High-net-worth individuals from around the world are expected to invest more than Dh16 billion ($4.4 billion) in Dubai's property market in 2024, as the emirate emerges as the most preferred destination for investors.
According to global real estate consultancy Knight Frank, HNWI's investment appetite draws them to Abu Dhabi and Sharjah after Dubai. The post-pandemic period has seen Dubai's property market become increasingly attractive to high-net-worth individuals and millionaires due to its ability to offer high returns despite low prices, excellent infrastructure, safety and security, and a growing overall economy of the country. Furthermore, both property prices and rentals in the emirate have surpassed the previous peaks of 2014 and reached new highs.
Khaleej Times reports that thousands of millionaires from Africa, the UK, Asia, and other regions have chosen Dubai as their new home in recent years. Henley & Partners' latest data shows that Dubai is currently home to 72,500 millionaires with wealth exceeding $1 million, 212 centi-millionaires with homes valued at over $100 million, and 15 billionaires.
Faisal Durrani, partner and head of research for Mena at Knight Frank, states, "Dubai remains the number one destination for the global HNWI community. Not only has the city cemented its status as the busiest $10 million-plus home sales market in the world, but millionaires continue to be attracted to the 'Dubai life' and the high-end properties in the emirate are in high demand. For those with a net worth of $2-5 million, the desire to own a home in the city is 28 percent, while it jumps to 78 percent for those with a net worth exceeding $15 million."
What's even more striking is the average budget of ultra-high-net-worth individuals looking to purchase a property in Dubai. A remarkable 25 percent are willing to spend between $60-80 million on a home, while another 16 percent would spend over $80 million. The average budget for this exclusive group is $58.5 million, showcasing the immense potential of the Dubai market.
Knight Frank and Reidin report that in the first quarter, around 105 homes valued at $10 million or more were sold, primarily in Palm Jumeirah, Palm Jebel Ali, Business Bay, Al Wasl, and Jumeirah Bay Island. Additionally, 12 homes exceeding $25 million in value were sold from January to March.
As Dubai continues to attract new residents, there is a growing demand for properties that offer value-added features such as better amenities, fully or partially furnished units, and more spacious dwellings, according to Ramjee Iyer, chairman and managing director of Acube Developments. Emad Salah, founder and chairman of Amwaj Development, also emphasizes the need for open green spaces, diverse entertainment and lifestyle amenities, and a safe environment for children to play when choosing a place to call home.
