According to a report by Sotheby's International Realty, an increasing number of high-net-worth individuals are choosing to move to Dubai, driving the prices of luxury residences in the city to record levels, reaching a selling price of up to $4,000 per square foot (approximately 14,692 Australian dollars).

Chris Whitehead, the Managing Partner at Sotheby's International Realty in Dubai, stated that the per-square-foot prices are almost comparable to the monthly rent of a furnished apartment, marking a continuous annual increase since 2020.

Real estate information in Dubai indicates that as of January 12, 2024, the monthly rent for a furnished one-bedroom apartment in upscale neighborhoods might exceed 14,000 dirhams, equivalent to the selling price.

However, Sotheby's points out that compared to other markets like the UK, property prices in the Emirate of Dubai are still relatively lower, and property owners are not required to pay real estate taxes. Whitehead mentioned that over the past two to three years, high-net-worth buyers from European countries such as the UK, France, and Germany have chosen to move to Dubai, attracted by the advantage of not having to pay property taxes.

Last year, Sotheby's auction house sold a top-floor apartment in Dubai's Marsa Al-Arab hotel for $114 million and another apartment in the Bulgari Residences for $112 million. High demand has driven prices to surge, and Whitehead expects this trend to continue, noting that recent political unrest in some Middle Eastern countries has also prompted more buyers to come to Dubai.

Dubai's allure lies in its property quality, value for money, cleanliness, and retail offerings. In the past, Dubai was seen by many as a place for temporary stays, where people would come to earn money and then return to their home countries. However, an increasing number of individuals are choosing to migrate to Dubai and decide to settle down for the long term, attracted by the lifestyle the city offers.

Data from Savills indicates that in the first two quarters of 2023, residential prices in Dubai increased by an average of 16.9%, with apartment prices rising by 17.2% and villa prices increasing by 15.1%. Despite the soaring prices, Dubai's real estate is still considered undervalued.

While Dubai's real estate market has attracted a substantial number of millionaires, according to data from Henley & Partners, at least 5,200 high-net-worth individuals chose to relocate to the UAE in 2022, with an expected increase of 4,500 individuals in the following year. This further confirms Dubai's allure as a destination for the affluent.