Dubai’s luxury real estate market is set to experience a 14 percent surge in high-end residential property, with Chinese and Russian investors leading the charge, as per a report released by Realiste, a prop-tech company based in Dubai that specializes in developing AI-driven products for real estate investment.
The study shows that in 2023, these foreign investors are keen on benefiting from Dubai’s flourishing property market, driving up demand for premium properties in the emirate.
Chinese Investors Return as Covid Restrictions Ease
According to the study, the removal of coronavirus-related restrictions in China has resulted in rich Chinese investors crowding into Dubai’s luxury property sector. Due to high inflation rates in their home countries, European investors are also likely to increase their investments in the emirate’s high-end housing property assets.
Dubai’s Safe Haven Status Attracts Foreign Investors
Dubai’s reputation as a secure and stable hub for investors has emerged as a key factor behind the rising demand for its upscale property assets, as per Realiste.
The latest market projections by Realiste expect a massive upswing of 14 percent in the city’s luxury property market this year. In particular, the most coveted residential areas in Dubai, such as Downtown Dubai, Palm Jumeirah, Dubai Marina, Jumeirah Bay, and Bluewaters, are likely to witness an increase of around 2 to 7 percent.
Russian Investors Overtaken by Europeans
Dubai’s luxury real estate sector saw a change in buyer demographics, with high-net-worth Russians dominating the market last year, owing to the Russia-Ukraine conflict. However, according to the latest market report, European investors have now replaced the Russians as the top investors in Dubai’s high-end property segment.
Affordable Prices Compared to Global Hubs
According to the study, Dubai’s luxury residential market is relatively affordable, with prime properties selling for about $800 per square foot. This is in stark contrast to Singapore, a major financial hub, where upscale housing properties sell for as much as $2,700 per square foot.
Alex Galtsev, the Co-Founder of Realiste, is optimistic about Dubai’s luxury property market in 2023. He expects it to thrive due to a rising population, an influx of skilled individuals from the Commonwealth of Independent States (CIS), and increased investments from Europe and Asia.
Dubai’s Global Appeal
Amid the global slowdown, Dubai’s luxury real estate is performing remarkably, attracting foreign investments from high-net-worth individuals seeking to preserve their wealth in premium properties. Indian billionaire Mukesh Ambani’s $163 million purchase of a Palm Jumeirah property is a prime example of this trend.
Via Arabian Business
mashallah nice
Not good idea , to invest in dubai…in case of war , economy in the emirates will be broke just in 4 hours…how , – if bomb , so 80% forengers workers will be run away very
fast from there & 20% of local arabic cannot do nothing..