International investors have always found Dubai’s luxury real estate market alluring, and it is anticipated that this trend will continue into 2023 with continued demand from high-net-worth investors across the globe.
Dubai’s luxury real estate market has been on the rise due to several factors. Firstly, the global disruption has led to a flight of capital from CIS countries (Commonwealth of Independent States), and with the UAE emerging faster than others from the Covid-19 crisis, Dubai’s property market has become a prime beneficiary. Additionally, Dubai’s recognition as the luxury capital of the world, due to its world-class airport, favorable lifestyle, and property ownership opportunities for investors, or “Golden Visas,” has played a big role.
Dubai is identified as one of the most desirable cities to live and work in by investors and entrepreneurs, who also make their investment decisions by actively following global trends, tax advantages, and comparative value. Also, the luxurious real estate market sector is less affected by increased borrowing rates. The luxury property market has set a new benchmark with prices of Dhs 5,000 per square foot at the beginning of 2023. Palm Jumeirah, Dubai Marina, Downtown Dubai, Business Bay, and Jumeirah Bay remain in high demand among international investors.
Dubai’s name has become synonymous with luxury living, thanks in part to its branded residences. In fact, more than 50 of these deluxe projects are slated for completion within the next few years. By aligning themselves with well-known brands, developers can boost their profits, while buyers appreciate the added value that comes with owning a home associated with a luxury lifestyle experience.
Off-plan payment structures have also become extremely attractive to buyers, with up to 50% payable at handover and a post-completion payment structure in some cases. This allows buyers to manage their wealth distribution better, become less reliant on loans, and adjust to currency fluctuations, including cryptocurrency. Despite relatively high pricing in the current Dubai real estate market, sales are at an all-time high, and it’s likely the prices will continue to rise over the next few years, making Dubai a formidable player in the real estate market compared to other major global cities.