Dubai is expected to attract $2.5 billion worth of investments in its real estate sector from global high-net-worth individuals (HNWIs) this year, a report showed Wednesday.
Wealthy people from across the globe have been increasingly targeting Dubai's luxurious homes, said the first Destination Dubai report released by global property consultancy Knight Frank, which also highlighted Downtown (37%) and Palm Jumeirah (30%) as top favorites among survey respondents.
Palm Jumeirah (15%) and Emirates Hills (16%) emerge as preferred locations for residential purchases for the UK/European and North American HNWIs.
Meanwhile, emerging areas like the Al Wasl-Dubai Canal corridor and Tilal Al Ghaf are showing potential as future 'prime' locales.
Some $3.8 billion was spent on homes priced at over $10 million in the emirate, the report showed in 2022. Real estate transactions in Dubai reached a record $143.7 billion (AED 528 billion) in 2022.
The report surveyed 183 HNWI globally, each with a net worth of over $3 million —excluding their main home or primary residence. This group together owns 851 homes around the world and has a combined net worth of $3.2 billion.
Apartments are the more popular residential property type among global HNWI, with 64% preferring them, the report found. However, amongst those with a net worth of over $10 million, 53% prefer to buy a villa in Dubai.
'Investment/capital gains' and 'second home/holiday home' purchases also became the top motivators for this demographic. HNWIs, with a net worth of over US$10 million primarily, aim for 'portfolio expansion.'
The total budget for Dubai property spending this year among respondents stood at $2.5 billion, with a big portion willing to pour upwards of $5 million. East Asian buyers show higher spending propensity, with many ready to invest over $20 million.
