Consumer interest seen as growing confidence in property sector
DAMAC Properties, one of the Middle East's leading international real estate investment companies, has today announced that interest in the company's luxury property segment is at its highest level in two years.
Compared to the same time last year, DAMAC has seen an increase of double digit per cent in consumer interest in its high end luxury properties. The increase has been reflected across most of DAMAC's key Middle East markets and is being seen as a key indicator that the region's property sector is finally starting to recover from the global recession.
Niall McLoughlin, Senior Vice President of Damac Properties says, "Throughout 2010 and into 2011 interest in our high end luxury properties, such as the award winning Damac Tower with interiors by Versace Home in Beirut and Ocean Heights in Dubai has seen increased levels of enquiries.
"When the global recession hit, there was a marked slowdown in property sales in general; however, it would appear that demand for our high end luxury properties is on the way back. Across the region we are witnessing a significant increase in the number of customers looking for a luxurious new home or astute property investment."
DAMAC's findings would appear to be reflected across the globe as other markets also show that the demand for high end luxury properties is as popular as ever. One of the most significant developments is the recent launch of One Hyde Park in London, thought to be the most expensive residential blocks in the world. Despite prices starting at £6.5m (US$10.5million) for a simple onebedroom flat and soaring to £140m (US$225 million) for one a penthouse, interest in the 86 flat development has been enormous.
In Singapore, a bungalow in the city's prime residential district 10 recently sold for a record S$61.4 million (US$47.6 million) and in 2010, more than S$2 billion (US$1.55 billion) worth of property was sold in District 10 - more than 30 of the nearly 300 transactions involved properties costing at least S$20 million (US$15.5 million).
In Hong Kong, a recent report by city's Inland Revenue Department revealed that property transactions valued at more than $20 million grew 86 per cent from April 2010. And, according to the ‘Survey of Affluence and Wealth in America' luxury spending in 2011 would rebound for the first time in three years. Luxury spending by the wealthy has increased $28 billion.
"The growing demand for luxury property is extremely encouraging; not only in terms of DAMAC but also for the wider property sector, as it is a clear sign that consumer confidence is beginning to return. I believe that the activity at the top end of the market will have a knock on effect, on the wider property market, which in turn will have a positive impact on the wider economy."
DAMAC currently has over 12,000 units under construction across the Middle East region. Properties such as the Ocean Heights tower in Dubai Marina, and the Versace Tower in Lebanon have redefined the luxury real estate sector, providing opulent finishes, spectacular views and spacious floor plans.