A recent study by Knight Frank has unveiled the top 15 areas in Dubai where millionaires are flocking to invest in property, shedding light on the evolving trends in the city’s real estate market. Despite the emergence of new posh communities, traditional favorites like Dubai Marina, Downtown, and Business Bay continue to dominate the preferences of high-net-worth individuals.
Based on a survey of 217 respondents from 11 countries with a combined value of $20 million, the study identified the United States, China, Canada, the United Kingdom, and India as the leading markets from which millionaires plan to purchase property in Dubai.
Among the top 15 destinations for prime property investment are renowned areas such as Dubai South/Expo City, Dubai Canal, Palm Jumeirah, and Emirates Hills, reflecting the enduring appeal of established luxury locales.
Faisal Durrani, partner and head of research at Knight Frank, highlighted the remarkable growth of Dubai’s prime residential market, which saw a substantial 18.2 percent increase in the first quarter of the year. Projections indicate a 5 percent growth for the entire year, positioning Dubai as the third fastest-growing market globally, trailing behind Auckland and Mumbai.
Durrani noted a significant shift in buyer preferences, with an overwhelming 56 percent expressing a desire to purchase completed or newly built units, signaling a preference for immediate occupancy over off-plan investments. This shift has led to a shortage of ready homes available for sale in the market.
Dubai’s allure as a property investment destination remains unrivaled, with the city recording 431 deals valued at $10 million-plus last year, surpassing global financial hubs like London and New York.
The study also unveiled intriguing insights into the motivations behind property acquisitions by ultra-high-net-worth individuals. While 64 percent cited investment purposes, 31 percent indicated personal reasons for their purchases. Proximity to green spaces, hospitality and healthcare centers, beaches, sea views, and malls emerged as key factors influencing their investment decisions.
As Dubai’s property market enters its fifth year of sustained price growth, experts anticipate a gradual slowdown in the rate of appreciation. However, there is no imminent sign of a market downturn, with key performance indicators suggesting resilience in the face of evolving economic dynamics.
With Dubai continuing to attract discerning investors seeking lucrative opportunities in its vibrant real estate landscape, the city remains firmly positioned as a global hub for luxury property investment.
Source: Khaleej Times
