Global rich are picking Dubai’s luxury real estate over a volatile stock market

Dubai’s real estate boom is attracting the global wealthy as cash-rich investors from many parts of the world increasingly shift their focus to investing in luxury properties in the Gulf city and away from the highly volatile stock market this year, reported Arabian Business on Wednesday.

The report cited industry experts that forecast more Gen Z buyers dominating investments as 2024 also sees generational change in trends, with millennials showing a keen interest in real estate.

“With property prices climbing and Dubai’s global stature rising, investors, especially the wealthy, are increasingly leaning towards real estate,” Karun Luthra, Vice President, Global Operations at Foremen Fiefdom, a Dubai-based leading real estate investment firm, was quoted as saying by Arabian Business.

“While the stock market offers liquidity and rapid gains, real estate in Dubai stands out for its stability, long-term growth, and significant tax benefits,” he added.

2023: Pakistanis remain among top 10 buyers of Dubai property, Indians top list

The report added that Dubai’s luxury real estate market is more dynamic and fruitful than ever before, offering high-yielding returns to investors.

It cited this as the reason for high-net-worth individuals (HNWIs) from countries like India, Russia, China, the UK, France, Germany, and North America continue to flock to Dubai amid the current global economic fluctuations and increasing political uncertainties.

A recent report additionally singled out investors from Australia, Europe, Turkey and Iran being set to lead Dubai’s next growth cycle.

“They are drawn by the city’s high-yield business opportunities, prime locations, and attractive tax advantages,” Luthra was further quoted as saying.

“From waterfront villas on the Palm Jumeirah to penthouses in Downtown Dubai, luxury properties not only symbolize status but also serve as secure investments in times of uncertainty,” Luthra added.

Dubai’s property market hit a 10-year high in recent months and expected to see further momentum in demand and price rise, added the report quoting industry experts.

Dubai property boom is defying expectations of slowdown

Dubai’s push for branded residences

Dubai has already defied predictions of a bust as demand continued to rise and deals worth $74.6 billion were executed in 2023, according to property consultant Knight Frank LLP.

Investments in high-end properties in the city are also expected to see a spike.

The first branded residences to debut in Dubai were the Armani Residences in Burj Khalifa in 2010.

Since then, demand for these premium homes has only grown, and Dubai has seen an expansion in this niche market over the years, currently home to over 70 branded residences including the likes of brands such as Bulgari, Versace and Six Senses.

“The appeal of branded residences, combined with the city’s global standing, further solidifies Dubai’s luxury real estate market as a prime choice for investors,” a senior industry executive was quoted as saying.

He said this trend is fuelled in part by global instability, pushing investors to seek tangible, stable assets.

Consequently, luxury real estate in Dubai transcends lifestyle, it has become a means of safeguarding wealth, he added.