Despite the apparent consumption which is preventing the fitful property market of Dubai, the apartments at the Royal Atlantis are standing apart. This 795-room hotel which will be sharing the building along with 231 height and homes is presently under construction on the artificial archipelago which has been created by Palm Beach Jumeirah of Dubai at the cost of $1.4 billion. The building is expected to be 700 meters tall with 40 floors extending 190 m into the air.
The construction manager of the site, Alan Lim surveys the site from an observation deck under the extreme heat of 40°C, looking at the six concrete towers jutting out into the sky from the desert. He is now concerned with the construction of the lift shaft in the main lobby. The architects of the project have decreed that the residents should be collected from one side and deposited on the other to remain there for the duration for its accent surrounded by a waterfall.
Dubai considers water features as a theme and the Royal Atlantis is equipped with an 80-meter long communal pool that will be provided for just the club area of the residents, 90 m into the sky. The project also has 64 additional private swimming pools out of which most featured one is on transparent side, making this building the only one in Dubai where people can spend underwater even when they are 45 m high in their towers and getting a view of the skyline of the city.
The Property Market Of Dubai Needs The Razzmatazz As Attractions
Dubai does not have huge oil revenues like its neighbors Saudi Arabia and the residents cannot be considered as belonging to the superrich variety of people. However, this tiny emirate is one of the most liberal cities in the Middle East where a portion of the population is looking at unique selling points of a project when making investments. The water features are a favored choice of the superrich according to David Godchaux, the chief executive of Core Savills of Dubai. The locations preferred by the superrich from Dubai are mainly in Emirates Hills, by the Jumeirah Lakes neighborhood where one can find some of the plush homes individually constructed close to the Emirates golf club. The prices of these projects are ranging between $22 million for an eight-bedroom villa to about $6.25 million for a six-bedroom villa.
It is quite possible that the residents of Dubai may begin to change their preferences and of for the European model of homes which are mainly in the low-risk category. The residents are trying to move away from the domination of vehicles and are choosing to live in locations where shopping and restaurants will have easy accessibility. Residents could also be looking forward to a walk during the latter half of the year when temperatures drop below the low 20s which is unlike in the summer months when the temperatures can be as high as 40°C.
There has been a shift in the ownership of property which was earlier limited only to residents of the Gulf Cooperation Council. The reforms which have been implemented are giving access to the property market even to residents from other countries.
The option to change title deeds is certainly having an immense impact on the property market. Some locations in the Jumeirah neighborhood are restricting land titles just for GCC residents and the prices for properties in this region are estimated to be in the range of $5.5 million. However, the new properties which are being constructed just a kilometer away on plots half the size are expected to fetch a price estimated to be around $11 million.
Will The Prices of The Property Market Of Dubai Continue To Spiral?
The changing tastes of the residents may attract a section of property buyers away from the plush scale of the project by Royal Atlantis. However, it is unlikely that the top end buyers of Dubai will even blink at the prices. Dubai is home to 8380 residents holding more than $30 million each and this is the city which has a major portion of the superrich in the Middle East collectively holding $1.4 trillion.
In 2017, the property market has until this moment reported strong sales data with more than 6000 homes being sold until June 2017 which is a 6% gain over a similar period in 2016. The sanctions imposed by the UAE on Qatar are unlikely to have any impact on the property market because the residents of Qatar were anyway funding fewer than 2% of the sales in 2016.
Dubai May Witness A Downward Spiral In The Property Market
Data which is presently available about the prices should concern buyers and especially those who are considering investments in the higher end property market. The prices of homes in Dubai have dropped by 13% as compared to the peak in July 2014, according to data released by the government. The prices for apartments in the Burj Khalifa, which is the largest building in the region, also dropped by 25% in March 2017. The city estimates that the prices of super prime time property market have declined by 25 to 30% from the second half of 2014. The finest homes in Dubai are presently available at a price which is 55% lesser than the price which was quoted in the third quarter of 2008. The outlook for the property market in Dubai doesn’t look optimistic at the moment with the top end housing market being affected the most.
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