The number of luxury projects in the Dubai real estate market will double in 2022
The luxury real estate market in the emirate of Dubai will continue to thrive in the second half of 2022, according to various industry experts and analysts.
Being the playground of the world’s wealthiest individuals, ultra-luxurious residences are more important now than ever.
At the moment there is a shortage of elite projects within this segment and the high demand for luxury real estate in the emirate can be explained by the influx of wealthy individuals, millionaires, and entrepreneurs who want to permanently move or purchase a second home in Dubai.
A significant increase in the volume of transactions in excess of AED 10,000,000 was recorded this year in the first quarter compared to the same quarter last year. This is an increase of 140.2% compared to last year.
The primary real estate market (off-plan) is also becoming more popular. This year, the primary real estate market is expected to double in order to meet the demand of potential wealthy investors.
In addition, reformed visa rules, which will allow investors to receive a Golden Visa when investing from AED 2,000,000 (USD 545,000) in off-plan real estate or secondary projects, will come into force in September. This step will attract even more wealthy foreign investors to Dubai and increase the stability of the emirate’s real estate market.
As stated in the latest Henley Global Citizens Report, the UAE ranked the top millionaire destination worldwide in 2022, as about 4,000 more millionaires are expected to relocate to the UAE this year, making it one of the country’s biggest millionaire net inflows on record. Most millionaires in the UAE come from Russia, India, Africa, and the Middle East.
In terms of estimated HNWI growth over the next 10 years, the Henley Private Wealth Migration Dashboard predicts that the number of millionaires and billionaires will rise by 40% in the UAE. Taking into account all the above-mentioned information, it is clear that the ultra-luxury market in Dubai will keep thriving, with more exclusive projects to come in order to fix an undersupply of upscale properties within the local market.