Dubai real estate market continues to captivate high-net-worth individuals (HNWIs) worldwide, with a staggering $4.4 billion expected to be spent on residential properties in 2024. This surge further proves that Dubai is a premier destination for luxury real estate, driven by its exceptional infrastructure, economic prosperity, and unique lifestyle.
Let’s examine what this means for you as an individual and how you can explore the benefits of this thriving market.
What Attracts Global HNWIs to Dubai?
According to Knight Frank’s 2024 Destination Dubai report, Dubai is the top choice for HNWIs looking to invest in real estate. The report, which surveyed 317 HNWIs with a collective net worth of $5.4 billion, sets Dubai as dominant in the luxury home market. Faisal Durrani, Partner and Head of Research, MENA at Knight Frank, noted, “Dubai remains the number one destination for the global HNWI community. The city has cemented its status as the busiest $10 million+ home sales market in the world, and HNWIs continue to clamor for the ‘Dubai life.’”
Abu Dhabi ranks second, while Sharjah has secured third place among the preferred emirates for real estate investment. The city’s transformation into a global commerce hub, coupled with significant investments in infrastructure and a focus on social mobility, has made it an attractive location for various investors.
Factors Driving HNWI Real Estate Demand in Dubai
Several factors contribute to the high demand for luxury real estate in Dubai. The city’s high-quality infrastructure is a significant draw, ranking as the number one factor for HNWIs surveyed by Knight Frank. Dubai’s infrastructure quality was rated fourth globally in the World Economic Forum’s 2023 competitiveness report. Additionally, the city’s focus on personal well-being and public safety enhances its appeal.
Access to green spaces and parks is another top consideration for HNWIs purchasing property in Dubai. According to Knight Frank, 88% of HNWIs view proximity to green spaces as a critical factor. The growing global emphasis on personal well-being is also reflected in the desire for homes near clinics or hospitals, which is ranked as the second most important criterion, followed by access to the beach.
Market Dynamics and Future Outlook
Dubai’s real estate market is experiencing unprecedented growth, driven by high demand and limited supply. In 2023, the market saw nearly 120,000 residential transactions worth around $95 billion. Although $10 million+ in home sales represented only 8% of the total value, they significantly influenced overall market trends.
The average budget for ultra-high-net-worth individuals considering a property purchase in Dubai is $58.5 million, with 25% willing to spend between $60 and $80 million on a single home. Despite high demand, the market is falling short of supply, particularly in prime areas, which continue to drive sharp price increases.
Developers are responding with new projects to meet the growing demand. For instance, Emaar Properties recently launched a $15 billion development near Al Maktoum International Airport, featuring townhouses and semi-attached villas with extensive amenities. However, many HNWIs prefer completed or newly built properties, reflecting a reluctance to wait for off-plan developments.
Dubai’s Position as a Global Wealth Magnet
Dubai’s attractiveness extends beyond its real estate offerings. The UAE has become a top destination for millionaire migration, with 4,000 HNWIs expected to move to the country by the end of the year. This trend is supported by government initiatives such as residency permits for retirees and remote workers and the expansion of the 10-year golden visa program.
Dubai’s luxury prime market performed exceptionally well in 2023, with sales of $10 million+ homes nearly doubling to $7.6 billion, outpacing cities like London and New York. The number of high-net-worth individuals in Dubai is projected to increase by 52% over the next decade, solidifying its status as a hub for the global elite.
If you’re willing to get your share of the growth of the Dubai real estate market, contact Glidai Properties today. We’re here to help you find a home that matches your needs and can be a great investment in your future.