KHALEEJ TIMES, Saturday, Jan 22, 2022 | Jamada Al-Aakhirah 18, 1443
Dubai’s luxury realty sector set for a boom
Emirates: Dubai’s real estate sector, which witnessed a strong
market performance that led to more than 40 per cent jump in luxury property
prices in 2021 despite the pandemic challenges, is poised to thrive in 2022 on
the back of rising demand from affluent buyers from across the globe, leading
luxury property developer PNC Menon said.
Dubai has been able to better position itself as the destination of choice for
high networth buyers and business investors. Attractive visit and residency visa
reforms, 100 per cent business ownership rules, and a successful vaccination
drive are among a host of innovative initiatives taken by the government to woo
global investors,” the chairman and founder of Sobha Group said.
The positive impact of Expo 2020 Dubai, which has recorded more than 8.9 million
visitors since its launch in October 2021, has also provided the right impetus
for the buoyancy, Menon told Khaleej
Times in an interview.
“Dubai is a great place to do business and one of its most attractive advantages
is the diversity of prime properties available for purchase. From lavish villas
and fully-serviced apartments to premium penthouses – Dubai’s luxury properties’
portfolio is quite unrivalled. I have always maintained that there is no place
in the world better to visit, live, work and invest than Dubai and now we see
that the world's wealthy have their eyes firmly set on Dubai,” he said.
On the availability of ready-to-occupy luxury properties, he said the demand for
luxury villas and units witnessed significant growth and high sales rates during
2021. “As one of the leading real estate developers in the UAE, Sobha realty is
committed to launching iconic projects that meet the increasing demand while
embodying the vision of Dubai as a global destination and a hub for luxury
housing.”
Sounding upbeat about the outlook for the luxury segment, Menon said with the
economy showing clear signs of rebound aided by a successful vaccination
programme and the gradual opening of international borders, the real estate
sector is positive about the market sentiment and expects it to pick up.
The Dubai Land Department annual report that the emirate’s realty sector marked
a milestone in 2021 with real estate transactions rising to 84,772 and hitting
Dh300 billion in value -- a growth of 65 per cent in terms of transactions, and
71 per cent in value compared to the previous year.
Menon said Dubai has reinforced its status as a destination that millions wish
to live and work in thanks to the remarkable manner the UAE managed to overcome
the pandemic challenges. Dubai could project itself as the safest place in the
world to spend holidays amid the spread of the pandemic. The UAE was among the
first few nations that reopened doors to tourists from all over the world.
On the impact of escalating construction costs on the real estate sector, the
seasoned builder who has established strong brand equity for luxury developments
in Oman and India, said local developers are adapting to the changing scenario
although the sector has been challenged by supply chain disruptions due to the
pandemic.
“At Sobha Realty, we adopt a unique backward integration model that enables it
to have complete control over its supply chain and deliver international quality
products on time with transparency. We employ in-house resources to develop
projects from ideation and conception to construction and handover,” said Menon.
Menon said he was very optimistic about 2022 following a year of expansion. “On
the back of the UAE’s strong economic recovery and based on the encouraging
response from investors, Sobha Realty has achieved its revised sales target of
over $1 billion for 2021. We have consistently expanded our offerings at our
iconic Sobha Hartland development – the luxurious freehold community in Dubai's
Mohammed Bin Rashid Al Maktoum City. We are bullish about 2022 with many plans
and projects already underway.”
He said Sobha Realty has acquired 11 million square feet of land for new
developments. “We are also making our mark on Sheikh Zayed Road with the S Tower
launch later this year. With these iconic developments and future-ready
communities in the most sought-after locations in Dubai, we continue our
impressive journey of creating world-class residential projects that ensure
unmatched living experiences.”