The demand for uber-luxury properties in Dubai has soared to new heights, leading to record high rents in the city. In the first five months of 2024, 270 rental transactions were signed for properties with annual rents of Dh1 million or more. This surge in demand is attributed to the influx of high net-worth individuals, or millionaires, from around the globe who are choosing Dubai as their new home.
Prime locations such as Palm Jumeirah, Mohammad bin Rashid City, and Dubai Hills Estate are dominating the high-end rental market in Dubai. These areas are known for their upscale amenities and premium real estate offerings. Among the luxury rentals, 61% were villas and townhouses, reflecting a preference for spacious and private living environments. The remaining 39% were apartments, chosen for their prime locations and high-rise views.
The UAE is set to welcome over 6,700 millionaires this year, marking the highest number for the third consecutive year. This data, released in The Henley Private Wealth Migration Report 2024, indicates the appeal of Dubai as a destination for the wealthy. With 116,500 millionaires, 308 centi-millionaires, and 20 billionaires, Dubai’s real estate market is thriving as more affluent individuals choose to invest in properties in the city.
Dubai continues to be a preferred destination for real estate investments among global High Net-Worth Individuals (HNWI). According to the latest Destination Dubai report by Knight Frank, Dubai received 73% of the preference for real estate investments in 2024, up from 67% in 2023. The city’s safety, world-class lifestyle, and connectivity with other global cities are major attractions for wealthy investors.
Compared to other major global cities such as London, New York, Hong Kong, and Singapore, renting luxury properties in Dubai is more affordable. While the minimum annual rent for luxury properties in Dubai is around Dh500,000, it costs nearly Dh700,000 in London and New York, Dh1.17 million in Hong Kong, and Dh955,000 in Singapore. Despite the lower cost, luxury properties in Dubai offer larger living spaces, making them a desirable choice for affluent individuals.
In conclusion, the demand for uber-luxury properties in Dubai is at an all-time high, driven by the influx of millionaires relocating to the city. With prime locations, upscale amenities, and affordable rents compared to other global cities, Dubai’s real estate market continues to attract high-end investors. As the city’s appeal grows among wealthy individuals, Dubai is poised to maintain its position as a top destination for luxury real estate investments.
