What makes Dubai the world’s best place to buy luxury homes

• Affordable Luxury
• Easier to Buy Property
• Thriving Luxury Property Market
• Ideal Location
• Luxury of Choice

Dubai is a superlative experience, especially for those in search of a global investment hub or dream homes. Since real estate is one of the strongest facets of the economy, buying luxury properties in Dubai is an attractive option for high net worth individuals (HNWIs) across the world. But what makes Dubai the best place to buy luxury homes? Let’s find out!

Why Buy Luxury Property in Dubai

An increasing number of global citizens belonging to different nationalities, choose Dubai as their second home. A lot of them see it as the perfect place to buy properties for investment. Let’s look at the factors that make Dubai an attractive real estate investment hub and how it compares to other high-profile international cities across the globe.

The Affordable Quotient for Luxury Properties in Dubai

First things first, Dubai offers incomparable value for luxury real estate. Given that foreign homeownership in Dubai came into effect in 2002, Dubai is a relatively new entrant into the league of global luxury property hubs such as Singapore, New York and London. The emirate boasts mega real estate developments designed to cater to individuals with a penchant for high-end living. 

Even with the opulent lifestyle that is commonly accepted as the standard in Dubai, the city remains highly affordable. Knight Frank’s 2023 Wealth Report reveals that despite a 44% growth in real estate prices, luxury homes in Dubai are far cheaper in value than those in other key global cities. 

The Knight Frank Report analysed the luxury residential property worth USD 1M (AED 3.7M) that can be purchases in major luxury destinations throughout the world.

$1M will obtain following amount of square footage in prime properties around the world: 

• Monaco: 183 sq. ft.
• Hong Kong: 226 sq. ft.
• New York: 355 sq. ft.
• London and Singapore: 366 sq. ft.
• Geneva: 398 sq. ft.
• Los Angeles: 420 sq. ft.
• Dubai: 1,130 sq. ft.

Even cities like Paris, Shanghai and Sydney offer less than 480 sq. ft. of luxury property for the same budget.

But as you can see, you can get a whopping 1,130 sq. ft. of luxury property in Dubai for USD 1M, at an astonishingly low price per sq. ft. of USD 885 (AED 3,250) on average.

Some might argue that Dubai, being relatively new to the league, lacks prime property developments compared to the long-standing prominent key players, accounting for the higher affordability. But that’s not the case. Dubai is home to some of the most superlative property developments in the world that match and often surpass the standards of those found in cities like London, Geneva and Singapore. What sets Dubai apart is its unparalleled portfolio of prime properties, which gives buyers the ultimate benefit of choice – but that’s just one aspect of many.

Consumer prices in Dubai are almost 28% lower than most of the cities mentioned above, that gives residents greater purchasing power to create the lifestyle they prefer. People are also able to enjoy a high standard of living, with convenience being its biggest selling point. Nowhere else in the world can you get petrol delivered to your home for barely any extra cost!

It’s Easier to Buy Luxury Property in Dubai

Another important contributor to Dubai’s standing as an ideal destination for investing in luxury properties is the ease of doing business. Besides its reputation of being a haven of upmarket communities and luxurious properties, the laws and the taxation system in Dubai is investor-friendly. Plus the emirate is an undisputed dynamic business hub in the region.

Foreign real estate investors in Dubai majorly benefit from the capital and income-tax-free system and the absence of additional levies on property purchase. So whether you’re buying luxury homes in Dubai for personal use or as an investment, you can count on simpler transactions and processes. 

This is a big advantage when you compare the emirate with cities like London, Paris, Geneva and Monaco considering the rapid property tax reforms these cities underwent, levying the additional tax for foreigners on the purchase of luxury properties. All this combined with healthy ROIs in the emirate’s residential market, steady population growth and an ever-increasing standard of living make purchasing luxury homes in Dubai seem like the ideal investment decision. 

In addition, it is easier to secure a home loan in Dubai. If you plan to purchase your dream luxury home in Dubai, our exclusive partnership with the ADCB Dream Home Solution can help you get instant online pre-approvals for your mortgages!

The Luxury Real Estate Dubai Market is Thriving

According to the DLD, real estate sales transactions in the first quarter of 2023 went up by 62%, in comparison to Q1 2022. There was a notable increase in the price per sq. ft. for luxury properties, hinting at a rising demand trend for luxurious homes. The same growth was reflected in the Q1 2023 Property Sales Market Report, where investor interest was more inclined towards some of the best luxury properties in Dubai, concentrated in Dubai Marina, Downtown Dubai, Palm Jumeirah, The Villa and the Arabian Ranches. 

Dubai being the financial hub, is the most preferred migrating destination for wealthy expats and HNWIs. The introduction of Dubai’s long-term visas for real estate investors has further sweetened the deal for luxury investors in search of lucrative real estate options across the globe. The high influx of HNWIs brings in important wealth inflows, where most of it is invested in Dubai’s prime property market.

The Ideal Location of Dubai

Part of Dubai’s ever-increasing charm for investors is its ideal location. The emirate gives businesses the best of both worlds – the east and the west. Dubai’s time zone is one of the most convenient time zones for businesses that want to expand globally, giving them a centre point to match the timings of both the east and the west.

Besides that, Dubai’s location provides global connectivity in terms of travel. Simply taking a two to eight-hour flight from Dubai can land you in key cities in Asia, Europe and the Middle East. Combine all this with the long-term real estate visas and there is little that can hold a businessman and/or an investor from investing in Dubai as their long term home base.

The Luxury of Choice

Altrata in cooperation with Realm New World Wealth market research and Wealth-X, recently released their Residential Real Estate report for 2023. According to the report, there are 830 ultra high net worth individuals who have collective real estate assets worth over USD 30M (AED 110M) in Dubai, with 66.7% of them owning primary residence in the emirate.

While there are several essential layers working in Dubai’s favour, the city’s most attractive offering remains the diversity of prime properties available for purchase. Currently, there are more than 40 branded luxury residential projects in Dubai – one of the highest in the world.

From lavish villas and fully-serviced apartments to premium penthouses – Dubai’s luxury properties’ portfolio is unrivalled. The prime properties for sale in Dubai come in a massive choice spectrum, where investors can choose the areas, property types and the price they wish to pay for a luxury property. 

We’ve already established the fact that luxury properties in Dubai are priced far less than other prime cities in the world. Luxury real estate in Dubai can be broadly divided into apartments and villas. 

Top Areas to Buy Luxury Apartments in Dubai

According to the data on Bayut’s listings for the high-end apartments in Dubai Marina, with price per sq. ft. of USD 473 (AED 1,737) are the most popular option for investors. Palm Jumeirah, Bluewaters Islands and City Walk with their respective price per sq. ft. of USD 817 (AED 3,001) and USD 1,215 (AED 4,463) and USD 598 (AED 2,196) are other options where HNWIs can find luxury apartments for sale in Dubai. Apartments in these areas offer a excellent ROIs of over 5%.

Other areas in Dubai which are popular for their luxury apartments include Downtown Dubai and Mohammed Bin Rashid City.

Dubai also offers an extensive range of penthouses. Anyone in search of luxury penthouses for sale in Dubai can find them in Palm Jumeirah, Bluewaters Island, Downtown Dubai and Dubai Marina. Prices for Dubai luxury penthouses vary between USD 354k (AED 1.3M) and USD 204M (AED 750M) depending on property size and your area of interest.

Top Areas to Buy Luxury Villas in Dubai

Areas of interest for the luxury villas in Dubai include Dubai Hills Estate, Palm Jumeirah, Emirates Hills and Mohammed Bin Rashid City. Dubai Hills Estate offers affordable luxury with lavish villas available for as less as USD 529 (AED 1,943) per sq. ft., while Palm Jumeirah has pricier options with price per sq. ft. of USD 1,280 (AED 4,701).

Since the average size is often much larger in Dubai Hills Estate, the price per square foot turns out to be lower even for the more expensive properties. However, with golf course access, premium finishing and the backing of the leading developer in the UAE, it’s easy to see why Dubai Hills Estate has quickly become a popular option for investors!  

The price of luxury villas for sale in Dubai can go well over USD 123M (AED 450M) depending on the size and amenities available. 

All the above-mentioned areas rake an average ROI of more than 3%, with Mohammed Bin Rashid City being the most prominent, offering 7.1% returns on investment. Other areas worth considering for luxury villas in Dubai include Al Barari, Arabian Ranches and Jumeirah Bay Island. 

To sum it all up, Dubai remains a highly competitive option compared to global cities like Sydney, Singapore, London, New York and Shanghai. The emirate offers world-class luxury living standards at a price far more affordable than any other cosmopolitan city in the world. Hence, investing in Dubai’s luxury properties remains a lucrative option for investors and HNWIs worldwide. 

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