Dubai’s luxury property market has been experiencing a remarkable boom, establishing itself as a global leader in high-end real estate. In 2023 alone, the emirate saw 431 sales surpassing AED 36.5 million, outstripping the luxury markets of London and New York. Notably, Palm Jumeirah registered 21 such deals this year, highlighting its appeal among affluent buyers.
The trend continued into 2024, with the first quarter recording 105 sales of homes priced above $10 million, a 19% increase from the same period last year. This surge in ultra-luxury transactions is driven by the influx of wealthy individuals into Dubai, with over 6,700 high-net-worth individuals (HNWIs) with liquid assets of $1 million or more relocating to the city. These new residents primarily hail from India, Russia, and Africa, contributing to Dubai's status as the Middle East's wealthiest city, with a millionaire population of 72,500 and ranking 21st globally.
According to Henley & Partners, Dubai has seen a 78% growth in its millionaire population over the past decade. The city is now home to 212 centi-millionaires (individuals with a net worth of $100 million or more) and 15 billionaires, underscoring its growing appeal as a global hub for the wealthy.
A significant aspect of Dubai’s luxury market is the prominence of branded residences. These properties, often associated with renowned brands, typically command a price premium of 25-35% over non-branded residences of similar quality. Current projects include the Armani Beach Residence at Palm Jumeirah, Cavalli Casa Tower at Dubai Marina, Mercedes-Benz Places in Downtown, Bugatti Residence at Business Bay, and Bulgari Lighthouse at Jumeirah Bay. Prices for these branded residences range between AED 5,000 and 12,000 per square foot.
The market for branded residences is set to double in the next five years, with over 4,600 units expected to be delivered. Currently, there are 51 branded residence projects, with an additional 70 projects planned by 2028. The majority of these new developments will be located in prime areas such as Downtown Dubai, Business Bay, Dubai Marina, and JBR.
The robust growth of Dubai’s luxury property market is further evidenced by the expected expenditure of $4.4 billion by global HNWIs on Dubai real estate this year, a 76% increase from last year. This surge is driven by strong investor demand, favorable economic conditions, and policies that encourage long-term residency.
In conclusion, Dubai’s luxury property market is on a sharp growth trajectory, fueled by an influx of wealthy individuals, a robust demand for branded residences, and supportive economic policies. The city’s strategic initiatives and its appeal as a global luxury destination continue to solidify its position as a leading market for high-end real estate. Get to know more about the Dubai’s luxury property market, visit fäm Properties.