Is now the ideal time to invest in luxury beachfront real estate?
The UAE's real estate market is poised for continuing expansion after displaying great fortitude in the wake of the worldwide pandemic. As reported earlier this year, as the market continues to adjust to the increased demand, property prices across our country are projected to grow further in 2023.
The UAE's real estate market is poised for continuing expansion after displaying great fortitude in the wake of the worldwide pandemic. As reported earlier this year, as the market continues to adjust to the increased demand, property prices across our country are projected to grow further in 2023.
UAE markets on the rise
This tendency has already begun to show itself, particularly in Dubai, where experts predict that continued market expansion will support cash flow, consistent profitability, and rising credit metrics.
With a total of 219 residences priced at more than $10 million sold in 2022, luxury real estate segments seem to be matching this success. Only New York, Los Angeles, and London saw more sales of ultra-luxury real estate during the previous year, making Dubai the fourth most active city in the world for such transactions.
These numbers are encouraging for everyone who plans to invest in real estate in the UAE. However, we believe there is one area in which Dubai excels above its peers abroad, including Los Angeles.
Let's visit the beach!
Beachfront homes are not just found in Dubai. Technically speaking, most coastal regions around the world have comparable premises. However, some of the most coveted luxury beachfront residences on the planet can be found in the UAE as a whole.
In addition to being desirable places to reside, properties along the picturesque white-sand beaches that line the UAE's coast make good long-term investments. With tranquil views of both sparkling cityscapes and the Arabian Gulf, first-rate global transportation options, and close proximity to vibrant metropolises, it should come as no surprise that developers are finding it difficult to keep up with rising demand from consumers.
Premium beachfront real estate has long been considered a wise investment, but now may be the ideal time to add these assets to your portfolio.
An exciting pipeline
There are undoubtedly many possibilities to do so. For instance, DAMAC Properties is making good headway on beachside projects both in the UAE and internationally.
For instance, DAMAC Lagoons is extending beachside living inland from Dubai. This master-planned community will provide its own beaches and waterfront properties and is situated in DAMAC Hills. A wide range of water sports, such as sailing, fishing, and snorkelling, will also be available in the neighbourhood. In addition, DAMAC Lagoons is a sustainable project that is being built in accordance with world-class standards, proving that opulent beachside life doesn't have to be expensive.
DAMAC Properties and Mandarin Oriental have partnered to create Mandarin Oriental Bolidhuffaru Reef in the Maldives outside of the United Arab Emirates. This island resort, which is slated to open in 2025, will span 34 hectares and include a total of 120 luxurious villas. More than half of these buildings will be built over water, and 56 of them will be on beaches.
And these are just two particular DAMAC Properties instances. On a larger scale, the industry is seeing a sharp increase in beachfront construction as suppliers try to take advantage of the demand for these highly sought-after investment possibilities.
Is it a good idea to invest right now?
The best time to buy beachfront property may ultimately depend on your unique situation. Does your portfolio have a hole for this? Can you raise enough money? Individuals should think about each of these aspects before making a choice.
In any case, the state of the market right now strongly suggests that now is an excellent time to buy these assets. Beachfront locations are anticipated to be a significant growth driver for the UAE's premier real estate industry in 2023, and there are no indicators that this trend will slow down in the following years. For instance, five of the eight clusters at DAMAC Lagoons have already sold out, and other seaside developments in our sector are experiencing comparable levels of demand.
In the end, the UAE's beaches are doomed, and as DAMAC Lagoons shows, homes don't even need to be near the water to offer this lifestyle. Supply levels at the moment are strong, but so is demand.
So, if you have the resources and are underinvested in this market, this would be the perfect time to think about adding a beachfront investment to your portfolio.
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If you have any questions, get in touch and speak to a knowledgeable member of the team.