moreover, savvy investors are attracted to the quality of finishing and materials that Dubai luxury developments have as they use the top brands for design elements.

In