Individuals with a net worth of more than $3 million are expected to pour into the Dubai property market $2.5 billion in the whole of 2023.
Year-to-date, Dubai has surpassed Hong Kong and New York to become the busiest market globally for properties valued at over $10 million.
Specifically, according to the world’s leading real estate consulting firm Knight Frank, the luxury housing market in Dubai is still growing hot, when 176 homes with a minimum price of 10 million USD were sold in the first 6 months. this year.
Knight Frank predicts individuals with a net worth of over $3 million will pour into Dubai’s $2.5 billion real estate market in the whole of 2023. The majority of this group comes from China, Hong Kong and Singapore.
Booming market
The total transaction value amounted to $3.1 billion in the first half of the year, demonstrating high demand as well as resilience in the Dubai property market.
According to the Knight Frank group, despite an average price of around 6,900 dirhams ($1,879) per square meter, Dubai is one of the world’s most affordable luxury housing markets.
For comparison, for $1 million, customers can buy a 226 square meter apartment in Hong Kong, but in Dubai they can own a 1,130 square meter apartment.
About a third of the luxury homes for sale are located on the palm island of Jumeirah, a wealthy neighborhood in Dubai. However, other inland areas away from the coast could soon become the hottest segment in Dubai.
Knight Frank says that investing in domestic infrastructure can encourage development to take place in such areas, especially because of green spaces, in addition, parks are becoming increasingly important to with high-income individuals who are considering buying a home in Dubai.
What’s so special about Dubai?
Dubai’s luxury real estate boom has been linked to its effective handling of the Covid pandemic, various government measures to attract long-term expats, and the influx of Russians emigrating due to the conflict. conflict in Ukraine.
When deciding to buy a property, Marketing Manager Simon Cheng, who lives in Hong Kong, carefully considered Japan and Dubai.
While worried about Japan’s taxes, location and local economy, he found the glitzy financial hub Dubai the most appealing.
“The rental yield in Hong Kong is around 2%, while in Dubai I expect it to be as high as 6-7%,” he told the South China Morning Post.
“It’s a better long-term investment. I don’t need to worry about not being able to rent property in Dubai. There, the people are very rich,” he said.
In addition, many initiatives have been adopted by Dubai to attract wealthy expats, such as remote work visas, retirement visas, and renewable “golden” visas.
To build its image as a cosmopolitan city, the UAE also revised its strict Islamic law to allow unmarried couples to live together and allow non-locals to apply foreign laws on divorce and inheritance.