Dubai’s Luxury Property Market Poised for Fastest Growth in H2
Dubai’s luxury property market is set to maintain its robust demand, outpacing other major cities worldwide in terms of growth rate during the second half of 2023. The surge in millionaires investing in the market has led to a scarcity of high-end units, with experts projecting an additional 10% increase in high-end unit prices for the latter half of the year, making it the fastest-growing segment of the entire year.
The impact of the luxury segment is also boosting the capital value of mid and affordable units, with steady price increases of 5 to 10% expected in H2 2023. Branded residences like Bulgari Lighthouse, Como Residences, Baccarat Residences, and Six Senses Residences are narrowing the price gap and attracting international buyers.
Dubai’s success in attracting ultra-high net-worth individuals (UHNWIs) has led to a notable increase in average prime rents, with an impressive 62% surge since December 2020. With an unprecedented surge in demand, more than 15 projects were launched and almost entirely sold out between June and July, indicating strong investor appetite that is likely to continue into 2024.
The chairman of Danube Properties believes that luxury properties have unlimited upside potential, as demonstrated by recent villa sales ranging from Dh100 million to Dh600 million each. Prime property prices in Dubai remain 20 to 80% more affordable than in other major cities, attracting more buyers to capitalize on Dubai’s real estate potential.
The positive market outlook for H1 2023 affirms Dubai’s position as a global hub for luxury real estate, and experts project a 5-10% surge in luxury property prices in H2 2023. Notably, Dubai tops the list of cities for capital value increases in both H1 and H2 2023, signaling a promising outlook for the luxury housing market in the second half of the year.