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Building & Construction Lifestyle Living Real Estate World

Dubai’s Luxury Market Shows No Signs of Slowing Since its 2021 Surge; Expansion Expected to Continue this Year

Dubai’s luxury real estate market is poised to continue booming in 2023, with a deluge of international ultra-high-net-worth investors flocking to the city amid economic and geopolitical uncertainty elsewhere.

Gulf Business has shed light on the key factors providing an impetus to the substantial influx of private wealth for ultra-luxury properties in UAE over the last year.

The sale of prime real estate in Dubai increased 89% in October 2021 from the previous year—a speedy recovery from a steep slump prevailing from 2014 to 2020. Dubai’s real estate market climbed so fast that it caught many off guard.

Dubai Luxury Real Estate Market Booming

2023 is witnessing a sharp rise in the demand for properties in the city’s prime and super prime enclaves, such as Downtown Dubai, Dubai Marina, Palm Jumeirah, Jumeirah Bay, and Business Bay.

Luxury prime properties in Dubai have been transacted for a whopping 7235 dirhams per sq.ft. in the first quarter of the year—a jump of 16% from 6,250 dirhams per sq.ft. registered in 2022.

Driving Forces Behind Dubai’s Luxury Real Estate Market Boom

The global upheaval has seen a flight of capital from Commonwealth of Independent States (CIS) countries recently, and Dubai’s luxury property market has proven to be a prime benefactor due to its faster recovery from the pandemic crisis. 

The ultra-luxury hotels, exclusive penthouses, and villas with exquisite views are helping Dubai cement its iconic position in the luxury real estate market, thus making it the preference of wealthy buyers.

The hiking interest rates, soaring inflation, and deep recession looming over the West are unlikely to dent Dubai’s real estate market growth.

Again, UAE’s tax-free regime, pro-business policies, and easy mortgage plans are some key factors incentivising investors worldwide to snap up properties in Dubai.

However, mortgage transactions account for only a quarter of overall property deals in the city as most properties are bought by high-profile investors who are less bothered by mortgage rates. 

Off-plan payment structures which offer post-handover payment plans to investors, have made Dubai’s real estate top the customers’ list. Off-plan payment enables investors to rely less on borrowing, effortlessly adapt to foreign exchange fluctuations, and use strategies to retain their wealth.

The city’s excellent climate, safety, and unrivalled sun-sea-sand lifestyle have scintillated a terrific comeback leading to a meteoric rise in luxury property sales. Case in point: Dubai’s luxury real estate market has been ranked fourth globally, closing in on New York (NY), Los Angeles (LA), and London.

In 2022, this Middle Eastern real estate business hub racked up 219 property sales valued at USD 10M or more, compared to 93 in 2021—a jump of 135%.

By comparison, NY recorded 244 sales worth around $10M, LA 225 transactions, and London 223.

The fast development of townhouses and apartments with a brand name has long been considered a key factor in buoying Dubai’s property market. Around 48 branded projects in Dubai are poised to be delivered in the next few years. 

Again, with millionaires preferring contemporary design, interior design services in Dubai, such as Accouter, are getting a push. High-end interior design studios can turn exclusive spaces into exquisite residences while ensuring a superior living experience.

Wrapping Up

Despite soaring prices, Dubai’s luxury real estate market is set to see substantial growth this year with record-high sales. 

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Financial Market Lifestyle Living Real Estate U.K

UK’s Real Estate Market Is Radiating Optimism After Enduring a Tough Nine Months

After facing a ‘perfect storm’ for the last nine months, the UK’s real estate market is now radiating optimism again.

Improving buyer inquiries, and lower-than-anticipated interest and mortgage rates had made the real estate market see some hope to recover in the coming months after a stagnant start to the year, reported Schroders.

Correction in Prices in UK’s Real Estate Market

Britain’s real estate market has reportedly encountered a sharp correction in prices since the onset of the financial crisis of 2008. Last summer, capital values started to plunge and are now around 21% below their peak value last June.

But, how much more will the price slump before the market is stabilised and investors feel confident to place their capital again?

Increasing Cost of Borrowing – The Main Culprit

A hefty hike in interest rates affecting investor sentiment is the key factor contributing to the rapid depression in capital value. Within a year, the total cost of hedging debt on good quality assets has soared to 6% from 3.5%. The yield on 10 year bonds in the UK is now at 3.75%, which was roughly 1% at the beginning of 2022.

As a result, investors owning equity and debt-backed buyers have asked for lower prices as part of their effort to hit their return targets. 

The buyer-seller stand-off has driven up the gross real estate yield and depressed transactions. 

In January 2023, the average initial yield soared to 5.2% up from 4.2% in June 2022. The total transaction value recorded in the final quarter of 2022 slipped by 60% from 2021. On the other hand, rental values continued to rise gradually through the second half of 2022.

Inflation Is Showing Signs of Decreasing

Whether the paradigm will shift to the right largely depends on interest and inflation rates.

The UK’s inflation rate is now at 10.40%, compared to 10.10% in February and 6.20% last year—higher than the long-term average of 2.73%.

The higher inflation rate looming over the country can lead to inflated interest rates making borrowing costs spiral upward.

However, with supply bottlenecks easing and utility prices starting to stabilise, inflation is anticipated to halve and reach roughly 5% by the end of this year.

Meanwhile, the Bank of England (BoE) is forecast not to raise interest rates any further this year after increasing it once again to 4.25%. 

Again, despite falling prices, the UK housing market is showing signs of stabilisation, as buyer inquiry and sales activities increased last month. 

A net balance of -29% of surveyors reported a rise in new buyer inquiries last month, up from -45% in January. Even though this is the 10th negative reading in a row, indicating a decline in demand, it is the smallest drop since last July, said The Guardian, citing Royal Institution of Chartered Surveyors (RICS) monthly survey.

That said, the demand for high-end real estate agents like Quintessentially Estates is expected to increase with the housing market rebound. A top-tier real estate company is always on hand to help clients with all property needs. 

Schroders anticipates that the plunging house prices in the UK will push the BoE to adopt monetary policies to keep interest rates low. 

Buying Interest Is Increasing

Analysts unanimously agreed that the rising yields since last year are making the real estate market affordable to investors with equity and UK pension funds. 

“The spread between the average initial yield and 10-year bonds is now back to 1.5%, close to its average of 2% over the last 30 years,” reported Schroders. “The gap is lower than in the last decade when it averaged 3%, but the spread was exaggerated by quantitative easing which artificially lowered bond yields.”

Again, with international investors snapping up properties in the UK, the country’s real estate market is getting a boost.

The UK’s real estate market has been ranked second globally amid a resilient economic recovery with Asian, North American, and Middle Eastern investors interested in European properties.

As a result, the UK has been identified by far as the largest and most liquid commercial real estate market in Europe and has been re-priced more rapidly. To some extent, the reason is the stabilising British sterling and falling political and economic risks after Rishi Sunak has been appointed as the UK prime minister in October 2022.

Real Estate Market Falling into Place

With investor demand gradually falling into place, the UK’s real estate market has started recovering. Stabilising British Pound value, faster re-pricing of the UK’s real estate market, and bond yields approaching equilibrium are all making the market radiate optimism. If the soaring inflation rate and current looming recession in the UK continue to ease, investors are expected to consider deploying capital later this year.

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Lifestyle Living Real Estate U.K World

Celebrating the Game-Changing Women and Their Contribution to the Design Industry

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In a recent post, Vogue celebrated the most influential female designers in the realm of interior design and real estate. To expand on this topic even further, here’s a list of some of the most influential female designers currently taking interior design and architecture to new heights.

Kelly Wearstler

With a bevy of commercial and residential projects stunningly reflecting her evocative skills, lifestyle designer Kelly Wearstler has successfully grown into a global voice through her exquisite designs.

Since its founding, The Rug Company—Kelly’s luxury lifestyle brand and a collection of statement elements and products finished with great panache—has been synonymous with sophistication and soulful vibes.

“There is always a sense of refinement but also a rawness to our projects, which brings that soulful spirit,” said Wearstler.

Stella Gittins

Better known for her unparalleled skill of blending ultra-luxury design with sophistication, Stella Gittins, the co-founder and Group Director at Accouter Group of Companies (AGC), helps transform the interior architecture of a space into a unique, timeless environment. 

“Interiors and fashion tend to change side by side, with people investing a bit more in higher quality pieces that last over time, ” said Stella when asked about the evolution of design in response to lifestyle changes. “Rather than following trends, our designs for private clients are more timeless with items people will keep for generations. Across all our brands, we try to incorporate old forms of craft as well as things made in the UK.”

Part of AGC and a proud member of Walpole, Accouter—a leading international interior design studio—helps drive sustainability in the luxury industry.

A woman with tremendous creativity and reimaging skill, Stella is a trailblazer of success in an industry where women contribute, but men reign. 

Blainey North

​Renowned for taking a contemporary visionary approach blended with high-end interior design skills and broad-ranging intellectual curiosity, Blainey North delivers luxury.

“Without a doubt, it is important to acknowledge the past, present, and future female creative powerhouses that continue to define our world. Equally, from my perspective, it’s crucial that we don’t look to attach a gender to a piece of design-based, for example, on its form, colour or materiality,” said North. “None of which negates the contribution that incredible women continue to make.”

India Mahdavi

Iranian-French architect and interior designer, India Mahdavi has worked on a multitude of large-scale hospitality projects, collaborated with high-net-worth clients, and even launched her own furniture line that reflects her exceptional multilayered design skill.

She is a doer and a relentless force for bringing change in the design era.

Paola Navone

Born in 1950, Milan-based architect-designer Paola Navone has become a formidable player in the design industry for her prolific, highly-stimulating state-of-the-art works. 

A doer and design insurgent, Paola’s exceptional and malleable style is influenced by late-20th-century Italian metamodernism and the Thai concept of “tham ma da” (“every day,”), aiming to discover new uses for standardised, low-priced, and utilitarian items.

When asked about her female approach to design, Navone said, “Sometimes women are more curious and attentive to the nuances, more intuitive and likely to grasp the non-rational and emotional part of reality…The female approach to creativity tends to be more delicate and careful.”

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Lifestyle Living Real Estate U.K

World’s Most Expensive Home Goes Up for Sale at £250M After Saudi Loan Expired

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The Holme, which stands within four acres of a private garden in Regent Park in Central London, is predicted to be the UK’s most exclusive residential property ever, with an expected transaction value of an eye-watering £250 million.

This 205-year-old lavish property has been put on the market after a massive loan secured by its Saudi Arabian owner expired, reported Financial Times.

In-Depth Insight into the Holme

Built in 1818 by the Burton family, this enormous mansion is located on Inner Circle by Regent’s Park, one of the eight royal parks in London. It was envisioned and designed by the renowned 19th-century architect Decimus Burton, famous for his neoclassical designs. James Burton, a prominent Regency-era property developer and the son of Decimus, lived in this magnificent residence. Defined by an Ionic-order portico, this exclusive trophy property is synonymous with ultra-luxury, offering a picturesque illustration of Regency architectural design.

The massive home is spread over five floors, comprising 29,000 square feet of living space and 40 bedrooms.

Despite its age, the majestic property has been carefully preserved over the years to ensure it upholds its unique grandeur while also providing all modern conveniences. 

The sweeping staircase, the elegant reception rooms with period features and ornate plasterwork all over, the museum-like art gallery, and a subterranean parking lot that can accommodate up to 20 cars are a few unique features that make this stupendous property a perfect blend of modernity and regency.

“It’s the White House in Regent’s Park,” a source told The Evening Standard. “It’s very special because you’ve got the ornamental lake, sweeping lawns, and this magnificent rear façade which looks like the rear façade of the White House. It’s the most incredible property.”

The Holme Could Beat Out the Current Most Expensive Property

Until recently, the three-story penthouse atop New York City’s Central Park Tower was the most expensive abode in the world put up for sale on the market last September for a whopping £208M. 

The mansion that hit an all-time high in the history of Britain was a Knightsbridge mansion, dubbed 2-8a Rutland Gate, a miniature private palace on Rutland Gate which overlooks Hyde Park. It was first sold for £210M in 2020, and listed for sale again in October 2022 with an asking price of £200M.

If the lakefront trophy house is transacted at the set price of £250M, it could dethrone the current highest-priced pads taking the title of the most expensive home in Britain—and the world. 

London’s Luxury Home Market

Luxury home sale market in London is outperforming the wider London market, with around 15 homes worth £5 million or more being sold in the final quarter of 2022—a jump of 63% from the pre-pandemic average. 

Exclusive properties (such as the Holme) located in the city’s most expensive enclaves, are usually acquired by wealthy foreign buyers who invest in luxury properties as part of their effort to maximise their real estate portfolio. 

That said, the market for luxury residential property management services offered by businesses such as The London Management Company (TLMC) is flourishing, with uber-rich buyers snapping up upscale properties in Central London.

Fleshing Out the Reasons Behind the Sale

According to the records from the Land Registry, since 1998, Regent’s Park’s mega-mansion mansion has been owned by members of the Saudi royal family for over three decades. However, most recently, the Holme has been seized by the bankruptcy trustees along with a New York City mansion, and a private plane after the Saudi Royals defaulted on a loan worth $180 million (~£150M). 

Due to this majestic London mansion being the highest-priced asset in the family’s property portfolio, receivers consider selling it the quickest way to repay the expired loan. 

Representatives for Prince Abdullah bin Khalid bin Sultan al-Saud, one of the beneficiaries of the property and a member of the Saudi Royal family, could not be reached for comment. 

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Finance Financial Market Living Real Estate World

Dubai’s Luxury Home Sale Booming; Ranked Fourth Globally

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Dubai’s prime residential market has been ranked fourth globally as sales of ultra-luxury residences continue to soar amid a resilient economic recovery. 

Citing a 2023 Wealth Report, Middle East Eye reported that this year, Dubai is poised to lead the world’s luxury property market, with prices rising by a whopping 13.5%.

Dubai’s Luxury Property

With the meteoric increase in ultra-luxury home sales, Dubai has landed just behind New York with 244 home sales, Los Angeles with 225, and London with 223 (in terms of the $10M-home sales).

For $25M-home sales, Dubai ranked fifth, just behind London with the highest number of 43 sales, New York with 43, Los Angeles with 39, and Hong Kong with 28.

In 2022, Dubai racked up around 219 sales worth roughly $10 million or above, compared to 93 in 2021—a jump of a staggering 135%. 

The collective transaction is predicted to be over $3.8B. 

The sale of luxury properties—more specifically, villas and “trophy” apartments—has witnessed a massive boom in Dubai, with the city’s upmarket neighbourhoods recording the best performance.

For example, despite the price for opulent residences spiralling upward, the uber-luxury neighbourhood of Palm Jumeirah is cementing its iconic status in the luxury residential market, chalking up the highest home sale in 2022.

The price of a villa in the city’s exclusive enclaves has soared by almost 80% on average since the onset of the COVID-19 pandemic.

Emirates Hills, Palm Jumeirah, and Jumeirah Bay Island are marked as the prime residential neighbourhoods of Dubai.

With the Dubai luxury market seeing a massive influx of elites preferring contemporary interior designs, the demand for high-end interior design studios like Accouter is getting a push in Dubai. 

By bringing out the best of both worlds—interior architecture and design—a high-end interior design company can turn a space into a unique, timeless environment. 

Reasons Behind Dubai’s Luxury Home Sale Boom

Even though the increasing inflation rate and tough economic headwinds have caused a massive downturn in the residential market in the West, the Emirate’s luxury market is poised to see substantial growth this year.

Awash with luxury villas, penthouses, and exclusive hotels combined with excellent safety, climate, and unparalleled sun-sea-sand lifestyle—Dubai has now become the preference of ultra-high-net-worth buyers.

The city has long been synonymous with opulence, thus making a reputation for itself as the stomping ground of the ultrarich.

Additionally, the city has been marked as one of the world’s most ‘affordable’ luxury residential markets, with most prime homes transacting for only $870/sq. ft on an average.

UAE’s affordable mortgage plans, a tax-free regime, and ease-of-doing business are the key incentives for wealthy buyers around the globe to snap up properties in Dubai.

Additionally, the country’s excellent management of the COVID-19 pandemic has sparked a tremendous comeback making luxury property sales skyrocket.

More recently, the city’s prime residential market is witnessing wealthy buyers from Russia flocking to Emirates as sanctions drive oligarchs out of Europe. 

Property agents predict at least 100,000 Russians have settled down in the UAE since the onset of the Russian invasion of Ukraine, which has almost doubled the size of the community there. 

Wrapping Up

Dubai’s luxury property market is witnessing substantial growth, buoyed by a large number of ultrarich snapping up properties in the prime neighbourhoods.

Categories
Home & Garden Living Real Estate U.K

London Landlords Can Justify Higher Rents By Setting Their Rentals Apart

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London’s rental market is in a deep crisis.

The inflated cost of living, hefty hikes in rents, and the risk of inflation looming over the UK have led to a record exodus of renters, as many plan to move to other parts of the country in search of more affordable accommodation.

The result: rapid cooling in rental home demand leading to a sharp fall in rents.

For landlords whose incomes are getting hard hit by inflated mortage rates, this could be a ‘perfect storm’. 

In light of the current state of housing, the London Post has shared a guide for landlords looking to improve their homes’ value to entice more tenants.

How to Increase Your Home Value

Except for the location of your home, there’s a whole lot of things you can do to justify higher rent and increase your profit margin, such as:

Improve Curb Appeal

Improving the curb appeal for a rental property is a great marketing strategy for homeowners looking to draw the attention of prospective tenants. 

One of the best yet affordable ways to boost the marketing of your rental property is to spruce up your building’s paint job with a new colour or a fresh coat. Nothing says quirky quite like a bold colour. A brilliant splash of colour makes the exterior of a property visually appealing, thus attracting more prospective tenants to land on your advertisement. However, you don’t need to turn your grey and white house into pink and blue. Brightening up the siding, mailbox, or front door can help bring in a bit of character to even a basic palette.

Apart from that, well-manicured landscaping, a squeaky clean exterior, attractive lighting, a high-tech entrance, etc., can help improve your rental property’s curb appeal.

Add Luxurious Fixtures

To increase your home’s appeal to high-net-worth renters, upgrading to luxury fittings and fixtures is always a sensible investment. 

Adding deck lighting, upgrading bathroom fixtures, replacing outdated bathtubs for designer tubs, etc., are a few ways you can create a buzz around your property.

Boost Your Online Presence

Advertising your rental property is critical, with at least 73% of prospective tenants turning to online sources for their search. 

With digital marketing, you can add an upswing to your renter selections while also minimising empty rental periods.

For landlords who want to be less hands-on yet need professional marketing for their homes, hiring a real estate service like award-winning Quintessentially Estate is a sensible business decision. 

Combining a multi-faceted, multi-channel property advertising approach with a thought-out marketing strategy, a professional service ensures a client’s property gets maximum traction on rental sites. 

On top of that, high-end real estate services frequently collaborate with blue-chip and leading relocation businesses to ensure landlords get access to a greater pool of high-calibre renters.

Make Sure You Have All Relevant Checks Up to Date

As a landlord, you have a spectrum of compliance obligations to adhere to, and it grows year by year. 

Ensuring all regulatory compliance checks are up to date is a legal requirement that ensures your renters are safe in a home that’s energy efficient and offers deposit protection, fire and gas safety, and more.

Failing to meet regulatory compliance can lead to hefty fines or charges, so it’s not something to skirt around.

Being transparent and explaining everything to your renters is an impactful approach that exhibits your care for your property. 

Wrapping Up

Even though the current economic upset and soaring rents are forcing tenants to leave London, landlords can maximise their property value by following the home improvement tips featured above. 

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Financial Market Living Professional Services Real Estate U.K

London’s Luxury Residential Market Booms Defying UK’s Home Sales Slowdown

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Even though the UK is now seeing the steepest slump in property prices since the 2008 financial crisis, London’s luxury residences are managing to defy Britain’s housing market downturn, reported The Business Times.

Fifteen homes in Central London valued at £5 million or higher were registered as sold in the fourth quarter of 2022—which is 63% higher than the pre-pandemic average, according to researcher LonRes. “It’s not surprising, therefore, that it tempted would-be sellers to put their homes onto the market,” said Anthony Payne, managing director at LonRes.

UK Housing Market Poised for Disruption

The UK’s housing market is facing a ‘perfect’ storm as it tries to eke out growth while coping with the surging cost of living, hiking mortgage and inflation rates, and the risk of recession. 

The result: rapid cooling in property demand and sales activities leading to a selloff in the UK’s housing market.

Let’s look at how much the British housing market and buyer demand have been impacted by current economic setbacks:

  • British home prices slid in December 2022 by the most in 13 years and are predicted to slip by a whopping 20% in 2023 if the UK’s base rate continues to hike, according to The Guardian.
  • The Bank of England has been raising the base since the beginning of 2022 as part of its effort to return inflation to its 2% target level. The bank rate has gone up to an annual rate of 4.0% in February 2023—a jump of 0.5% from 3.5% in December 2022. 
  • On the other hand, surveyors registered a net balance of -47% for new buyer inquiries in January 2023, plunging from -40% in December 2022.

In such a circumstance, analysts have unanimously agreed that the UK’s property market is facing more turbulence this year.

Wealthy Buyers Are Snapping Up London’s Luxury Property

Despite the present economic upset throughout Britain, luxury sales in London are skyrocketing, outshining the UK’s housing market. 

But why?

First off, even though the interest rate and mortgage rate have hit an all-time high this year, millionaires and elites are less likely to get affected by the impacts of the increase, as they’re less dependent on borrowing. 

Secondly, Britain’s pound continues to tumble sharply against the US dollar, dropping a full cent to around $1.20.

Part of the weakness of the pound sterling is the increase in power of the US dollar which is attracting more international investors and wealthy buyers to flock to London’s priciest homes.

Case in point: In the first half of 2022, overseas buyers purchased 48% of the total luxury home purchases in Prime London—a jump from 13% from 2021.

That said, the demand for luxury property management services offered by agencies like The London Management Company is getting a push, with ultra-high-net-worth buyers investing in upscale properties in Central London.

Offering bespoke services—from maintenance to upkeep and housekeeping—a class-leading agency ensures a client’s luxury property is well-managed, squeaky clean, and always ready for their arrival.

However, in the final quarter of last year, home sale activities decreased in Greater London due to climbing mortgage rates, soaring inflation, and high base rates.

“The final quarter of the year saw a change of direction,” stated the managing director at LonRes. “We’ll be keeping a close eye on how the market unfolds in the months ahead.”

Wrapping Up

Outperforming Britain’s housing market, London’s luxury houses are seeing substantial growth this year.

Categories
Financial Market Lifestyle Real Estate U.K U.S

Dubai Remains One of the Most ‘Affordable’ Luxury Home Destinations in the World

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According to the Financial Express, Dubai continues to remain one of the world’s most ‘affordable’ luxury residential markets, with most prime residences transacting for an average $870/sq. ft. USD.

The ‘affordable’ price per square foot in most prime residential neighbourhoods—combined with Dubai’s safety, excellent climate, and unrivalled sun-sea-sand lifestyle—is helping the city cement its iconic status in the luxury property market, thus fuelling the demand.

How Dubai Is Considered an ‘Affordable’ Luxury Home Destination

According to the Dubai Residential Market Review Winter 2022-23, a report published by Knight Frank, the majority of submarkets in Dubai exhibit a house-price-to-income ratio of less than six times yearly income. 

Whereas, as a rule of thumb, a house is considered affordable when its price is around six times the gross income of a household.

The quarterly report, which analyses Dubai’s real estate market and sheds light on key trends and forecasts, also published average house prices vs. average annual income by neighbourhood to help readers understand how accessible the mainstream residential market is.

Based on this report and other factors, the Financial Express has determined that the majority of Dubai real estate is relatively affordable.

The only outliers are three exclusive areas—Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island—with house prices costing more than 20 times the average yearly income.

What’s Driving Demand for Dubai’s Luxury Homes?

Dubai’s luxury home sale boom continues as millionaires flock to the Emirates in search of second addresses in the city’s most exclusive enclaves. 

“The meteoric rise of Dubai’s multi-million-dollar homes market over the course of the last two years has been phenomenal. The performance at the top of the market clearly demonstrates the arrival of Dubai as a luxury hub to rival long-established markets elsewhere, with no sign to suggest a slowdown in the seemingly relentless demand from global ultra-high-net-worth-individuals zeroing in on the emirate in search of second homes,” explained Faisal Durrani, Partner, the Head of Middle East Research at Knight Frank.

A study by Henley & Partners predicted that 2023 would see a massive influx of elites and millionaires settling down in the Emirates, with more and more countries now easing travel and quarantine restrictions. 

Case in point: The number of millionaires migrating to the UAE in 2022 was over 4000, which was more than the number of millionaires settling down in the UK, the USA, Australia, Switzerland, etc.

The result: 219 sales of homes worth over $10 million were recorded in 2022, compared to 93 in 2021—a jump of a staggering 135%.

High-net-worth individuals and the richest international buyers are vying for luxury properties in the three neighbourhoods of Dubai, despite the soaring prices. 

However, the demand for properties has slumped in other cities.

Despite a surge of 49.4% in property price in 2022, Palm Jumeirah remains Dubai’s star performer, making record-high sales of villas and luxury apartments.

Palm’s world-class amenities, private beach access, glittering waterfront views, and tranquil settings has made it top the ultra-high-net-worth customers’ list.

Luxury Interior Design in Dubai

With contemporary designs dominating the Dubai luxury market now, high-end interior design studios are introducing new design styles and ideas to transform exclusive spaces into exquisite residences.

Bringing out the best of both worlds—interior design and architecture—a class-leading interior design studio like Accouter aims to embody the true spirit of design excellence.

Wrapping up

Despite all the challenges posed by global inflation and the shortage of new supply compared to demand, Dubai’s luxury residential market remains affordable and buoyant, showing no signs of slowing down.

Categories
Personal Finance Real Estate Stock Market News U.K

UK House Prices Will Continue to Plunge in 2023

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The real estate market in the UK started on a high last year, continuing a period of fast expansion that began early in the COVID-19 pandemic, thanks to low-interest, “race for space” rates and stamp duty land tax cuts throughout lockdowns. 

But the mood changed drastically in the second half of 2022, making buyers reevaluate their moving plans. 

What a difference a year has made! 

According to a report published in City Monitor, UK house prices are forecasted to continue plunging this year after a record-high fall of 2.3% in November 2022. Analysts unanimously agreed that 2023 is set to face the biggest slump in property prices since the onset of the financial crisis in 2008. 

“Although a housing market downturn was widely expected by economists (including us), the monthly drop in the December survey far exceeds our and consensus’ expectation,” said Kallum Pickering, the chief UK economist at Berenberg.

Reasons behind the recent drop in house price in the UK

The increasing cost of living and the rising inflation rate looming over the UK are two key factors contributing to the rapid cooling in buyer demand and sales activities.

City Monitor marks the recent hike in mortgage rates as another leading player that caused sales to slip to a 12-year low.

The result: the UK property market is anticipated to fall staggeringly in 2023.

Research is frequently being conducted on the extent and impact of this decline in house prices. Case in point: The Nationwide Building Society projects a 5% fall in price that can be as high as 30% in the worst case scenario. Oxford Economics and Capital Economics forecast this drop to be around 12%. On the other hand, Halifax predicts a decline of 8% in house prices in 2023. 

Impact of drop in house price in the UK

The recent decline in house prices will affect people planning to relocate. The reason: sellers may not put their properties on to the market for sale, finding it less profitable.

In addition, if the current hike in interest rate shows no signs of dropping, a huge percentage of people will have to shift from fixed-rate mortgages to new higher rates. More and more property owners will end up selling their houses if they fail to afford the inflated mortgage rates.

That said, the current housing market downturn has benefits and drawbacks as well. While first-time buyers will find and purchase property at a more reasonable price, homeowners will face substantial losses or even negative equity while selling their properties.

The role of high interest rate in the house price drop

In an effort to check the current inflation, the Bank of England increased the UK base rate by 0.5 percentage points to 3.5% in December 2022—the highest in the past 14 years.

However, an increase in the interest rate doesn’t necessarily result in decreased house prices. But if the rate stays high for a long time, it can make property prices fall sharply. 

The reason: persistently high interest rate makes people less interested in borrowing which negatively impacts the property market. 

London’s luxury houses are defying UK’s home sales slowdown

Even though the UK’s property market is witnessing abrupt changes this year, it’s still not playing out in London’s luxury property market.

“In 2022, sales of £5 million plus homes, which account for just 8 percent of the prime London housing market, were 63 percent higher than their pre-pandemic average,” said Anthony Payne, managing director at LonRes. “It’s not surprising, therefore, that it tempted would-be sellers to put their homes onto the market.”

With London’s expensive and luxury homes defying the current slowdown in the UK’s property market, real estate agents are expecting a ‘burst of activity’ this year in London.

In addition, the weakness in the pound against the dollar is luring more international customers to London’s luxury properties.

For example, being superbly connected to Central London, Blackfriars and Marylebone have become two of the most sought-after places to settle down. 

In such a case, a high-end luxury real estate company can help buyers, sellers, tenants, and landlords make the most profitable deal. 

A top-tier real estate agent has extensive market knowledge, professional networks, and excellent negotiating skills. They can efficiently find the property worth selling, purchasing, or even renting for their potential clients. For example, while a real estate agent ensures efficient property valuation on behalf of a seller, they help buyers figure out the best-asking price. 

Regardless of the transaction taking place, a high-end real estate service always considers their clients’ interest and offers the best services, locations and connections when it comes to selling luxury properties in the neighbourhood areas of London.

Wrapping up

The hike in mortgage and interest rates had a knock-on effect on home sales and demand. Even worse, the UK base rate is projected to increase further and peak at 4.25% as the BoE looks to bring back down inflation. It will be the tenth time in a row for the bank to hike the interest rate since December 2022. However, as part of an effort to repair the damage, lenders have started lowering the mortgage rate even though the base rate is going up.

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Home & Garden Professional Services Real Estate U.K World

Accouter Announces Residential Interior Design Services in Dubai

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Leading luxury interior design studio, Accouter, has brought its bespoke residential interior design services to clients in Dubai.

“Accouter strives to achieve the impossible, to exceed the expectations of luxury design for all those who appreciate it,” explains a spokesperson from Accouter. “We sit aside those who have created a benchmark for luxury living, including trendsetters, tastemakers, and industry leaders.”

Renowned in the luxury interior design industry for offering second-to-none design services, Accouter is committed to helping its clients bring their dream homes to life.

Accouter is a team of hand-picked interior designers, architects, and artisans who take pride in ensuring each project they take on is personable and seamless.

As part of its effort to set a higher standard in the world of interior design, the experts at Accouter are always on hand to turn exclusive spaces into exquisite residences.

Accouter’s residential interior design service in Dubai is a five-stage process that includes a) concept creation, b) interior architecture, c) interior design, d) art acquisition, and e) project management.

The experts at the studio start each project with a conversation with the client to ensure the final outcome closely meets their expectations. 

When it comes to interior architecture, the expert architects at Accouter ensure no constraints can hold their customers back. Through creative exploration, the designers can artistically manipulate an existing residence and turn it into a bespoke and timeless environment. 

Accouter’s team of global designers is always on-hand to find the right pieces for a client’s space that can uphold the uniqueness of their luxury lifestyles. 

Collaborating with its network of global artisans, the experts at Accouter curate a client’s residential space carefully to ensure their functional and stylistic needs are best met.

In addition, by working closely with international galleries, the studio’s team of art connoisseurs procures the most suitable art pieces for a client’s Dubai residence. On top of that, they offer expert recommendations on major art commissions and investments. 

Taking a fully customisable and holistic approach to project management, this multi-award-winning interior design studio allows customers to focus on the things that matter the most.

As a member of Walpole and part of the Accouter Group of Companies (ACG) designs collective, Accouter is committed to creating bespoke interiors and FF&E with sustained excellence. 

The company aims to help the British luxury industry lower its carbon footprint for a more sustainable future.

Founded in 2012, Accouter is a British Institute of Interior Design (BIID) registered interior design company and closely follows the Royal Institute of British Architects (RIBA) stages of practice.

Interested parties can learn more about Accouter’s luxury residential interior design in Dubai by visiting https://accouterdesign.com/.