Deyaar Development has introduced its luxurious ‘royal palace’ at the top of the newly launched Downtown Residences tower near Sheikh Zayed Road, with a price range between Dh80 million and Dh90 million, equivalent to $21.78 million and $24.5 million. The announcement comes amid a rising demand from buyers, according to the company’s chief executive, Mr. Al Qatami.

This week, the Dubai-listed company unveiled its 445-metre high Downtown Residences, which features 110 floors and is touted as the largest project Deyaar has undertaken to date. The company plans to start selling the units next week, offering one-bedroom apartments priced at Dh1.8 million, alongside penthouses and duplexes.

Deyaar anticipates generating Dh2 billion from the sale of housing units, with construction expected to commence by the end of the year, Mr. Al Qatami stated. He noted that there has been significant initial interest from potential buyers, who are keen to learn more about the project, pricing, and payment plans.

The company is not only targeting Emiratis and residents but also aims to attract buyers from Europe, China, and various Asian markets. Deyaar estimates that approximately 60 percent of the 522 units in Downtown Residences will be sold within this year.

To finance the construction, Deyaar plans to utilize cash generated from off-plan home sales, with Mr. Al Qatami mentioning that the company has over Dh900 million in unutilised bank facilities available. He clarified that these bank loans have already been approved but not yet utilized.

The UAE’s property sector is witnessing a boom, driven by government initiatives such as residency permits for retirees and remote workers, coupled with sustained economic growth resulting from non-oil sector diversification. The influx of wealthy individuals into the Emirates is also contributing to this market momentum; last year saw 7 200 millionaires moving to the UAE, following an influx of 4 700 in 2023 and 5 200 in 2022, as reported by property consultancy Knight Frank, which cited data from Henley & Partners.

By the end of December, the total number of US dollar millionaires in the UAE reached 130 500, making the country the 14th-largest wealth market globally. Demand for homes remains robust in Dubai and across the Emirates, driven by a growing population as many individuals relocate to the region for work and residence. Mr. Al Qatami explained that people are migrating from various locations including Singapore, the US, UK, Europe, India, Pakistan, and some Arab countries.

He emphasized that the reasons for relocation vary, but many believe the Emirates is an ideal place to live. As long as this trend continues, the real estate sector is expected to remain healthy, allowing for leasing or selling units at favorable rates.

Regarding price expectations, Mr. Al Qatami indicated that property prices are likely to “stabilise at a certain level” this year and will not drop due to sustained demand. Contrarily, a recent report from Fitch predicted a potential 15 percent decline in Dubai property prices this year due to oversupply in the market.

While Fitch expects unit deliveries to double in 2023 and 2024 compared to previous years, Mr. Al Qatami acknowledged the possibility of oversupply occurring by the end of next year, which could lead to a price correction. However, he noted that this situation will largely depend on ongoing population growth and the influx of new residents into Dubai.