After showing impressive resilience in the wake of the global pandemic, the UAE’s real estate sector looks set for continued growth. As I mentioned earlier this year, property prices across our nation are likely to see further increases in 2023 as the market continues to adapt to high demand.

We have already witnessed signs of this trend, especially in Dubai where sustained market growth is expected to support cash flow, steady profitability and improving credit metrics, according to analysts from S&P Global Ratings.

Premium real estate segments appear to be mirroring this success, with a total of 219 homes valued at more than $10 million sold in 2022. This makes Dubai the fourth most-active city in the world for ultra-luxury property sales, with only New York, Los Angeles and London witnessing more sales in this space during the past year.

Such figures spell good news for those investing in the UAE’s property sector across the board. Nevertheless, I feel there is one particular segment in which Dubai outshines its international rivals – even Los Angeles…

Let’s go to the beach!

Beachfront properties are not limited to Dubai. Technically speaking, similar premises can be found in most coastal locations around the world. Nevertheless, our city – and the UAE in general – is home to some of the most sought-after luxury beachfront homes on the planet.

Properties located along the idyllic white-sand beaches that populate the UAE’s coast are not only appealing places to live; they are also attractive long-term investments. With serene views of both glittering cityscapes and the Arabian Gulf, excellent international transport links and proximity to bustling metropolises, it’s little wonder that developers are struggling to meet ever-increasing demand among buyers.

Premium beachfront living has long since been viewed as a solid investment, but is now the right time to consider adding these assets to your portfolio.

A healthy pipeline

Well, there are certainly plenty of opportunities to do so. DAMAC Properties, for instance, is making significant progress with beachfront projects both here in the UAE and overseas.

DAMAC Lagoons, for instance, is extending beachfront living away from Dubai’s coast. Located in DAMAC Hills, this master-planned development will offer its own beaches and waterfront properties. The community will also be home to a broad selection of water-based activities, including snorkelling, sailing, fishing and much more. At the same time, DAMAC Lagoons is a sustainable project that is being constructed in line with international best standards, demonstrating that luxury beachfront living doesn’t have to cost the earth.

Outside the UAE, DAMAC Properties has joined forces with Mandarin Oriental to develop Mandarin Oriental Bolidhuffaru Reef in the Maldives. Scheduled to open in 2025, this island resort will boast a total of 120 luxury villas spread across 34 hectares. More than half of these premises will be constructed over water, while 56 will be located on the beach.

And these are just two examples specific to DAMAC Properties. On a broader level, the market is witnessing a significant uptick in beachfront developments as suppliers look to capitalise on demand for these sought-after investment opportunities.

Is now the right time to invest?

Ultimately, the right time to invest in beachfront property will depend on your personal circumstances. Is this a gap in your portfolio? Can you raise sufficient capital? These are all factors that individuals should consider before making a decision.

That said, speaking more generally, current market conditions certainly suggest that it is a *good *time to invest in these assets. According to real estate agency Unique Properties, beachfront destinations are likely to represent a major growth driver for the UAE’s prime real estate sector in 2023, and there are no signs that this trend will abate over the coming years. Five of DAMAC Lagoons’ eight clusters, for example, have already sold out, and our industry is witnessing similar levels of demand among other beachfront developments.

Ultimately, the UAE’s beaches are going nowhere, and as DAMAC Lagoons demonstrates, properties don’t even have to be situated on the coast to deliver this lifestyle. Current levels of supply are certainly robust, but so too is demand.

So, if you’re underinvested in this segment and you have the financial means at your disposal, now might be an ideal time to consider expanding your portfolio with a beachfront investment.