According to data from Knight Frank LLP, a real estate consultant, sales of ultra-luxury homes in Dubai doubled last year, benefiting from increased demand among some of the wealthiest individuals globally for purchases in the Middle East's business and tourism hub.
In 2023, Dubai sold 56 ultra-luxury homes with a total value of $2.27 billion, surpassing the previous year's 28 homes with a total value of $1.24 billion.
Dubai's real estate market faced challenges in the early stages of the COVID-19 pandemic, with many properties remaining unsold, painting a less optimistic picture for the market's outlook. However, for some, this became the opportune time to make purchases.
As the pandemic came under control and relaxed visa policies attracted more foreigners, demand for Dubai real estate has been rapidly increasing. Additionally, an influx of investors has driven the development of the luxury goods market, including Russians seeking asset protection, cryptocurrency millionaires, and affluent Indians seeking second homes.
Faisal Durrani, Head of Research for Knight Frank Middle East, stated that global super-rich individuals continue to view Dubai as a preferred destination, citing lifestyle and luxury homes as significant attractions. Dubai also possesses the conditions for global wealth concentration, making it a new magnet for the global elite.
Dubai's ultra-luxury real estate market is relatively new, previously selling a maximum of four homes worth over $25 million each per year. Developers are currently expanding their portfolios, but homes in ideal locations may become even more limited.
Dubbed as Billionaire Island by locals, Dubai has become the preferred destination for super-rich individuals and some affluent expatriates moving to the UAE in recent years.
Reportedly, Saudi billionaire Mohammed Abdul Latif Jameel and Israeli gambling magnate Teddy Sagi own properties on the island, while Isabelle dos Santos and the wife of Andre Skoch also own houses nearby. Additionally, football star Cristiano Ronaldo has purchased a mansion expected to be delivered in 2024.
Dubai's real estate market often experiences booms and downturns. Nevertheless, in recent years, the government's relaxation of visa laws and the introduction of permits for job seekers and freelancers have attracted a significant influx of high-net-worth individuals to Dubai, driving the real estate market's surge.
