An estimated $4.4 billion will be invested in residential real estate in Dubai by wealthy individuals
Published Date: 24 Jul, 2024
An estimated $4.4 billion will be invested in residential real estate in Dubai by wealthy individuals
According to recent research, high-net-worth individuals (HNWIs) are willing to spend USD 4.4 billion on home property in Dubai.
Knight Frank's 2024 Destination Dubai report, which polled 317 high-net-worth individuals (HNWIs)—217 worldwide and 100 expat HNWIs headquartered in the GCC—reveals that the respondents own 1,147 houses worldwide and have a combined net worth of $5.4 billion.
Global HNWIs are drawn to Dubai
The research stated that Dubai has emerged as the top UAE emirate among HNWIs worldwide for real estate purchases.
It also stated, "Sharjah has taken third place this year, and Abu Dhabi is ranked second overall."
According to Faisal Durrani, partner and director of research for MENA at Knight Frank, Dubai continues to be the top travel destination for high-net-worth individuals worldwide.
In addition to solidifying the city's position as the busiest USD 10 million+ home sales market globally, HNWIs are still vying for the "Dubai life," and real estate like luxury apartments, villas, duplexes, and penthouses in Dubai's upper-price range remains a highly sought-after commodity.
Dubai's HNWI real estate market drivers
The behavior of prices in the mainstream market is mostly determined by this market segment. Only 8% of all residential transaction volumes last year—worth approximately $95 billion—were $10 million or more in value. This was in contrast to last year's record 120,000 deals.
Dubai has become a global center of commerce over the past fifty years, which has contributed to its wealth, according to Knight Frank.
This has encouraged an exceptionally high standard of life and great public safety, along with infrastructural development and a concentration on social mobility.
"According to the 317 high-income individuals that we polled, the city's excellent infrastructure is, all things considered, the primary reason why real estate in Dubai is appealing. The World Economic Forum's (WEF/Davos) 2023 competitiveness report, which was released in January, actually placed the UAE's infrastructure quality fourth in the world.
Dubai's HNWIs' Shifting Preferences
According to Knight Frank, the residential market in Dubai has changed over the past 20 years to provide "destination communities," each with distinctive features and attractions that appeal to the city's large expat population from across the world.
There has been an increase in demand for the best Hotel apartments, a villa, a penthouse, and a duplex for Sale in UAE with access to greenery or parks, even as numerous services and facilities, such as schools, community malls, clinics, and sports facilities, have become the standard.
The number one factor for HNWIs considering a home purchase in Dubai, according to Shehzad Jamal, partner, MEA, Strategy & Consultancy, Knight Frank, is access to green space or parks. When evaluating their possibilities for city real estate, 88 % of HNWIs have indicated that this could be a deal-breaker.
He added that the second most significant factor in the choosing of a home among HNWIs is the desire to live close to a hospital or medical facility, which reflects the increasing emphasis on personal well-being observed globally. And the third most important criterion for choosing, according to some reports, is having access to the beach.
Date: 24 Jul, 2024