Dubai's ultra-luxury real estate market has seen unprecedented demand due to the influx of ultra-high net worth individuals into the city, with Dhs100 million plus purchase tickets increasingly becoming a norm in the post-pandemic era.
According to real estate industry executives, Europeans, East Asians and nationals of Gulf countries have been the majority of bulk property buyers in Dubai worth more than Dh100 million in the past few 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 regularly invest in high-end properties in Dubai due to favorable economic and political conditions, quality of life and attractive lifestyle options," said Dr. Taieser Al Saati, Managing Partner of Luxhabitat Sotheby's International Realty.
Al Saati holds the record for selling the most expensive penthouse in the Marsa Al Arab in Jumeirah for Dh420 million last month.
He expects the Marsa Al Arab hotel project is likely to see more record-breaking deals, thanks to its prime location, ultra-luxury amenities and unique offerings.
Dubai's $10 million plus residential market continues to strengthen with 88 sales recorded in the first quarter of 2023 alone, according to global real estate consultancy Knight Frank. 2022 saw Dubai record 219 transactions in excess of the $10 million price point, making the city the fourth busiest market for luxury homes in the world. 2023 will be another record year for this segment of the market.
According to the Henry Global Citizen report, the UAE has more than 100,000 millionaires in 2022 as all three emirates of Dubai, Abu Dhabi and Sharjah have seen a significant influx of millionaires, as well as some joining the millionaire club after the lottery. Dubai alone will have 68,600 millionaires by the end of 2022.
Andrew Amois, head of research at New World Wealth, said traditional wealth magnets such as Dubai have experienced strong millionaire growth over the past decade.
"Dubai is a well-established international wealth center, and its low tax rates make it a magnet for the migration of millionaires from around the world. Approximately 3,500 high net worth individuals will relocate to the city in 2022 alone," said Amoils.
Andrew Cummings, partner and head of prime housing at Knight Frank, said the local real estate market landscape shows some truly super prime units, with more $100 million properties coming up and feasibly being sold.
"If we go back a few years, a Dhs100 million property would be difficult. In the pre-Covid days, there were very few sales over Dh100 million. But now we see that with many developers launching (such units), it's more common. binghatti's Bugatti Residences has just launched a Dhs750 million penthouse. dhs100 million is no longer considered incredibly expensive," Cummings recently told the Hallelujah Times.
He added that prices for premium properties are rising as each owner/developer is trying out new price points.
"Right now, what is being delivered is truly world-class architecture with world-class brands involved. Villas can be as good in Beverly Hills as they are in Dubai, and that's why people are willing to pay. I would never look at any unsaleable property in Dubai because there are buyers for everything."
Knight Frank's head of prime residential property added that the majority of buyers for the $20 million units are European and East Asian.
