Wealthy buyers are flocking to Dubai to buy properties worth $10 million or more as the emirate records the sale of 142 luxe properties in this range so far this year, Knight Frank told Arabian Business.
“The global elite are paying record prices to secure beachfront villas,” said Faisal Durrani, Partner, Head of Middle East Research at real estate consultancy Knight Frank.
“It is this insatiable demand from global high net-worth individuals (HNWIs) for homes in Dubai that has propelled prime residential values by 54.6 percent in the last 12 months – the highest level for any prime residential market in the world.”
High net-worth individuals coming from across the world have $2.5 billion to spend on Dubai real estate this year, Knight Frank revealed in a statement inaugurating its latest report ‘Destination Dubai’. Last year, $3.8 billion was spent on homes priced at over $10 million in the emirate.
Wealthy buyers are flocking to Dubai to buy luxury homes, primarily those situated in the city’s most sought after districts. Downtown (37 percent) and Palm Jumeirah (30 percent) were the top favourites among the survey’s respondents.
High net-worth individuals coming from the UK, Europe or North America’s preferred residential locations included the Palm Jumeirah and Emirates Hills while East Asian investors preferred to buy in Downtown and Business Bay.
“66 percent of global HNWI say they are looking to purchase residential property in Dubai for use as a second home. This mirrors our own market experience and marks a significant departure to our previous two cycles that were hamstrung by speculative ‘buy-to-flip’ activity, resulting in the extreme price volatility we have seen historically,” Durrani said.
According to him, the current real estate investment cycle is being characterised by the entry of genuine end users and second home buyers “who are securing homes in the most exclusive enclaves in the city such as the Palm Jumeirah and then spending almost the same amount again on refurbishing these homes as they look to heavily customise their purchases for personal use.”