Luxury Realty Refashions Strategy

AS DEMAND for the prime and ultra-prime market to continue to flourish, Dubai’s luxury real estate industry is refashioning its strategy by focusing on technological integration, immersive virtual experiences, and sustainable practices.

Smart houses, eco-friendly architecture, and wellness-focused amenities are becoming increasingly popular in response to the evolving needs and values of luxury property buyers, says PNC Menon, chairman of Sobha Realty.

“Dubai continues to attract investors and buyers on the back of strong demand driven by visa and a series of policy reforms, continuing economic buoyancy and pro-business measures while positioning itself as a tax haven and a global destination for the wealthy. Though investor sentiment may be influenced by global uncertainties, the outlook for the sector has never been brighter,” the real estate mogul said in an interview.

Another trend, according to him, is that the luxury real estate market will be progressively integrating eco-friendly features and designs, in keeping with global developments in sustainable living.

Menon also offers some advice to prospective buyers. “Anyone considering making long-term investments in the UAE's luxury real estate market must undertake extensive research, taking into account factors including location, developer reputation, timely project delivery, and most crucially, quality.” In addition, he believes that a strong grasp of the UAE’s legal landscape that governs every real estate transaction will help buyers make informed decisions and unlock the full potential of the investment.

Excerpts from the interview:

How do you perceive the current state of the luxury real estate market in the UAE in 2024, and what factors are influencing its dynamics?

The UAE's luxury real estate market is expected to remain robust in 2024 due to the ongoing demand for luxury properties. There are several factors influencing this growth, including the country’s strategic location, economic diversification efforts, and a growing influx of foreign investors. The market continues to adjust to changing consumer expectations, placing greater emphasis on smart technologies, individualised experiences, and sustainable features.

Given the evolving economic landscape, what strategic shifts or innovations do you anticipate in the luxury real estate sector this year?

In response to the shifting economic environment, the luxury real estate industry is modifying its strategy by focusing on technological integration, immersive virtual experiences, and sustainable practices. Smart houses, eco-friendly architecture, and wellness-focused amenities are becoming increasingly popular in response to the evolving needs and values of luxury property buyers.

Are there specific regions within Dubai that you believe are emerging as hotspots for luxury real estate investments this year?

Dubai has surpassed other international real estate hotspots to become a global leader in the luxury property market. The demand for luxury real estate among local consumers is anticipated to soar as we look at thriving hubs within Dubai. MBR, or Mohammed Bin Rashid Al Maktoum City, is one such location that is in demand this year. We believe buyers can purchase a luxury property in a bustling, metropolitan location or a calm, serene setting depending on their lifestyle and needs, and Dubai offers a wide variety of these options.

Considering the global trends in sustainable living, how is the UAE's luxury real estate market incorporating eco-friendly features and designs in 2024?

In 2024, the UAE's luxury real estate market will be progressively integrating eco-friendly features and designs, in keeping with global developments in sustainable living. These advancements, which are in line with the country's commitment to environmental responsibility, focus on energy efficiency, green construction certifications, and environmentally friendly landscaping. The UAE's declaration of 2023 as the Year of Sustainability and the world's spotlight on Dubai for hosting the prestigious COP28 summit later that year further promoted this vision. We have also witnessed a significant surge in sustainable luxury real estate in recent years due to the demand for environmentally and socially responsible living options among consumers. This trend has compelled developers to integrate sustainable practices and technologies into luxury real estate projects, completely transforming the country's real estate segment.

What impact, if any, have geopolitical factors had on the real estate market in the UAE, especially in the luxury segment, and how do you foresee these factors shaping the industry in the coming months?

Despite the uncertainty in the global economy, the UAE's reputation as a safe haven for investors is likely to prevail, driving more investors to enter the UAE real estate sector. Similarly, an influx of expats is also boosting rental property demand. Dubai’s status as a global business and tourism hub further makes it susceptible to global economic fluctuations. Though investor sentiment may be influenced by global uncertainties, the UAE's stability and pro-business policies continue to attract a multitude of buyers. These elements, in our opinion, are likely to influence industry dynamics and highlight the significance of adaptability and strategic risk management.

As a seasoned expert in the industry, what advice would you offer to individuals looking to make long-term investments in the UAE luxury real estate market in the current economic climate?

My advice to anyone considering making long-term investments in the UAE's luxury real estate market is to undertake extensive research, taking into account factors including location, developer reputation, timely project delivery, and most crucially, quality. Another crucial consideration is to embrace sustainable and technologically advanced properties that fit with evolving preferences. Additionally, a strong grasp of the UAE’s legal landscape that governs every real estate transaction will help buyers make informed decisions and unlock the full potential of the investment.

—issacjohn@khaleejtimes.com

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