According to a recent report released by Realiste, a prop-tech company based in Dubai, the luxury real estate market in the city is expected to experience a significant surge of 14% in high-end residential property. This growth is being primarily driven by Chinese and Russian investors, with demand for premium properties in Dubai on the rise.
The removal of coronavirus-related restrictions in China has led to a surge of rich Chinese investors into Dubai’s luxury property sector. In addition, high inflation rates in European countries have also prompted European investors to increase their investments in Dubai’s high-end housing property assets.
Dubai’s reputation as a secure and stable hub for investors has emerged as a key factor behind the rising demand for its upscale property assets, attracting foreign investors seeking to preserve their wealth in premium properties. This has led to a massive upswing of 14% in the city’s luxury property market this year, with the most coveted residential areas in Dubai expected to witness an increase of around 2 to 7%.
The Russian investors, who dominated Dubai’s luxury real estate sector last year due to the Russia-Ukraine conflict, have been overtaken by European investors, according to the latest market report. The report shows that European investors have now replaced Russians as the top investors in Dubai’s high-end property segment.
Dubai’s luxury residential market is relatively affordable, with prime properties selling for about $800 per square foot, which is in stark contrast to other major financial hubs such as Singapore, where upscale housing properties sell for as much as $2,700 per square foot. This affordability factor has also contributed to the growing demand for Dubai’s luxury real estate among foreign investors.
Realiste co-founder, Alex Galtsev, is optimistic about Dubai’s luxury property market in 2023. He expects it to thrive due to a rising population, an influx of skilled individuals from the Commonwealth of Independent States (CIS), and increased investments from Europe and Asia.
Dubai’s luxury real estate market is performing remarkably amid the global slowdown, attracting foreign investments from high-net-worth individuals seeking to preserve their wealth in premium properties. Indian billionaire Mukesh Ambani’s $163 million purchase of a Palm Jumeirah property is a prime example of this trend.
In conclusion, Dubai’s luxury real estate market is poised to experience significant growth in 2023, with Chinese and European investors leading the charge. Dubai’s reputation as a safe and stable hub for investors, along with its affordable prices compared to other global financial hubs, is contributing to the growing demand for its upscale property assets