High-net-worth individuals (HNWIs) in Dubai grew by 62 percent from 2012 to 2022
A 62 percent increase in high-net-worth individuals (HNWIs) from 2012 to 2022, has “placed Dubai’s real estate market on a trajectory” to achieve AED300 billion in sales this year, according to a prediction by real estate agency Unique Properties.
Dubai is currently home to over 68,400 HNWIs and many are increasingly relocating to the the country. This growth is mainly fueled by the emirate’s handling of the pandemic, its convenient geographic location, tax advantages, favourable policies, among other benefits.
All these factors have been forecast for the real estate market in Dubai to see a 46 percent growth in 2023.
“Dubai’s real estate market has maintained its post-pandemic momentum and this has unlocked the potential to shatter last year’s historic growth with HNWIs consistently relocating to the UAE. Real estate has already surpassed AED 12 billion since the beginning of the year and with total property transactions in April increasing by more than 16 percent when compared to the same period one year ago,the emirate remains on an upward trajectory,” Unique Properties chief executive officer and founder Arash Jalili said.
Dubai is a top destination for wealthy individuals
Dubai’s reputation as a top destination for wealthy individuals has resulted in a steady influx of wealthy investors.
The political and economic turmoil in other parts of the world, particularly Europe, has led to an increasing number of Europeans moving to the UAE.
This trend is expected to continue, and the luxury property market in Dubai is predicted to grow by around 14 percent this year, driven in part by an anticipated rise in Chinese investors.
The growth is particularly prominent in key districts such as Downtown Dubai, The Palm Jumeirah, and JBR. The demand for luxurious residences in these areas has caused the prices of high-end homes in Dubai to rise significantly, with an increase of 6 percent to 7.9 percent in 2023, making it the highest value increase globally.
Despite this surge in prices, daily transactions for properties valued at AED 1 million and above continue to take place.
Based on the latest data, Dubai recorded a total of 7,615 property transactions in April, and there was an average annual increase of 14.5 percent in real estate prices. The off-plan market played a significant role in driving this growth, the statement added.