Today's Edition
YOUSEF AL ARABI (ABU DHABI)
The UAE’s real estate market is witnessing a significant surge in demand, driven by an influx of affluent individuals, according to industry officials and experts.
They have confirmed to Aletihad that there is a rising demand for spacious homes, particularly residential apartments with two to four rooms and a hall, and residential villas with four to five bedrooms. This trend is attributed to the arrival of wealthy property buyers in the UAE, particularly following the introduction of long-term golden residency facilities.
The UAE, topping the Arab world and ranking 11th globally in the “World Ultra Wealth Report” by Altrata, is a preferred destination for the world’s wealthy for living, working, and investing.
The report highlighted that the UAE had the highest growth rate of billionaires, increasing by 18.1% in 2022. Approximately 45 billionaires, each with wealth exceeding $1 billion, and about 134,000 millionaires, whose wealth surpasses $1 million, reside in the UAE.
New Trends in UAE Real Estate Landscape
Obaid Saeed Mondar, founding partner of Union Square House Real Estate brokerage, shared with Aletihad that Dubai’s real estate market traditionally offered small- to-medium-sized residential units, similar to trends in Singapore, Hong Kong, and New York. This was a result of developers focusing on units that matched buyers’ affordability.
However, he noted that, with an influx of luxury home buyers, the UAE’s real estate landscape is experiencing a higher demand for large and serviced units.
These luxury buyers, accustomed to spending $1 million to $2 million in cities like Hong Kong and London for smaller homes, can now purchase larger, serviced units with spacious kitchens in the UAE for the same amount. This makes the UAE, especially Dubai, an appealing destination, Mondar said.
He elaborated: “Developers are responding to this trend by creating larger residential units tailored to luxury home buyers’ needs. Upscale areas like Palm Jumeirah are seeing the construction of these larger units, marking a shift from the previous focus on smaller units. Developers are now building luxurious, spacious, and fully serviced units to meet the needs of this customer segment.”
“Real estate developers like Nakheel are capitalising on this trend, investing in constructing larger, more luxurious living spaces to attract luxury home buyers. The local real estate market is renowned for its quick adaptation to changes in investor preferences and trends,” he added.
Mondar highlighted the broader impact of this shift towards larger residential units on the real estate market, potentially leading to a rise in luxury property prices as developers rush to meet demand. This trend might also affect the appeal of smaller units as larger homes become more prevalent, he explained.
He emphasised that this trend underscores the local real estate market’s adaptability to changing market dynamics, with developers responding by constructing larger and more luxurious units.
Investment Opportunities
Mohamed Turky, Director of Management and Development at Waleed Real Estate Group, affirmed the UAE’s status as a hub for luxurious real estate and facilities, continually attracting wealthy investors.
He confirmed that the demand for luxurious and distinctive real estate remains robust, with active trading in the premium and luxury property markets. Buyers in these markets are known for their strong financial capabilities, he added.
Turky noted that wealth owners view the local real estate market as an investment opportunity. They acquire distinctive properties across the country in anticipation of increased demand for this type of real estate.
The country is recognised as one of the preferred global economic destinations for investors and projects, thanks to its investment-friendly policies and high-quality infrastructure.
