Dubai’s luxury real estate market is still a hot spot for millionaires, who continue to invest in prime residential areas like Dubai Marina, Downtown, and Business Bay. According to a recent study by Knight Frank, millionaires from various countries such as the US, China, Canada, UK, and India are flocking to Dubai to take advantage of lower prices and high growth opportunities. The study also highlighted the top 15 places where millionaires are focusing their investments in Dubai, including Dubai South/Expo City, Dubai Canal, and Palm Jumeirah.
The market prices in Dubai’s prime residential sector have seen a significant increase of 18.2% in the first quarter of the year, with a projected 5% growth for the entire year. This growth rate is the third fastest globally, behind Auckland and Mumbai. Faisal Durrani, partner and head of research at Knight Frank, mentioned that the interest in investing in Dubai remains high among the uber-wealthy, with 56% looking to purchase completed or newly built units. This preference for ready-to-move-in properties has resulted in a decrease in the number of available units for sale.
Dubai continued to lead in the $10 million-plus property deals last year, surpassing cities like London and New York. The study also revealed that millionaires with substantial wealth are keen on investing in Dubai’s real estate market for personal reasons or as an investment. They prioritize properties located close to parks, green spaces, healthcare facilities, beaches, and malls. Durrani noted that Dubai’s property market has gone through two market cycles and is currently in its third cycle, which has been witnessing five years of price growth.
Even though there has been a slight slowdown in price growth compared to previous years, Durrani emphasized that it is not necessarily a negative sign. The market is expected to see a 3.5% increase in residential prices overall. While a decline or plateau in prices may occur in the future, there are no immediate indications of a significant slowdown. The demand for luxury properties in Dubai remains strong, especially among millionaires looking to capitalize on the city’s growing real estate market.
