Global aviation passengers numbers to exceed pre-pandemic levels next year
The first of the floating villas is expected to be open by the end of this year. Would could these types of property mean for the market here in Dubai?
The introduction of floating villas in Dubai’s real estate market could have several implications which will change the impression of Dubai real estate entirely.
Unique and prestigious offerings: Floating villas would bring a unique and luxurious property option to Dubai’s real estate market. Such innovative and exclusive offerings often attract high-net-worth individuals and investors seeking distinctive and prestigious properties. This could elevate Dubai’s reputation as a global destination for luxury real estate.
Increased tourism and visitor interest: The presence of floating villas in Dubai would likely generate curiosity and interest among tourists and visitors. People might be drawn to experience the novelty of staying in a floating villa, thereby boosting tourism and increasing demand for short-term rentals. This could have positive effects on the local economy, as tourists spend money on accommodations, dining, shopping, and other services.
Potential for higher property values: The introduction of floating villas could potentially drive up property values in Dubai, particularly in areas where they are concentrated. The scarcity and uniqueness of these properties could create a sense of exclusivity and desirability, leading to increased demand and subsequently higher prices with a high ROI. Existing property owners in the vicinity might benefit from the appreciation of their properties by offering it for short term & long term rental with high yield.
Diversification of the real estate market: Dubai has a diverse real estate market, offering various types of properties ranging from high-rise apartments to luxury villas. Introducing floating villas would further diversify the market by adding a new category of properties. This diversification can attract a broader range of buyers and investors, both locally and internationally, who may be interested in this distinctive living experience.
Technological advancements and innovation: Floating villas require innovative engineering and design to ensure stability, sustainability, and functionality. The development and implementation of such projects can contribute to technological advancements and innovation within the construction and real estate sectors in Dubai. This can have a positive ripple effect on the overall development of the city and its reputation as a hub for cutting-edge architecture and design.
Is there an appetite for island destinations right now in the region? Who is most likely to buy these types of property? Which market will they come from?
Dubai has a diverse and international real estate market from luxury property to villas and apartments and there is always inclination for a unique product to grab, attracting buyers from around the world.
Dubai real estate has always focused in offering the best and a unique property to the world, which not only fulfil clients dream but also amaze them of the ultimate living.
High networth individuals: Island estate, being a luxury and exclusive property type, are likely to attract high networth individuals (HNWIs). These individuals often seek unique and prestigious properties as investments, vacation homes, or status symbols. Dubai has been a popular destination for
HNWIs, including celebrities, business tycoons, and affluent individuals, who are drawn to the city’s cosmopolitan lifestyle, business opportunities, and upscale amenities.
International Investors: Dubai’s real estate market has traditionally been appealing to international investors, and floating villas could capture their attention. Investors from various regions, such as Europe, the Middle East, Asia, and beyond, have shown interest in Dubai’s real estate market in the past. These investors are often attracted by the city’s tax benefits, stable economy, strategic location, and potential for high returns on investment.
Lifestyle buyers and second homeowners: Island City can be appealing to lifestyle buyers and those seeking second homes in Dubai. Some individuals may be looking for a unique and luxurious living experience, while others may see it as an opportunity to have a vacation home in a prestigious one of a kind location. These buyers could come from a range of backgrounds and locations, including expatriates living in Dubai, international buyers looking for a holiday home, or individuals seeking a change of lifestyle.
Tourism and hospitality industry: The island getaway also have a connection to the tourism and hospitality industry. They could be marketed as high-end vacation rentals, providing tourists and visitors with an exclusive and memorable experience. The demand for such accommodations could come from both domestic tourists within the UAE and international tourists who visit Dubai.
Is there still much interest in the project from potential investors? Or have delays killed off any momentum?
There is always a high interest and demand for an exceptional property which is sea-facing, whether it’s a villa or an apartment in Dubai and it also bring more demand if the property is located in the island, no one prefers to miss the opportunity of island paradise living which also will bring higher returns in the upcoming time. Yes, it’s true that it has slightly reduced the interest of the clients in the local market but there was always a high demand for the international clients as they were amazed by the uniqueness and they were well prepared for the wait to be a part of it.
Is there a need to diversify the luxury market here as it evolves? If so, why?
Diversifying the luxury market in any location, including Dubai, can be beneficial as the market evolves so it is always required to launch something different than what the market is already offering.
Here are a few reasons why diversification may be necessary:
Meeting changing consumer preferences: Consumer preferences and demands evolve over time. By diversifying the luxury market, developers and investors can cater to a wider range of preferences and appeal to a broader customer base.
Addressing saturation and competition: Luxury markets can sometimes become saturated with similar offerings, leading to increased competition among developers and potentially stagnant growth.
Diversification allows for the introduction of new and unique luxury property types or experiences, helping to differentiate the market and maintain competitiveness.
Expanding target markets: Luxury markets often rely on attracting international buyers and investors. Diversification allows for the expansion into new target markets, including emerging markets or those with growing affluence. By broadening the appeal of luxury offerings, Dubai can attract a more diverse pool of buyers, bolstering investment and overall market growth.
Enhancing reputation and competitiveness: Diversification can enhance Dubai’s reputation as a global luxury destination. By offering a variety of unique and high-end properties, the city can position itself as a leader in luxury real estate, attracting discerning buyers and investors who seek exclusive and distinctive offerings.
The writer is head of off-plan and Investments at Betterhomes.
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