Appetite for luxury residential property in the UAE is on the rise and developers are lining up more offerings to cash in on the increasing demand, according to a top developer.
“There is appetite for luxury offerings. We have seen that everywhere that is luxury is selling and there is lot of demand,” Ahmad Shibel, CEO of Taraf, the real estate division of Abu Dhabi-based Yas Holding Group told Zawya Projects.
Taraf has started construction of its luxury offering ‘Luce’ in Palm Jumeirah. The 9-storey residential building (excluding two basement floors) will contain 38 apartments with 2-, 3- and 4-bedroom offerings, besides duplex apartments and a penthouse, and offers private beach access and exclusive lifestyle amenities.
The project was sold out within hours of its launch in February 2023.
The development value is 350 million UAE dirhams ($95 million), with a 2-bedroom apartment costing AED7 million, 3-bed room AED10 million and 4-bed room AED15 million.
The 10,000 square feet penthouse will have a private lift and swimming pool. Duplex apartments on the ground and first floors with garden and swimming pool cost more than AED45 million each.
Taraf partnered with MZ Architects for the design and Asasat Aldhafra APCC Building Contracting for construction, with the latter starting enabling works in August.
“Luxury is something that people buy ‘aspirationally,‘ as over the years they have built up wealth and now they want to keep it,” Ahmad said.
Yas Holding CEO Low Ping echoed Ahmed’s views: “We see there is lot of appetite for residential luxury offerings, whether it is villas or apartments.”
“Dubai has put itself up in the global market for luxury, whether it is in real estate, entertainment or shopping. For the luxury market Dubai itself is a destination,” she said.
“People have cash and after the Covid-19 pandemic they have lot more to invest. It is not that they have to borrow to invest. If they invest with borrowed money, there is a problem because interest rates are going up,” she added.
A recent report has predicted continued demand for luxury residences and villas in the UAE in view of the ongoing post-pandemic global readjustment and global attraction to Dubai’s ‘largely untapped’ luxury property market.
Dubai achieved a record in the luxury property market this year with reported sales of 335 luxury units till July end, making 2023 the most successful year for the luxury segment.
Ahmad, as well as Ping, confirmed that Taraf will be launching two to three projects in Dubai this year.
“Right now, our focus is on Dubai, where we have a few projects in the pipeline.”
Taraf’s second ongoing project, which is in the more affordable segment launched in July 2023, is Terrazzo Residences in Jumeirah Village Circle (JVC) with a development value of AED180 million. The project is spread over two low-rise buildings, housing one-to-three bedroom apartments.
(Reporting by Bhaskar Raj; Editing by Anoop Menon)
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