High-net-worth individuals from around the globe are anticipated to invest over Dh16 billion ($4.4 billion) in Dubai’s real estate market by 2024, as the emirate becomes the most popular destination for investors.
According to global real estate consultancy Knight Frank, HNWIs’ investment interest is also driving them to Abu Dhabi and Sharjah after Dubai.
Post-pandemic, Dubai’s property market has attracted high-net-worth individuals and millionaires due to very high returns at low prices, world-class infrastructure, safety and security, and the country’s growing economy. The emirate’s property market has exceeded the peaks of 2014, with both prices and rentals reaching new heights.
The report states that thousands of millionaires from Africa, the United Kingdom, Asia, and other regions have chosen to reside in Dubai in recent years. The latest data from Henley & Partners reveals that Dubai is home to 72,500 millionaires with $1 million or more in wealth, 212 centi-millionaires with homes valued at $100 million or more, and 15 billionaires.
“Dubai remains the top destination for the global HNWI community. The city has not only solidified its status as the busiest market for homes priced at $10 million and above but also continues to attract millionaires eager for the ‘Dubai life.’ Properties at the upper end of the price spectrum in the emirate are highly sought after. This is 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 exceeding $15 million,” said Faisal Durrani, partner and head of research for MENA at Knight Frank.
He also mentioned that the average budget for ultra-high-net-worth individuals looking to purchase real estate in Dubai is astonishing. A significant 25% are willing to spend between $60 and $80 million on a city home, while another 16% aim to spend more than $80 million. The average budget for this exclusive group 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, mainly in Palm Jumeirah, Palm Jebel Ali, Business Bay, Al Wasl, and Jumeirah Bay Islands. Additionally, 12 homes valued at over $25 million were sold between January and March.
Ramjee Iyer, chairman and managing director of Acube Developments, noted that as Dubai attracts new residents, the demand for properties with enhanced features such as better amenities, fully or partially furnished units, and more spacious dwellings is growing.
“As the market moves in this direction, developers need to respond and meet these demands. Dubai’s reputation as a safe, happy, and business-friendly city has been recognized over the past two years, which has increased pressure on rental prices. With more units becoming available this year and next, we should see a natural stabilization of rental prices,” said Iyer.
Emad Saleh, founder and chairman of Amwaj Development, highlighted the increasing demand for open green spaces, more entertainment and lifestyle amenities, and safe environments for children within communities. “These are crucial factors for new buyers when choosing a place to call home,” said Saleh.
