The luxury real estate market in the emirate of Dubai will continue to thrive in the second half of 2022, according to various industry experts and analysts. At the moment there is a shortage of elite projects within this segment and the high demand for luxury real estate in the emirate can be explained by the influx of wealthy individuals, millionaires and entrepreneurs who want to permanently move or purchase a second home in Dubai.

The Emaar Properties development company has launched a number of successful projects in Dubai Creek Harbour to replenish the supply of expensive real estate on the property market. Among those that have already been released in 2022 in the area are Creek Palace, Rosewater, Creek Crescent, Grove, Lotus and Orchid. The Creek Crescent project is the most recent launch, and features apartments with 1-3 bedrooms, as well as four townhouses with 3 bedrooms, at a minimum price of AED 1,280,000 (USD 350,000). The key feature of the complex is a 3-storey podium with high-end residential amenities, including swimming pools, a gym and much more.

According to the latest Henley Global Citizens Report, it is expected that in 2022 about 4,000 millionaires will move to the UAE. These HNWI are attracted to the country due to the persistent fight against the COVID-19 pandemic, the successful holding of the Expo 2020 Dubai exhibition, as well as the possibility of 100% foreign ownership of companies, and various investment programmes that allow them to obtain residency

Starting from the 4th quarter of 2020, sales of luxury real estate have increased significantly, according to Prathyusha Gurrapu, Head of Research and Advisory at the real estate consulting company, CORE. In fact, in 2021, the largest number of transactions in the secondary market in excess of AED 10,000,000 (USD 2,700,000) over the past 10 years was registered. The iconic Palm Jumeirah district accounted for almost 35% of these transactions.

A significant increase in the volume of transactions in excess of AED 10,000,000 was recorded this year in the first quarter compared to the same quarter last year. This is an increase of 140.2% compared to last year. The total number of transactions from January to March constitutes 483 transactions worth over AED 10,000,000 compared to 201 transactions in the first quarter of 2021.

The primary real estate market (off-plan) is also becoming more popular, according to the CORE report, and this was influenced by the fact that all ready-made offers in the elite segment were bought by large investors. This year, the primary real estate market is expected to double in order to meet the demand of potential wealthy investors.

In addition, reformed visa rules, which will allow investors to receive a Golden Visa when investing from AED 2,000,000 (USD 545,000) in off-plan real estate or secondary projects, will come into force in September. This step will attract even more wealthy foreign investors to Dubai and increase the stability of the emirate’s real estate market.