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HNWI surge set to propel Dubai’s ultra-luxury realty to new heights

Changing Market Dynamics
  • Explore how the surge in HNWI investors is reshaping Dubai's real estate landscape, fueling demand for exclusive properties and luxury amenities.

HNWI surge set to propel Dubai’s ultra-luxury realty to new heights

In the first quarter, Dubai’s residential property market surged to $110 billion boosted by a 55% surge in investment inflows

Riding the crest of a property boom on the back of a remarkable surge in investment inflows through the first quarter, Dubai’s realty is projected to see a 24.6 per cent increase in high-net-worth individuals by 2025, “propelling the ultra-luxury segment to unprecedented heights”.

In the first quarter, Dubai’s residential property market surged to $110 billion boosted by a 55 per cent surge in investment inflows, with 42 per cent of new investors hailing from international markets, Springfield Properties, a leading real estate brokerage in Dubai, said its Quarter 1, 2024 Market Insights Report.

“Building upon the record-breaking achievements of 2023, Dubai’s residential market continued its upward trajectory in Q1 2024, with an impressive 37,134 transactions totalling $109.8 billion. The upward trend is expected to escalate following the move to waive the Dh1 million minimum down payment requirement for golden visa eligibility through real estate investment,” the report said.

“The first quarter of 2024 witnessed a significant milestone in Dubai’s real estate landscape, marked by a notable surge in sales. This surge reflects the robust investor confidence and market liquidity vital for sustaining growth and competitiveness,” said Farooq Syed, CEO of Springfield Properties. “Our report highlights a growing demand for off-plan properties, signalling a strategic shift in investment preferences and highlighting the sector’s potential for capital appreciation and yield generation,” he added.

“During this quarter, the balance between off-plan and secondary market sales underscores a mature and diverse real estate landscape. This equilibrium reflects investor confidence and market stability, showcasing the resilience of the property sector,” the report said.

“Dubai’s strategic focus on regulatory frameworks and ongoing infrastructure improvements have substantially bolstered the city’s appeal. When combined with our market insights, these elements reaffirm Dubai’s position as a prime destination for investors in search of enduring value and growth opportunities,” said Sayed.

Another trend, according to a separate survey conducted by ValuStrat, is that the rate of capital growth in the apartment market is steadily approaching that of the villas.

A report published by the international consultant firm on Dubai residential capital values has revealed that the ValuStrat Price Index (VPI) reached 167.5 points in March, marking an increase of 24.7 per cent annually and 2.1 per cent monthly. Villas reached 211 points, while apartments stood at 139.2 points, compared to the baseline of 100 points set in January 2021.

Apartment prices rose by 1.9 per cent month on month, marking a record annual growth of 20.1 per cent. Comparatively, villa capital gains were at 2.4 per cent compared to February and 29.6 per cent since the previous year.

Discovery Gardens showed the highest apartment capital growth in the last year, rising 32.6 per cent. This was followed by The Greens (29.8 per cent), Palm Jumeirah (29 per cent), The Views (24.8 per cent), and Town Square (24.5 per cent).

With a VPI base price of 100 in January 2021, the highest rate of growth has been in Palm Jumeirah apartments, which have increased 83.6 per cent, followed by The Greens (55.2 per cent) and Jumeirah Beach Residence (52 per cent).

Villas in highly sought-after areas like Palm Jumeirah and Jumeirah Islands continue to show high rate of growth, both up 37.7 per cent compared to last year. They were followed by Dubai Hills Estate (34.8 per cent), Mudon (30.2 per cent), and Arabian Ranches (29.2 per cent).

The highest rate of growth in villas since January 2021 was in Jumeirah Islands (143.5 per cent), followed by Palm Jumeirah (125.7 per cent).

There were 15 transactions for ready properties priced over Dh30 million. These villas are situated in Palm Jumeirah, Dubai Hills Estate, Jumeirah Golf Estates, Emirates Hills, and Jumeirah Bay Island.

Annually, off-plan Oqood (contract) registrations increased by 14 per cent, with a monthly growth of 18.2 per cent. Emaar (14.9 per cent) had the highest share of Oqood transactions during March 2024. It was followed by Damac (10.9 per cent), Azizi (6 per cent), and Sobha (5.6 per cent) led the developer sales charts overall.

Top off-plan locations transacted included projects in Jumeirah Village Circle (10.9 per cent), Zabeel First (6 per cent), Meydan One (5.7 per cent), and Business Bay (5.6 per cent). Jumeirah Village Circle (9.3 per cent) led in the sales of ready homes, followed by Business Bay (7.4 per cent), Dubai Marina (6 per cent) and Downtown Dubai (5.3 per cent).


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