The booming real estate market in Dubai has caught the attention of wealthy individuals worldwide, as affluent investors from various parts of the globe are increasingly shifting their focus to investing in luxury properties in the Gulf city and moving away from the highly volatile stock market this year, reported Arab Business on Wednesday.
The report cited industry experts who stated that more Gen Z buyers are expected to lead investments as trends are also set to shift generationally by 2024, with millennials showing strong interest in real estate.
Karun Luthra, Vice President of Global Operations at Foremen Fiefdom, a leading real estate investment company headquartered in Dubai, said, „With the rise in real estate prices and Dubai’s increased global status, investors, especially the wealthy, are becoming more interested in real estate investments.“ He spoke to Arab Business.
„Although the stock market offers liquidity and quick profits, real estate in Dubai stands out for its stability, long-term growth, and significant tax benefits,“ he added.
The report also highlighted that the luxury real estate market in Dubai is now more dynamic and productive than ever before, offering high returns to investors.
This is why individuals with high net worth (HNWI) from countries like India, Russia, China, the UK, France, Germany, and North America continue to flock to Dubai amid the current global economic turmoil and increasing political uncertainty, the report stated.
Furthermore, a recent report identified investors from Australia, Europe, Turkey, and Iran as the ones set to lead Dubai’s next growth cycle.
„They are attracted by high-yield business opportunities, strategic locations, and attractive tax incentives in the city,“ Luthra further stated.
From beachfront villas in Palm Jumeirah to penthouses in downtown Dubai, luxury properties not only symbolize status but also serve as a safe investment in uncertain times,“ Luthra added.
The report quoted industry experts who said that the Dubai real estate market has reached a ten-year high in the past few months, and demand and prices are expected to continue rising.
Dubai’s branded residences have been a hit since the debut of Armani Residence in Burj Khalifa in 2010. Since then, demand for these upscale residences has been on the rise, with Dubai’s market segment now accommodating over 70 branded residences, including brands like Bulgari, Versace, and Six Senses.
„The allure of branded residences, coupled with Dubai’s global status, further solidifies Dubai’s luxury real estate market as a top choice for investors,“ said a senior industry executive.
He noted that some of these trends are driven by global instability, prompting investors to seek tangible and stable assets.
Therefore, luxury real estate in Dubai is more than just a lifestyle choice; it is also a means to protect wealth, he added.
The real estate market in Dubai continues to defy expectations of an economic slowdown, with demand on the rise and transactions worth $74.6 billion expected to be conducted in 2023, according to real estate advisory firm Knight Frank LLP.
Investments in high-end properties in the city are also projected to increase, showcasing Dubai’s resilience and attractiveness as a real estate investment destination.