The United Arab Emirates (UAE) has become a significant center for business and finance, home to many extremely wealthy people.
High-net-worth individuals have been drawn to the United Arab Emirates (UAE) by the country’s enticing investment options and high standard of living since the economy and standard of living there have improved. Some of the world’s wealthiest people and many expats call the United Arab Emirates (UAE) home. Because of its low tax rate, convenient location, and liberal economic climate, the country is increasingly sought after as a haven for ex-pats and foreign investors.
Rising national income means more money for everyone. This raises the standard of living for everyone. As a result, people in the area now have more disposable income and a generally better living level. Because of the United Arab Emirates (UAE)’s more favorable economic climate and more significant per capita income, an increasing number of high-net-worth individuals (HNWIs) are relocating there in search of lucrative investment possibilities and a more opulent standard of living. Furthermore, the influx of wealthy individuals has been aided by the UAE’s haven status, highly diversified economy, well-established healthcare system, luxury shopping and dining options, prime residential property market, reputable international schools, and year-round leisure activities.
The administration has also positioned the country as an attractive investment destination. It has allowed foreign investment to reach 100% in a few economic areas. To keep talented workers and attract more wealthy international investors, the UAE has launched the “UAE Residence by Investment” program, which grants eligible persons a renewable 10-year residence card. To boost its international profile and entice potential residents, workers, and investors, the United Arab Emirates (UAE) has instituted long-term visas and relaxed other visa requirements and social conventions.
The luxury real estate market in the United Arab Emirates (UAE) has responded to this increase in demand by delivering a plethora of high-end projects, with developers focusing on cutting-edge infrastructure and including luxurious amenities like private beach access, yacht berths, and bespoke concierge services. As high-end real estate sales in Dubai continue to climb, the city has been named the world’s fourth-most active market for such properties.
Overpriced real estate in Dubai brought in almost $3.8 billion that year. Those with a net worth of more than $10 million are increasingly drawn to Dubai to invest in real estate, particularly luxury villas and flats. Buyers are increasingly interested in already-built houses rather than those still in the planning stages.
Due to government initiatives, increasing oil prices, and other steps to help the economy, the UAE real estate market has recovered from the epidemic. The average price of a home costing more than $10 million in the first quarter of 2023 was about $1,970 per square foot, up 16 percent year over year from the first quarter of 2022 when that figure stood at $1,700.
In the first three months of 2023, property prices in Dubai increased by 13 percent yearly due to the high demand for completed high-end properties. The latest quarterly price increase of 5.6% is the seventh straight quarterly increase. The price per square foot of a villa is now $395.8, up 15% year over year, while the price per square foot of an apartment is $334.9. The quarterly price increases for villas were 5.1%, and for apartments, 5.7%.
Luxury real estate in Dubai is still less expensive to purchase than in other big cities like London or Hong Kong, and it also offers higher rental and investment rates. This increased interest from buyers has led to a boom in the real estate market in Dubai and Abu Dhabi. High net-worth individuals intending to purchase real estate in Dubai have reportedly preferred Downtown Dubai and Palm Jumeirah.
The luxury house market boom has caused a price increase, even for apartments and villas. This means that by 2023, Dubai’s residential luxury real estate market is expected to increase at a rate of 13.5%, faster than any other prime market in the world.
Dubai’s supply of luxury real estate is expected to remain stable in the future thanks to the government’s encouragement of new project launches. If there is a mismatch between demand and availability, rents might skyrocket, adding pressure to difficult-to-maintain infrastructure. However, as the UAE economy continues to beat its global peers, the forecast for this niche sector remains bright and offers various chances for investors and developers.