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There Has Been An Unprecedented Demand For Ultra-Luxury Properties. As Evidenced By Indian Billionaire Ambani’s Purchase Of The Most Expensive Property Ever For Dh600 Million.
Dubai’s prime property prices are significantly lower by 20 to 80 percent. In comparison to major global cities, such as Monaco, Hong Kong, New York, London, Geneva, Paris, Beijing, and Tokyo. Even after experiencing a considerable surge in rates during the post-pandemic era. As per the Wealth Report by Knight Frank, $1 million (Dh3.67 million) can purchase 105 square meters in Dubai. While in Monaco, the same amount would only fetch 17 sqm, 21 sqm in Hong Kong, 33 sqm in New York, 34 sqm in London, 43 sqm in Paris, 60 sqm in Tokyo, and 87 sqm in Melbourne.
Due to these favorable prices, the emirate’s luxury property market has witnessed a significant increase in foreign investment since 2020. The successful management of the pandemic and the implementation of new long-term visas have contributed to boosting demand from foreign investors.
In the post-pandemic period, there has been an unprecedented demand for ultra-luxury properties in Dubai. Evidenced by Indian billionaire Mukesh Ambani’s purchase of the most expensive property ever for Dh600 million. Other record-breaking deals were also made in 2022, including the costliest apartment ever sold in Dubai for Dh410 million. One property has been listed for sale at Dh800 million, potentially becoming the costliest ever sold.
Furthermore, as the emirate’s aviation sector and economy bounced back from the pandemic. Dubai has become the world’s most connected city post-Covid in 2022. Rising from the second position during the pre-Covid era.
Henry Faun, partner, and head of Knight Frank’s Private Office in the Middle East, stated that he foresees Dubai to continue to lead the domestic market in the Gulf throughout 2023. Dubai’s growth has been remarkable since the pandemic, mainly driven by its safe-haven status. Moreover, its status as a popular destination for luxury second homes. Combined with the government’s robust response to the pandemic, which has instilled business confidence.
According to Knight Frank, prime property prices in Dubai are expected to grow by 13.5 percent in 2023. The highest among all major cities worldwide. The premium market has experienced a shortage of supply due to high demand over the past couple of years. In contrast, most other cities are expected to see moderate single-digit growth.
According to The Wealth Report, Dubai is expected to continue leading the way with a projected 13.5 percent increase in prime property prices for 2023. Thanks to its affordability, global appeal, and accessibility. This follows its position as the top market for prime property price growth in 2022. Where it outperformed 100 markets surveyed by Knight Frank, registering a 44 percent increase.
The report also highlights the emergence of Singapore and Dubai as crucial wealth hubs, despite the UK, European Union, and the US remaining popular among globally mobile wealthy residents. The report praises Dubai’s efforts in attracting wealthy residents by addressing perceived weaknesses such as limited length of stay. With the introduction of the Golden Visa scheme, longer-term residence options have become available.
According to Arash Jalili, founder, and CEO of Unique Properties, the UAE’s real estate sector is experiencing the full effect of the country’s post-pandemic resilience.
Jalili stated that prices in the luxury real estate market have remained strong, with some properties selling for as much as 50% of the asking price. High net-worth individuals (HNWIs) from all over the world are moving to the UAE to contribute to this growth by making significant purchases. He expects this trend to continue in the near future, with prime properties providing the highest return on investment and Dubai remaining a global destination for residents and investors alike.
