Dubai’s Luxury Property Boom

Amidst geopolitical and economic uncertainty elsewhere, Dubai’s luxury property market has seen an unprecedented surge in prices in 2023. Outperforming other global cities such as New York, London and Hong Kong according to a report by Knight Frank. With a remarkable 40% increase in luxury property prices throughout last year, Dubai has become one of the hottest real estate markets for high-net-worth individuals worldwide. It seems the reasons for the increase in demand have been the government’s handling of the pandemic, liberal visa policies, world class amenities and tax friendly environment. All of this, alongside the fantastic lifestyle the city offers as contributed to the sale of 219 properties worth $10 million or more last year.

The city is also emerging as a favoured destination for hedge fund traders and family offices because of its ease of doing business and the fact it is a global travel hub. Investment firm Edmond de Rothschild has reportedly obtained a licence from DIFC recently, that will allow it to advise clients locally and provide access to the group’s entire offerings. According to the report, over one third of ultra-high net worth individuals in the middle east increased their wealth by over 10% in 2022.

That being said, Dubai is still one of the world’s most “affordable” luxury markets. The City ranks 16th in Knight Frank’s 20 global prime residential markets, with $1 million affording 1,130 square feet in prime areas, providing four times more space than New York, London and Singapore.