City remains the number one destination for the global HNWI community and millionaires clamour for the ‘Dubai life’

by Waheed Abbas

High-net-worth individuals from around the world are expected to invest more than Dh16 billion ($4.4 billion) in Dubai’s property market in 2024, as the emirate emerges as the most preferred destination for investors.

According to global real estate consultancy Knight Frank, HNWI’s investment appetite draws them to Abu Dhabi and Sharjah after Dubai.

Dubai property market has been on the radar of high-net-worth individuals or millionaires’ radar in the post-pandemic period due to very high returns amidst low prices, world-class infrastructure, safety and security and the growing overall economy of the country. The emirate’s property market has surpassed the previous peaks of 2014 as both prices and rentals have reached new highs.

As reported by Khaleej Times, thousands of millionaires from Africa, the UK, Asia, and other regions have made Dubai their home over the past few years. According to Henley & Partners’ latest data, Dubai is home to 72,500 millionaires with $1 million-plus wealth, 212 centi-millionaires with $100-million-plus homes, and 15 billionaires.

“Dubai remains the number one destination for the global HNWI community. Not only has the city cemented its status as the busiest $10million-plus home sales market in the world, but millionaires continue to clamour for the ‘Dubai life’ and property at the upper echelons of the price spectrum in the emirate is a hotly contested commodity. This is best evidenced by the fact that the desire to own a home in the city jumps from 28 per cent for those with a net worth of $2-5 million to 78 per cent for those with a net worth in excess of $15 million,” said Faisal Durrani, partner and head of research for Mena at Knight Frank.

He added that what is truly remarkable is the average budget for ultra-high-net-worth individuals considering a Dubai property purchase. A staggering 25 per cent are prepared to spend between $60-80 million on a home in the city, while a further 16 per cent would like to spend over $80 million. Meanwhile, the average budget for this exclusive cohort stands at $58.5 million, underscoring the immense potential of the market.

According to Knight Frank and Reidin, around 105 homes with $10 million value were sold in the first quarter, mainly in Palm Jumeirah, Palm Jebel Ali, Business Bay, Al Wasl and Jumeirah Bay Island. Meanwhile, 12 homes with a value of $25-million-plus were sold during January-March.

Ramjee Iyer, chairman and managing director, Acube Developments, said as Dubai continues to attract new residents, there is an increasing demand for properties that offer value-added features such as better amenities, fully furnished or partially furnished units, as well as more spacious dwellings.

“As the market shifts in this direction, developers need to react and deliver on these needs. Dubai’s attractiveness as a safe, happy, and business-oriented city has been noticed over the past two years, and this, in turn, puts upward pressure on rental prices. As more units become available this year and next, we should see a natural stabilisation of rental prices occur.”

Emad Saleh, founder and chairman of Amwaj Development, said there is a growing demand for open green spaces within the community, more entertainment and lifestyle amenities, and an environment where kids can play safely. “These are key decision-making factors when new buyers are choosing a place to call home,” said Saleh.