Image: Dubai Media Office
Dubai has long been synonymous with luxury living, but its appeal as a haven for the ultra-rich from around the globe has reached new heights in recent years.
As the UAE’s economic and real estate landscape evolves, the city is increasingly recognised as a premier destination for high-net-worth individuals (HNWIs) seeking exclusive, opulent properties.
Reports suggest that by the end of 2024, 6,700 millionaires are expected to relocate to the country, making it the top global destination for high-net-worth individuals, nearly doubling the number moving to the US.
Why Dubai?
Several factors contribute to Dubai’s allure for the ultra-wealthy. Its strategic location at the crossroads of Europe, Asia, and Africa positions it as a global hub for business and travel, supported by its top-tier airports, Dubai International (DXB) and Al Maktoum International (DWC), which enhance connectivity.
Another significant draw is Dubai’s tax-free environment. The absence of income and wealth taxes, coupled with favourable corporate tax policies, allows the wealthy to preserve their fortunes and invest in luxury real estate.
Beyond the luxury and wealth, Dubai offers a safe, stable environment with a high standard of living. Its advanced healthcare, education, and security services make it an ideal choice for those seeking a secure and comfortable lifestyle.
Luxury central
Dubai’s luxury real estate market is renowned for its extravagant offerings, ranging from private island villas to penthouses in iconic skyscrapers.
Recent developments like the Armani Residences on Palm Jumeirah, Elysian Mansions in Tilal Al Ghaf, and properties in Emaar’s The Oasis exemplify high-end living, featuring bespoke amenities that attract affluent investors.
Property platforms in the UAE have observed key trends within this niche sector. Offering an insider’s perspective, Fibha Ahmed, VP of Property Sales at Bayut notes, “What sets Dubai apart is its ability to provide not just luxury homes, but an entire lifestyle. From private chauffeurs to personalised luxury experiences, the city caters to the specific needs of this exclusive clientele.”
Wealth migration and investment surge
The expected influx of millionaires to UAE in the coming months has dramatically boosted demand for luxury properties, particularly those priced at Dhs10m and above. From January to August 2024, Bayut has recorded over 1.8 million detailed page views for high-end homes, signalling unprecedented interest in Dubai’s luxury market.
“Demand for properties over Dhs10m is stronger than ever, with areas like Jumeirah Island, Arabian Ranches, Downtown, Jumeirah Golf Estates, and Tilal Al Ghaf seeing the highest interest in the first eight months of the year,” explains Ahmed. “What’s even more surprising is the 62 per cent increase in high-end property transactions compared to the same period last year, particularly during the summer months.”
Further data from Bayut reveals that 70 per cent of these transactions in the first eight months of the year were for off-plan properties, reflecting buyers’ eager interest to invest in future developments.
These high-value homes, set to be ready in the next three to four years, are fuelling optimism for Dubai’s luxury real estate market.
Read: UAE real estate market poised for strong growth in Q4: JLL
Shifting property preferences
Bayut’s insights indicate a 62 per cent increase in transaction volume year-over-year, with 710 luxury property transactions in 2024, compared to 430 during the same period in 2023.
While average transaction prices were higher last year, the volume of transactions has significantly increased this year. For instance, 62 per cent of transactions in 2024 are for villas, with an average price of Dhs30m, compared to 63 per cent for apartments in 2023 at an average price of Dhs41m.
This shift from apartments to villas indicates a preference for more spacious, high-end living, particularly in exclusive, family-friendly communities. “The appetite for both high-end apartments and villas remains strong, and we’re seeing more luxury-focused brokerages establishing dedicated divisions to cater to this niche clientele,” notes Ahmed.
Ben Thomas, head of secondary, AX Capital, said: “At AX Capital, we specialise in addressing the sophisticated needs of our VIP clients within Dubai’s luxury real estate market. We offer a range of bespoke services, including private chauffeured transportation, exclusive access to off-market listings, and discreet transaction management from our luxurious offices. Our dedicated team leverages their extensive expertise and robust industry connections to secure exceptional opportunities for our clients.
“Looking ahead to Q4 2024 and Q1 2025, we anticipate sustained demand for luxury properties, driven by high-net-worth individuals attracted to Dubai’s unique lifestyle and favourable tax benefits. Additionally, we foresee potential price growth in premium segments due to limited supply. We also expect foreign investment, particularly from Europe and Asia, to remain strong, with an increasing demand for developments featuring exclusive cultural, leisure, and wellness amenities.
Luke Remington, MD of haus&haus Real Estate, said: “For ultra-wealthy clients, we offer exclusive access to off-market listings and have deep conversations on ways to spread funds across a portfolio to get market longevity and the highest possible returns. Associate Directors act as guides, often taking them with a driver in a luxury car to private viewings and assisting them along the whole process”.
He added: “We anticipate continued growth in the luxury real estate market through Q4 2024 and Q1 2025, due to Dubai’s appeal as a haven and exciting new infrastructure developments. Plus, with challenging budget announcements across the UK and Europe, Dubai will look even more appealing to HNWI’s.”
Bright future ahead
“As Dubai continues to attract high-net-worth families and global elites, the city’s influence on the world stage is only set to grow,” concludes Ahmed, “With strategic initiatives like the Dubai Economic Agenda D33 and policies such as the Golden Visa program, Dubai is not just maintaining but strengthening its position as a premier hub for luxury living and wealth migration.”
The UAE’s investment in smart city development, sustainability, and infrastructure further enhances its appeal, ensuring that Dubai remains a top destination for global investors and professionals seeking both stability and long-term investment opportunities.
