High-net-worth individuals are projected to invest more than Dh16 billion in Dubai’s property market in 2024 as Dubai emerges as a preferred destination for investors. According to Knight Frank, HNWI’s investment appetite also extends to Abu Dhabi and Sharjah. The Dubai property market has become attractive to millionaires in the post-pandemic period due to high returns, low prices, world-class infrastructure, safety, and security. Prices and rentals in Dubai have reached new highs, surpassing previous peaks in 2014.
Dubai has seen an influx of millionaires from Africa, the UK, Asia, and other regions in recent years. It is home to 72,500 millionaires with $1 million-plus wealth, 212 centi-millionaires with $100 million-plus homes, and 15 billionaires. Dubai remains the top destination for the global HNWI community, with millionaires showing interest in the ‘Dubai life’ and high-end properties in the emirate being highly coveted. The average budget for ultra-high-net-worth individuals considering a Dubai property purchase is $58.5 million, with some prepared to spend between $60-80 million.
105 homes with a value of $10 million were sold in the first quarter in areas like Palm Jumeirah, Palm Jebel Ali, Business Bay, Al Wasl, and Jumeirah Bay Island. Additionally, 12 homes valued at $25 million-plus were sold during January-March. Developers are catering to the increasing demand for properties with value-added features such as better amenities, fully or partially furnished units, and more spacious dwellings. The market in Dubai is shifting towards delivering on these needs, with a focus on creating safer and more attractive living environments.
As Dubai continues to attract new residents, there is an upward pressure on rental prices. Emad Salah, founder and chairman of Amwaj Development, highlighted the growing demand for open green spaces, entertainment facilities, and a safe environment for children. These factors play a crucial role in the decision-making process for new buyers looking for a place to call home. With the market evolving to meet the changing needs of residents, Dubai is set to see a natural stabilization of rental prices as more units become available in the coming years.
