Unique Properties, one of Dubai’s real estate agencies, cites that Dubai is closing in on becoming the most sought-after market for luxury properties in the world.
The emirate ranked first on the Prime International Residential Index (PIRI 100) of property consultancy Knight Frank for the second consecutive year. Dubai registered a 44.2% price increase in its luxury residential segment last year, the highest price surge globally.
Dubai transacted 219 luxury property sales valued at $10 million and upwards in 2022 to reach an estimated total of $3.8 billion, yet, investors remain unphased. This momentum is expected to continue throughout 2023. After an ultra-luxury apartment sold for Dhs410 million, and a prime villa sold for Dhs600 million last year, the second week of this month saw noteworthy transactions of its own with an apartment and a villa selling for Dhs65 million each.
Dubai real estate market
Interest in high-end areas such as The Palm, Emirates Hills, and Jumeirah has seen Dubai also rank as the fifth most active city for property sales worth $25 million or more, with 26 transactions logged in 2022.
The government’s meticulous handling of the pandemic and its liberal visa policies have successfully attracted more foreign buyers, translating to a significant increase in both Dubai’s real estate prices and sales transactions.
This progress exemplifies a strong and growing demand for ultra-luxury property in the UAE, especially when considering the influx of European investors who are increasingly looking to the country as a safe haven to protect their finances amidst ongoing global turmoil.
Developers are accordingly launching new projects to meet the market’s expectations as recent reports suggest that affluent buyers are absorbing the existing supply at an unprecedented level.
Arash Jalili, Founder and Chief Executive Officer of Unique Properties, commented: “Despite global economic instability, experts expect Dubai’s real estate sector to remain stable throughout the year. Rising interest rates, inflation, and the devaluation of emerging currencies may cool the demand for residential real estate on a global level but the UAE’s real estate market has the best chance of being an outlier. This is particularly true when taking into account the UAE’s forecasted population growth of between 3-4%, and the wise leadership’s forward-thinking initiatives which prioritize economic growth and the best interests of the country’s residents and citizens.”
Dubai’s ultra-luxury property market is a relatively new real estate segment within the country. An inflow of high-net-worth investors is accelerating the growth of the emirate’s prime property segment and some experts predict that the market may exceed transactions worth $35 billion as soon as this year.