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.