V. Sivaprasad, chairman of Condor Developers, said wealth migration remains a strong tailwind for Dubai luxury homes segment. “Dubai continues to be a top relocation choice for HNWIs from Europe, Asia, and the wider Middle East, drawn by its tax-free environment, global connectivity, and evolving cultural landscape. The UAE’s Golden Visa programme and strategic focus on lifestyle-centric urban planning are further reinforcing long-term interest in premium property,” said Sivaprasad.

“As the city builds on its fourth consecutive year of luxury market expansion, Dubai is poised not only to maintain but to elevate its status as one of the world’s top-tier real estate investment destinations,” added Sivaprasad.

The shift in buying patterns is also reshaping the market. Off-plan transactions — once seen as more speculative — have become mainstream in the luxury bracket. Off-plan sales now account for 69 per cent of all Dh10 million-plus deals, compared to just 14 per cent in 2020. This signals strong trust in the city’s future inventory and confidence in developers’ ability to deliver on time.

New villa communities such as Palm Jebel Ali, District One West, and The Acres are among the most transacted prime locations, while premium apartments in Dubai Harbour, Palm Jumeirah, and Downtown Dubai continue to see strong buyer interest.

Jumeirah Islands, a formerly quiet residential enclave, has become one of the most talked-about villa markets in the city. In 2024, 89 homes in Jumeirah Islands sold for more than Dh10 million — a sharp rise from virtually no such transactions before 2021. Many of these deals involved properties that underwent high-end renovations, suggesting that investors are willing to pay a premium for upgraded inventory in established communities.

Data from the Dubai Land Department (DLD) supports these trends. In 2024, the emirate recorded over Dh450 billion worth of real estate transactions across all segments. But it is the luxury tier that is registering the highest velocity and value. Villas now dominate the Dh10 million-plus space, accounting for 70 per cent of such transactions in 2024.

Even as villas command dominance, apartments in prime waterfront locations such as the Palm and Dubai Harbour are pushing pricing benchmarks higher. These units average Dh5,400 per square foot, a reflection of both limited supply and international appeal. Developers are catering to this premium demand by launching branded residences — Dubai luxury homes affiliated with global hospitality or fashion brands — which continue to outperform in terms of speed of sale and pricing.

According to Savills, Dubai has emerged as the most active market globally for branded residences. The city is expected to deliver 40 per cent of all such developments across the Middle East and Africa by 2031. These projects typically offer curated amenities, security, and brand prestige, making them highly attractive to discerning international buyers.

Supporting this trend are new large-scale masterplans announced across the city. Projects such as the redevelopment of Jebel Ali Racecourse and the second phase of Jumeirah Golf Estates, along with Emaar’s Grand Polo Club and Resort, are expected to bring fresh luxury inventory into the market over the next few years.

Analysts expect this momentum to continue. Savills projects an 8 to 10 per cent increase in prime residential prices through 2025, driven by sustained demand, lifestyle evolution, and Dubai’s emergence as a global second-home destination.

“The next wave of development is aligning with the global luxury buyer’s aspirations — bespoke living, branded experiences, and community-driven exclusivity,” said Cummings. “Dubai’s ability to deliver all these within an investment-friendly ecosystem makes its prime real estate market one of the most exciting in the world today.”

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Source: Khaleej Times

23rd June, 2025