Dubai’s Property Market to See HNWI Investment Surge in 2024

High-net-worth individuals (HNWIs) from across the globe are expected to inject over AED 16 billion ($4.4 billion) into Dubai’s real estate sector in 2024. This influx solidifies Dubai’s status as a premier investment hub.

According to Knight Frank, a global real estate consultancy, while Dubai remains the top choice, Abu Dhabi and Sharjah also attract significant interest from HNWIs.

Post-pandemic, Dubai’s real estate market has captivated millionaires due to high returns on investment, competitive prices, superior infrastructure, safety, and a great economy. Property prices and rentals have surpassed previous highs set in 2014.

Dubai has become a home for thousands of millionaires from Africa, the UK, Asia, and beyond. Data from Henley & Partners reveals that Dubai hosts 72,500 millionaires with assets exceeding $1 million, 212 centi-millionaires with $100 million-plus properties, and 15 billionaires.

Dubai continues to be the top destination for the global HNWI community, as said by Faisal Durrani, partner and head of research for Mena at Knight Frank. He gave attention to Dubai’s market as the busiest for $10 million-plus home sales, with a strong desire among millionaires to experience the ‘Dubai life’. Notably, the appeal of owning a home in Dubai increases significantly with net worth.

Durrani noted the exceptional budgets of ultra-high-net-worth individuals eyeing Dubai properties. A remarkable 25% are willing to spend between $60-80 million, and 16% aim to invest over $80 million, with the average budget for this elite group at $58.5 million.

In the first quarter, Knight Frank and Reidin reported 105 homes valued at $10 million were sold, primarily in Palm Jumeirah, Palm Jebel Ali, Business Bay, Al Wasl, and Jumeirah Bay Island. Additionally, 12 homes exceeding $25 million were sold from January to March.

Ramjee Iyer, chairman and managing director of Acube Developments, emphasised the growing demand for properties with enhanced amenities, furnished options, and spacious designs as Dubai attracts new residents. He predicts that the increasing availability of such units will eventually stabilise rental prices.

Emad Saleh, founder and chairman of Amwaj Development, brought up the rising demand for green spaces, entertainment amenities, and safe environments for children as critical factors for new buyers choosing homes in Dubai.

Original article reference: Khaleej Times.


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