Dubai’s Ultra-Luxury Real Estate Set to Soar with HNWI Surge

Dubai's Ultra-Luxury Real Estate Set to Soar with HNWI Surge

Dubai’s ultra-luxury real estate market is poised for significant growth, propelled by a surge in high-net-worth individuals (HNWIs) and substantial investment inflows during the first quarter of the year. By 2025, HNWIs are expected to account for a 24.6% increase in Dubai’s real estate market, driving the luxury segment to unprecedented heights.

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The Dubai residential real estate market experienced a jump to $110 billion in the first quarter, fueled by a 55% increase in investment inflows. Springfield Properties’ Quarter 1, 2024 Market Insights Report revealed that 42% of new investors are from international markets. Springfield Properties is a leading real estate brokerage in Dubai.

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“Building on the record-breaking achievements of 2023, Dubai’s residential market continued its upward momentum in Q1 2024 with 37,134 transactions totaling $109.8 billion. The recent move to waive the Dh1 million minimum down payment requirement for golden visa eligibility through real estate investment is expected to further escalate this trend,” the report stated.

Farooq Syed, CEO of Springfield Properties, highlighted the market’s robust investor confidence and liquidity, vital for sustaining growth and competitiveness. “Our report showcases a rising demand for off-plan properties, indicating a strategic shift in investment preferences and demonstrating the sector’s potential for capital appreciation and yield generation,” Syed added.

The equilibrium between off-plan and secondary market sales reflects a mature and diverse real estate landscape, pointing to investor confidence and market stability.

“Dubai’s strategic regulatory measures and ongoing infrastructure enhancements have significantly boosted the city’s appeal. These elements, combined with our market insights, reinforce Dubai’s position as a top destination for investors seeking enduring value and growth opportunities,” said Syed.

ValuStrat’s survey showed the gap between apartment and villa capital growth rates narrowing, with the ValuStrat Price Index (VPI) reaching 167.5 points in March. This marks a 24.7% annual increase and 2.1% monthly increase.

Discovery Gardens saw the highest apartment capital growth at 32.6% over the past year, while other notable areas include Town Square (24.5%), The Views (24.8%), Palm Jumeirah (29%), and The Greens (29.8%).

In terms of villas, popular communities such as Palm Jumeirah and Jumeirah Islands experienced rapid growth, both up 37.7% from the previous year. Dubai Hills Estate saw a 34.8% increase, while other communities such as Arabian Ranches and Mudon also showed strong gains.

High-value ready properties were sold in notable areas like Jumeirah Bay Island, Palm Jumeirah, Emirates Hills, Jumeirah Golf Estates, and Dubai Hills Estate.

March 2024 saw a significant increase in off-plan Oqood registrations, rising 18.2% monthly and 14% annually. Emaar led the Oqood transactions at 14.9%, followed by other developers such as Sobha (5.6%), Azizi (6%), and Damac (10.9%).

Top off-plan project locations included Jumeirah Village Circle (10.9%), Zabeel First (6%), Meydan One (5.7%), and Business Bay (5.6%). For ready-to-move-in sales, Jumeirah Village Circle led with 9.3%, followed by Business Bay (7.4%), Dubai Marina (6%), and Downtown Dubai (5.3%).

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