According to the "Luxury Real Estate Outlook Report 2024" by Sotheby's International Realty, the sale prices for ultra-luxury residences in the UAE reached a record high of $4,000 per square foot (approximately ¥25,000) in 2023. This marks a historic peak, signifying that acquiring an ultra-luxury residence in Dubai demands substantial financial investment.
Chris Whitehead, Managing Partner at Sotheby's International Realty in Dubai, highlights that the per-square-foot price is equivalent to the monthly rent of a furnished apartment in Dubai, showing a continuous upward trend.
However, it is noteworthy that despite the soaring prices, Dubai is still considered a relatively affordable real estate market. Compared to international metropolises like London, real estate prices in Dubai are relatively lower, and Dubai doesn't impose the burden of real estate taxes. This makes Dubai an ideal choice for many high net worth individuals.
In recent years, numerous high net worth buyers from European countries such as the UK, France, and Germany have flocked to Dubai. They are drawn to Dubai's lifestyle, value-for-money properties, and the advantages of tax exemptions. Particularly after the lockdowns imposed due to the COVID-19 pandemic, more people have sought stable residences away from political unrest and tax burdens.
The high property prices in Dubai are also influenced by supply and demand dynamics. As more high net worth individuals flock to Dubai, the increasing demand propels the rise in property prices. This trend is expected to continue. Not only does political unrest in the Middle East drive more buyers towards Dubai, but Dubai's own high-quality properties, cost-effective offerings, clean environment, and abundant retail and entertainment facilities contribute to its appeal.
Despite the surge in prices, Dubai is still considered a relatively undervalued real estate market. Compared to international metropolises like London, the price per square foot is more reasonable, coupled with the advantage of tax exemptions, attracting more ultra-high net worth individuals to choose Dubai as a preferred destination for winter retreats or summer escapes.
