Dubai’s prime residential market has exhibited significant growth in recent years, with values in key areas like Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island experiencing a noteworthy rise in 2023. It’s important to note that this growth stems from a lower baseline compared to other established luxury markets. Nevertheless, Dubai’s position within the global prime residential arena is solidifying, as it currently holds the third spot in the 2024 forecast, projected for further growth of 5%.
Contributing to this positive outlook is the sustained growth observed in prime residential prices. Following an impressive 44.4% surge in 2022, the market witnessed a remarkable 16% rise in 2023. This momentum is further amplified by a significant decrease in available inventory – 38.5% for Dubai overall and a similar decline observed in Burj Khalifa specifically (52%). This trend suggests a shift in buyer behavior, with a growing “buy-to-hold” mentality leading to longer residency intentions amongst dominant buyers.
Interestingly, despite witnessing record-breaking sales of luxury properties exceeding $10 million (431 units) and achieving an all-time high of 56 deals surpassing $25 million in 2023, Dubai remains positioned near the bottom tier of the world’s most expensive prime residential markets. This translates to a significant advantage, as an investment of $1 million in Dubai grants access to three times more residential space (979 square feet) compared to major cities like London, New York, and Singapore. This affordability further strengthens Dubai’s appeal among international high-net-worth individuals who are key players in the upper echelons of the market.
Beyond the immediate market performance, Dubai’s residential market is demonstrably transitioning from an emerging to an established player. This evolution is evident in the changing buyer profile, with a shift towards a more sophisticated clientele seeking properties comparable to offerings in other established global cities. Additionally, the type of real estate being developed reflects this maturity, with projects featuring contemporary designs and amenities that wouldn’t be out of place in other global hubs.
Furthermore, Dubai’s appeal extends beyond affordability. Its exceptional lifestyle offerings and position as one of the safest cities globally attract not only international second-home buyers but also local residents who are increasingly choosing to establish deeper roots in the city. This trend fosters the development of diverse and highly sought-after communities beyond the traditional beachfront mansions, catering to a wider range of residents and fostering a sense of community within the city.
Publish Feb 28, 2024
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-luxury-real-estate-one-of-most-affordable-markets-in-the-world-despite-15-9-price-rise-experts/
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