The luxury property market in Dubai is once again on the verge of a major upsurge with global migration of millionaires as the next boosting factor.
A new report by property agency Betterhomes estimates that there will be 142,000 millionaires who will be relocating to other parts of the world in 2025. Assuming that only 5 percent of them (approximately 7,100 high-net-worth individuals (HNWIs) would decide to relocate to Dubai, the emirate would have access to an additional 7.1 billion in new investments, supporting the current luxury real estate boom.
That is not just a mere speculation. Dubai has already been an attraction of global wealth, due to its policies that are friendly to investors, its high-end lifestyles and political stability. The real estate market of the emirate has recorded a strong performance in the last few years, and the impact of the entry of wealthy buyers is continuing to change the scenario.
Record-Breaking Deals
Over the past few weeks there have been a series of eye-popping property deals. The largest of them is the acquisition of a villa in Emirates Hills at an astounding Dh260 million. The report cites that the average amount of money that the wealthier investors are investing in their residential property is Dh11.4 million ($3.1 million), and the high-net-worth families are investing Dh134 million ($36.5 million) on prime homes like waterfront homes and branded residences.
These are end-user purchases that are geared towards permanence, professional services, and cross-generational planning- not flip culture.
That is, the big spenders are not only investing but settling. And that is a difference that counts.
Where the Great Money is Going
The most demanded locations remain legacy and luxury neighbourhoods in Dubai. Palm Jumeirah had the highest number of transactions with 85 transactions valued at Dh3.8 billion. In third place is Emirates Hills, which had 30 transactions worth Dh1.9 billion. In the meantime, Dh9.4 billion in sales has been recorded in 146 transactions in homes valued above Dh35 million this year.
Wealth is centralizing around branded ecosystems, legacy neighbourhoods, according to Richard Harding, an executive at Betterhomes. As policy clarity and quality-of-life premiums compound, the prime market in Dubai is becoming structural rather than cyclical.
A Market Structural Change
This is an indication of a more profound shift in Dubai property. Unlike in the earlier booms, which were mostly fuelled by speculation and quick flipping, the current boom seems to be based on long-term strategies. Not only do the buyers want to make a good investment, they are interested in homes that match their lifestyle, family plans, and the basis of their professional life.
Access to branded residences, architecture with a sense of identity, and top-quality infrastructure are some reasons that make Dubai an aspired destination among world elites. Consequently, the demand of ultra-luxury properties is forecast to withstand well, particularly with more HNWIs moving in.
The Takeaway
That is why, according to the forecasts, the new millionaires in Dubai might inject an incredible $7.1 billion into the market in 2025. Such an inflow will not only be advantageous to the real estate sector, but it will have spillover effects in the finance, healthcare, and education segment as well as on the luxurious services.
As the emirate goes on to establish itself as a global wealth hub, the migration of the wealthy is no longer a trend. It is a structural change and Dubai is all set to cash in.
Source – https://gulfnews.com/business/property/will-dubai-get-71b-boost-from-more-millionaires-calling-city-their-home-1.500238221
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