Dubai saw an influx in property acquisition by HNWIs

As real estate consultancy experts say, so far this year, the Dubai property market has seen 142 luxe units sold at a minimum of AED 36.7M (USD 10M) each, as high net-worth individuals (HNWIs) come to Dubai en masse.

It has been estimated that global HNWIs have approximately AED 9.18B (USD 2.5B) available to spend in Dubai this year, down from nearly AED 14B (USD 4B) last year.

Values for prime residential property have increased by over 50% in the last year, which is the highest for a premium real estate market in the world and testifies to its investment appeal. The wealthy are buying up prime beachfront villas and luxury homes in the most preferred areas, such as Downtown and Palm Jumeirah – 37% and 30%, respectively. HNWIs from the UK, Europe and North America prefer acquiring property in Palm Jumeirah and Emirates Hills, while East Asians choose Downtown and Business Bay.

This current investment environment is of particular interest as a majority (66%) of buyers are specifically looking to purchase second homes and private holiday homes, a major contrast from earlier periods when investors were more focused on flipping property.

It is believed that the emirate is benefiting greatly from its strong response during the pandemic, which can be seen in the sky-high growth rates of Palm Jumeirah and Downtown since Q1 2022, at 25% and 15%, respectively, and notably stable demand for villas.

Dubai has now attained fourth place in the worldwide luxury home sale active market, with expected growth to continue, but at a slightly slower pace.