Knight Frank’s 2024 report projects that ultra-wealthy individuals, (those with assets exceeding $20 million), will spend $4.4 billion on Dubai real estate this year, a 76% increase from 2023.
Property prices have spiked 147% over the past five years, reflecting a shift from short-term investors to long-term homeowners, particularly from Europe and North America. The city’s Golden Visa program, launched in 2019, has also played a key role in attracting expatriates seeking permanent residency.
The Financial Times reports that the trend towards family-friendly developments is reshaping Dubai’s real estate landscape. Projects such as Eden Hills and Discovery Dunes cater to buyers looking for larger homes, a departure from the high-rise-dominated market.
Developers are responding with more spacious offerings, with properties at Eden Hills starting at $5 million for a 7,446-square-foot home. Rental yields of 6-8% are also encouraging expatriates to buy rather than rent, further fuelling demand.
Strict government regulations, including protection for off-plan purchases, have created a more stable investment environment, reducing the risks that led to the 2008 market crash.
Neighbouring cities are taking note of Dubai’s success, adapting their strategies to attract global investors. Abu Dhabi is differentiating itself by prioritising cultural capital and expansive, family-oriented residences.
Properties in the Emirate are up to 20% cheaper than similar homes in Dubai, with growing interest from buyers seeking a quieter alternative while remaining within commuting distance.
Meanwhile, Qatar’s real estate market has struggled to match Dubai’s momentum due to conservative policies and lower tourism figures, while Bahrain is undergoing a rapid transformation with new luxury developments from Kempinski and Waldorf Astoria. Ras Al Khaimah, set to become the UAE’s first gambling hub, is also experiencing a surge in luxury developments, positioning itself as an emerging market for investors.
