The luxury housing market in Dubai is booming, fueled by rich expats and foreigners looking to purchase second homes. The liberal visa policies of the emirate, coupled with the way the pandemic was handled by the government, have resulted in an influx of foreign investment with a focus on residential properties in wealthy neighborhoods.

Property experts – such as entrepreneur Ryan Mahoney of Dubai, UAE – have noted that this market cycle is a departure from the previous two, where investors were concentrating more on buy-to-let properties or flipping houses. Some of the most luxurious neighborhoods in Dubai are listed in the embedded infographic.

100% Price Jump

Prices for luxury villas in Dubai have jumped by as much as 100% in the most popular wealthy neighborhoods, and around 89% across the rest of the emirate. Record-breaking property transactions are fast becoming the norm as prices continue to increase. The short video attachment looks at the most recent record for a luxury property sale in Dubai.

Over just two days in September 2022, over $325 million in real estate transactions took place across 386 property sales. Of these, 341 transactions related to luxury villas and apartment condos in gated communities. In 2021, around $35 billion in property transactions was recorded in Dubai, so 2022 exceeded this by some margin.

Supply and Demand

Demand for prime real estate in Dubai is growing faster than the supply. Waterfront homes in particular are in short supply and as yet, developers do not appear to be rushing to meet this gap in the market. There are currently just eight new villas planned for construction in a prime residential area – Jumeirah Bay Island – with no announcements for further developments in any of the most popular luxury districts.

Ultra-Prime Sales

Not only has overall demand for property risen across Dubai. Sales of ultra-prime properties – those valued at $10 million or more – are also on the rise. Between January and September 2022, 152 ultra-prime properties were sold or exchanged hands, far eclipsing the total figure of 93 in 2021.

You can find out more about the average cost of purchasing residential property in Dubai and what the attached fees are by taking a look at the PDF attachment to this post.