At the time of the launching the new properties, most were disappointed with the quality Delivered, and the real estate experts were very cynical of the longevity of this industry in Dubai, and whether Dubai will become a global real estate megapolis, not taking into account the natural evolution process of such industries.
In 2009 Dubai was being compared to the likes of Manhattan and Mayfair, in terms of quality, finishing standards, scarcity, over supply, unjustified premiums, and lack of trophy assets, which in its core was such a naive trait of an inexperienced practitioner, Dubai has a very special set of stages that it went through, and at its infancy stage, while trying to catch up with the rest of the world, the global financial crises had diminished the thrust of its trajectory, or that’s what the same naïve inexperienced practitioner thought, and the infamous line from most Dubai cynics was, “ this is such poor quality, and who will buy all of this supply? “
Well let me remind you of a few things, when a new industry is being created, the basics must be covered first, to establish momentum and create real demand, I mean who would buy a $200 million dollar home in South Sudan? I mean it could be built, but who would want to buy it other than the war lord who built it! It’s like building a super yacht where there are no birthing spots.
Thus, Dubai had to create the infrastructure to support the market for creating and seeking such high end premiums, and eventually being the home of such trophy assets.
In 2022 Dubai had surpassed the value of real estate transactions of:
New York
Paris
London
Hong Kong
COMBINED
And it seems like in 2023 we are on our way to set a new world record.
Today, Dubai has the highest number of $10 million plus transactions in the world,
and soon Dubai will announce the most expensive penthouse and the most expensive villa ever sold.
It is imperative to note that the average price per square foot in Dubai is still significantly lower than those mentioned cities, where it could go up to $20,000 a sqft in some neighborhoods, while Dubai is still at $1,600. so imagine what kind of prices Dubai will achieve in the near future.
And of course such trophy assets cannot fetch such numbers unless they possess the highest level of quality and standards.
Yet all of this evolution took place in less than two decades, at this pace, Dubai will set the new gold standard for real estate, given all these facts, it is wisely safe to assume that there still a lot of gains to be made by all industry participants, and it is not too late to enter now .