Real estate professionals reported that Dubai has become a safe haven for the wealthy, celebrities, traders, and individuals amid the increasing spread of the COVID-19 pandemic. They highlighted a strong movement in specific real estate categories favored by these groups, such as villas and penthouses. This trend is attributed to several reasons, primarily the UAE's efforts in combating the first and second waves of the virus, adjustments to citizenship laws, in addition to the facilities provided to investors.
They mentioned to "Emirat Al-Youm" several examples of wealthy individuals who purchased properties in Dubai in recent days, especially in March and April, coinciding with the rise of the virus in their home countries, confirming that the UAE, particularly Dubai, has become a safe health and commercial haven for them.
Furthermore, statistics from the Dubai Land Department showed that areas like Palm Jumeirah, Burj Khalifa, Mohammed bin Rashid Gardens, and Business Bay (among the highest-priced areas in Dubai) recorded total sales of 10.8 billion dirhams in the first quarter of this year, compared to 5.09 billion dirhams registered during the same period last year, achieving a leap of 112%.
### Significant Facilitation
In detail, Abdulkarim Mulla, CEO of Standard Properties, stated that "what is unique about the UAE is that it turns crises into opportunities, which is an attracting factor for real estate investors who focus on the most secure and stable areas during crises, alongside significant facilitation offered to foreigners, professionals, and researchers in scientific fields to own properties, residency grants, and developed infrastructure."
Mulla added that "one of the reasons wealthy individuals are flocking to invest in Dubai's properties is the global economic slowdown, and the struggles of several major economies due to the COVID-19 pandemic, while the local market is witnessing a noticeable recovery and a high influx of liquidity."
### A Safe Haven
For his part, a real estate expert, who requested anonymity, mentioned that he recently sold a property (a penthouse unit) to a Dutch billionaire, who confirmed that the reason for purchasing property in the UAE is due to attractive investment opportunities and low tax rates.
He added that "the Dutch billionaire pointed out that the security in Dubai amid the COVID-19 situation is the most significant advantage behind his investment in Dubai's real estate, given the deteriorating conditions in Europe," confirming that this trend is shared by many investors opting to reside and invest in the UAE, or at least come to hold regular meetings with other investors, noting that "this is similarly a trend for about 20 other wealthy Dutch individuals within his circle."
Regarding the reasons for the Dutch billionaire's arrival in Dubai, the real estate expert stated: "Safety and security alongside stability," as mentioned by the Dutch billionaire, in addition to the ability to cope with any difficulties. "A prime example of this is the global economic crisis of 2008, during which the global economy nearly stopped; however, Dubai presented the world with the tallest tower in the world (Burj Khalifa) in 2009."
### A Safe State
Furthermore, real estate expert Mohammed Abouharab mentioned the increased demand for luxury properties in Dubai in recent times, driven by investors, especially from countries affected by the pandemic, who feared the accompanying repercussions. They began transferring their liquidity to a safe country like the UAE, especially Dubai.
He added that "the spread of the virus's mutated strain in several countries led a significant number of investors from India and some European countries to move to Dubai, ensuring the growth of their investments in the UAE, which has strong precautionary measures against the virus, especially since it has vaccinated most of its citizens and residents to achieve community immunity."
He pointed out that there is a growing interest in luxury properties in Dubai, particularly villas in Mohammed bin Rashid City, Palm Jumeirah, and Pearl Jumeirah. He noted that most wealthy individuals are looking for safety and stability and certainly do not prefer to remain in countries that are struggling with weak health systems and cannot manage the pandemic and its economic lockdowns.
### New Trends in Real Estate
A recent report by Datafinder, specializing in real estate research, showed that the COVID-19 pandemic led to the emergence of new trends in Dubai's real estate sector, notably the clear increase in demand for villas and townhouses, making them one of the most significant sales trends recorded in the sector.
“Our agency is witnessing significant interest from wealthy individuals and celebrities looking to invest in Dubai’s real estate sector, with many successful deals completed with this group,” said Mohammed Al-Mutawa, Chairman of Al-Waleed Investment Company, explaining that there is a general sense of optimism in the real estate sector currently, supported by the substantial sales leap in recent times.
Additionally, the Dubai Land Department's statistics indicated that the luxurious areas such as Palm Jumeirah, Burj Khalifa, Mohammed bin Rashid Gardens, and Business Bay achieved total sales of 10.8 billion dirhams in the first quarter, compared to 5.09 billion dirhams in the same period last year.
The announcement reiterated that Dubai has emerged as a significant attraction for wealthy individuals seeking secure and stable investment opportunities amid the challenges faced globally due to the pandemic.
