LP.com

In the first five months of 2024, Dubai's luxury real estate market witnessed 948 transactions valued at AED 15 million (approximately USD 4 million) or more each. These high-value transactions were concentrated in key areas such as Jumeirah Palm Island, Mohammed Bin Rashid City, Dubai Canal, Tilal Al Ghaf, and Dubai Hills Estate, not only demonstrating impressive transaction numbers but also making a significant contribution to the total transaction value.

Among them, the MAG Ritz-Carlton apartments in Dubai Healthcare City recorded the highest single residential sale of AED 165.6 million this year, marking a milestone in Dubai's real estate history. Following closely are projects like Bulgari Residences in Jumeirah Bay and Fendi Casa Canal in Dubai Canal, showcasing the vibrant transactions in Dubai's luxury property market.

Louis Harding, Managing Director of Betterhomes, highlights that Dubai's independent luxury real estate market has seen significant momentum post-pandemic, largely due to the government's effective pandemic response measures. With continued population growth and demand, Dubai's property prices are expected to see moderate increases. The reasons behind this growth include Dubai's increasing attractiveness as a place to live and work, stable governance, limited supply of luxury homes, and various long-term residency initiatives. Crucially, compared to cities like London and New York, Dubai offers higher value for money in property investments.

Internet

In recent years, initiatives such as retirement visas for retirees and remote workers, as well as the expansion of the 10-year Golden Visa program by the UAE government, have injected strong momentum into the real estate market's robust development. Additionally, overall economic growth in the UAE has provided robust support for the property market. Reports from Knight Frank indicate that Dubai's prime residential market hit historic highs last year, with sales of homes priced above USD 10 million nearly doubling. The surge in global wealth creation has made Dubai the preferred destination for affluent individuals seeking asset diversification and security.

According to Henley & Partners' report, the UAE has welcomed a significant number of millionaires over the years, with Dubai becoming the most concentrated city for billionaires in the Middle East. Traditional wealth hub cities such as London, New York, Singapore, and Hong Kong face various challenges, whereas Dubai stands out for its high value proposition.

However, behind the prosperity lies challenges. Housing shortages have led to rising property prices, making it difficult for buyers to find properties with good investment value. Yet, Dubai is actively addressing supply challenges, with numerous luxury projects currently under construction. Simultaneously, there has been a significant increase in luxury property rental transactions, driven by a surge in tourists and transit passengers, prompting many landlords to actively renovate properties to meet market demands.