Published On: June 15, 2023Categories: Building2.8 min read563 wordsViews: 84

In 2022, UAE was home to over 100,000 millionaires, and approximately 3,500 high-net-worth individuals moved to Dubai last year.

Dubai’s ultra-luxury property market has been witnessing unprecedented demand with Dh100-million-plus ticket purchases increasingly becoming a norm in the post-pandemic period, thanks to a strong inflow of ultra-high-net-worth individuals to the emirate.

According to real estate industry executives, Europeans, East Asians and Gulf nationals are the majority of the big-ticket property buyers valued in excess of Dh100 million in Dubai in the last couple of years.

“Currently, the top buyers of ultra-luxury properties in Dubai are citizens of the UAE, India, China, Saudi Arabia, and the UK. These nationalities are frequently investing in Dubai’s high-end properties due to favourable economic and political conditions, quality of living, and attractive lifestyle options,” said Dr Taieser Al Saati, executive partner at Luxhabitat Sotheby’s International Realty.

Al Saati holds the record for selling the costliest penthouse located in Marsa Al Arab, Jumeirah, for Dh420 million last month.

He expects the Marsa Al Arab Hotel project can potentially see more record-breaking deals, thanks to its prime location, ultra-luxury facilities, and unique offerings.

According to global real estate consultancy Knight Frank, the $10 million+ homes market in Dubai continues to strengthen, with 88 sales being registered in Q1 2023 alone. 2022 saw Dubai recording 219 deals above the $10 million price point, positioning the city as the fourth busiest luxury homes market in the world. 2023 is shaping up to be another record year for this segment of the market.

According to The Henley Global Citizen Report, the UAE was home to over 100,000 millionaires in 2022 as all three emirates of Dubai, Abu Dhabi and Sharjah recorded a big inflow of millionaires as well as some people joining the millionaire club after winning raffle draws. Dubai alone has 68,600 millionaires at the end of 2022.

Andrew Amoils, head of research at New World Wealth, said says traditional wealth magnet such as Dubai has experienced strong millionaire growth over the past decade.

“Dubai is an established international wealth centre, with its low tax rates making it a magnet for migrating millionaires from all over the world. Approximately 3,500 high-net-worth individuals moved to the city in 2022 alone,” said Amoils.

‘Dh100m no longer considered expensive’

Andrew Cummings, partner and head of prime residential at Knight Frank, said the local property market landscape shows some real super prime units and there will be more $100 million in properties that are coming up and viably being sold.

“If we go back a few years ago, Dh100 million property was a struggle. In pre-Covid time, there were few sales of over Dh100 million. But now we are seeing it much more prevalent with many developers launching (such units). Bugatti Residences by Binghatti has been just launched with a Dh750 million penthouse. Dh100 million is no longer considered incredibly expensive,” Cummings told Khaleej Times recently.

He added that prime property prices are rising as every owner/developer is trying new price points.

“Now what is being delivered is truly world-class architecture with world-class brands being involved. Villas could equally sit in Beverly Hills as well as in Dubai and that is why people are willing to pay. I would never look at any property in Dubai that is unsaleable because there is a buyer out there for everything.”

Knight Frank head of prime residential property added that most of the buyers of $20 million units are Europeans and East Asians.

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