Dubai Real Estate Market Continues to Attract Ultra-Rich Investors
In a report released on Tuesday, it was revealed that sales of homes in Dubai valued at $10 million or more increased by 6 percent in the first quarter compared to the previous year. The demand from international ultra-rich individuals for properties in the emirate remains strong, as reported by Reuters.
During the period from January to March, a total of 105 homes with a combined value of $1.73 billion were sold, showing a growth from around $1.6 billion in the same period last year, according to property consultancy Knight Frank.
Cash buyers dominated the market, with the palm tree-shaped artificial island Palm Jumeirah being the most popular area for luxury real estate, representing 36.3 percent of sales by total value. Other sought-after areas included Jumeirah Bay Island and Dubai Hills Estate.
Dubai, home to the world’s tallest tower, continues to attract foreign investment, particularly in the real estate sector, as part of its efforts to boost its economy through tourism and financial services.
Despite concerns of a potential market correction, Dubai ranked first globally for the number of home sales above $10 million last year, surpassing cities like London. The city also experienced double-digit price gains in luxury properties, unlike other major cities such as London and New York.
Faisal Durrani, Knight Frank’s head of research for Middle East and Africa, noted that the level of deal activity in Dubai’s luxury real estate market remains strong, with international high-net-worth individuals showing interest in acquiring properties in the city.
Durrani highlighted Dubai’s relative affordability in luxury homes, where buyers can get more residential space for $1 million compared to other global gateway cities. The strong demand indicates that many investors are purchasing properties in Dubai for second homes rather than quick resale for profit.