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According to a study published by an elite real estate consulting company, in 2022, 30% of all transactions with Dubai’s housing stock for more than AED 20 million ($5.5 million) were made in the Palm Jumeirah.
The artificial archipelago is the most favoured area for ultra-high-income investors in Dubai’s luxury property market.
Content:
- The advantages of the Palm Jumeirah
- The demand for real estate in the Palm Jumeirah in Dubai
- The reasons for investing in Palm Jumeirah real estate
The advantages of the Palm Jumeirah
Real estate agencies in Dubai consider real estate in the Palm Jumeirah as a unique opportunity to join a luxurious lifestyle. In fact, the island's housing stock can meet the housing needs of different budgets and goals, including investment-attractive real estate.
The archipelago was built of materials from the seabed. Its main goal was to expand the coastline to increase the number of tourists. The construction of the artificial archipelago began in 2001, and the first apartments were sold in 2006. In addition to a wide range of properties, the Palm Jumeirah attracts foreign investors with such amenities as:
- A close location to the central districts of the Emirate;
- Many tourist attractions;
- A wide range of entertainment services.
The demand for real estate in the Palm Jumeirah in Dubai
The island is home to several gated residential complexes with apartments of various sizes for sale in Dubai. High-end penthouses are located on the upper floors of skyscrapers. On the other floors, you can buy studios and 1-4-bedroom apartments.
The demand for luxury real estate in the Emirate is high. The political and economic situation in Western markets, Russia and Asia remains uncertain. This forces wealthy people to seek safe havens where they can protect and multiply their accumulated investments.
In 2022, the most expensive villa in the Palm Jumeirah was sold for AED 600 million ($163.35 million), and another villa in the "billionaires' area" on the same island was sold for AED 302.5 million ($82.36 million). The largest transaction last year was an apartment in Bulgari Residences for AED 80.35 million ($21.88 million).
The reasons for investing in Palm Jumeirah real estate
What is the reason for investing in the luxury real estate market in the Palm Jumeirah in Dubai?
- High-liquid housing. Demand continues to grow, while land plots for development are declining. This increases the cost of housing, making purchasing a property in the Palm Jumeirah more profitable for resale.
- An annual real estate valuation. A rise in the price of real estate can significantly increase profits when it is resold.
- High yield of 5.5% from renting out an apartment in Dubai. There is no personal income tax in the UAE.
- Obtaining a resident visa when buying a property. Its validity period depends on the cost of housing.
For those who prefer high living standards, there is no better market than Dubai’s real estate sector. Over 75% of buyers consider this Emirate a safe and stable place for permanent residence. In 2022, 4,000 millionaires moved to live in the UAE, and this statistic will grow.
