Dubai’s real estate market is experiencing an unprecedented boom, with no signs of slowing down. Thanks to the UAE’s Golden Visa initiative, high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) are fueling this surge, channeling an impressive $146 billion into the sector so far. Experts attribute this influx to Dubai’s promising outlook, favorable policies, and its status as a global hub for luxury living and business.
Golden Visa: A Catalyst for Growth
Introduced by the UAE government to attract investors and entrepreneurs, the Golden Visa programme has been a key driver behind Dubai’s real estate boom. The initiative offers long-term residency options, which provide security and stability for those looking to invest in the region. Industry leaders report that Dubai has become the largest offshore investment market in the world, with significant growth expected in the coming years.
In 2023 alone, Dubai received $66 billion (Dh242 billion) in foreign investment, with a large portion attributed to the Golden Visa programme. This trend is projected to accelerate, with investments expected to surpass $82 billion (Dh300 billion) by 2028.
Investment in High-Demand Areas
The most popular areas for investors include Dubai Hills, Creek Harbour, Downtown, Palm Jumeirah, and exclusive villa and townhouse communities. These locations, known for their strong rental yields and capital appreciation, have become hotspots for both local and international investors. Most Golden Visa holders focus on properties in the Dh2 million range, which meets the visa’s minimum requirement and offers attractive investment returns.
According to Bas Kooijman, CEO of DHF Capital S.A., ultra-luxury properties in areas like Palm Jumeirah and Jumeirah Bay Island are also in high demand, especially among UHNWIs from Europe, the CIS, and Southeast Asia. These investors see Dubai not only as a prime location for a second home but also as a way to diversify their wealth.
The Role of Infrastructure and Business Environment
Beyond the Golden Visa, Dubai’s appeal lies in its world-class infrastructure, safety, ease of doing business, and tax-free income policy. The UAE government continues to enhance its residency and investment programmes, positioning Dubai as a top destination for global investors.
“Dubai’s rapid development, combined with its strong regulatory framework, makes it an ideal destination for investors seeking long-term value,” said Kooijman. He added that the city’s expansion of luxury developments and large-scale projects further boosts its attractiveness.
Attracting Millionaire Migration
Dubai has become a magnet for millionaires. In 2022 alone, around 4,000 millionaires relocated to the UAE, with the trend continuing in 2023. This influx is driven by Dubai’s favorable tax environment, strategic location, and business-friendly policies. The number of UHNWIs in Dubai is projected to grow from 580 to 750 over the next five years, with these individuals expected to invest up to $5 billion in real estate by 2024.
Future-Proof Investments
Many Golden Visa holders view their property purchases as long-term investments. According to Farooq Syed, CEO of Springfield Properties, the majority of visa holders are acquiring properties not only as personal residences but also as assets with strong investment potential. Around 60%-70% of these buyers use their properties for dual purposes, benefiting from Dubai’s robust short-term rental market.
The city’s luxury residential market continues to see significant growth, driven by demand for ultra-luxury properties and future-proof developments. Investors, both local and international, are drawn to Dubai’s modern infrastructure, financial security, and long-term capital appreciation.
The Golden Visa’s Ongoing Impact
The Golden Visa programme will remain central to Dubai’s real estate strategy. As the UAE government expands eligibility and simplifies the application process, more HNWIs are expected to be drawn to the city. Dubai’s strategic position as a global hub for business, luxury living, and innovation ensures that its real estate market will continue to thrive.
As Dubai solidifies its position as a premier destination for global investors, the real estate sector is set to remain a key area of investment, ensuring a prosperous future for the emirate’s property market.
Source: Khaleej Times
