High-net-worth individuals from all over the world are expected to invest more than Dh16 billion ($4.4 billion) in Dubai’s real estate market by 2024, as the emirate emerges as the most popular destination for investors.
According to global real estate consultancy Knight Frank, HNWIs’ investment appetite drives them to Abu Dhabi and Sharjah following Dubai.
The Dubai property market has been on the radar of high-net-worth individuals or millionaires in the post-pandemic period due to very high returns at low prices, world-class infrastructure, safety and security, and the country’s growing overall economy. The emirate’s property market has surpassed 2014’s peaks, with both prices and rentals reaching new highs.
According to the report, thousands of millionaires from Africa, the United Kingdom, Asia, and other regions have chosen to live in Dubai in recent years. According to the most recent Henley & Partners data, Dubai has 72,500 millionaires with $1 million or more in wealth, 212 centi-millionaires with homes worth $100 million or more, and 15 billionaires.
“Dubai remains the number one destination for the global HNWI community. Not only has the city cemented its status as the busiest $10million-plus home sales market in the world, but millionaires continue to clamour for the ‘Dubai life’ and property at the upper echelons of the price spectrum in the emirate is a hotly contested commodity. This is best evidenced by the fact that the desire to own a home in the city jumps from 28 per cent for those with a net worth of $2-5 million to 78 per cent for those with a net worth in excess of $15 million,” said Faisal Durrani, partner and head of research for Mena at Knight Frank.
He went on to say that the average budget for ultra-high-net-worth individuals looking to buy real estate in Dubai is truly remarkable. A staggering 25% are willing to spend between $60 and $80 million on a city home, while another 16% want to spend more than $80 million. Meanwhile, the average budget for this exclusive cohort is $58.5 million, demonstrating the market’s immense potential.
According to Knight Frank and Reidin, approximately 105 homes worth $10 million were sold in the first quarter, primarily in Palm Jumeirah, Palm Jebel Ali, Business Bay, Al Wasl, and Jumeirah Bay Islands. Meanwhile, 12 homes valued at more than $25 million were sold between January and March.
According to Ramjee Iyer, chairman and managing director of Acube Developments, as Dubai attracts new residents, there is a growing demand for properties with value-added features such as better amenities, fully furnished or partially furnished units, and more spacious dwellings.
“As the market shifts in this direction, developers need to react and deliver on these needs. Dubai’s attractiveness as a safe, happy, and business-oriented city has been noticed over the past two years, and this, in turn, puts upward pressure on rental prices. As more units become available this year and next, we should see a natural stabilisation of rental prices occur.”
Emad Saleh, founder and chairman of Amwaj Development, said there is a growing demand for open green spaces within the community, more entertainment and lifestyle amenities, and an environment where kids can play safely. “These are key decision-making factors when new buyers are choosing a place to call home,” said Saleh.
