Affordable luxury residential sector, a key segment driving Dubai’s overall real estate boom, is expected to see a sustained strong demand growth on the back of a steady stream of wealthy individuals flocking to the city, lured by its charm as a safe and booming luxury haven.
More developers are coming forward to unlock the potential of this market segment, which is facing a supply shortfall due to fast growing demand from millennials who are ready to pay more for less space in prime neighbourhoods, property consultants said.
Dubai’s luxury properties will remain strong in the second half of 2023 and will be the fastest-growing market among all the major cities around the world on the back of the continued inflow of millionaires, with the market facing a supply shortage of high-end units.
Savills Research predicts that prices of prime residential property in Dubai will increase between 6 to 7.9 per cent in the second half of 2023, the fastest pace in the world, followed by Singapore and Bangkok. Benefiting from the continued relocation of professionals and millionaires, Dubai will remain a sought-after destination for overseas investors, analysts said.
Kalpesh Kinariwala, founder of Pantheon Development, a leading player in the affordable luxury home space, says he is highly optimistic on the Dubai real estate market. “The resilience of Dubai’s realty sector, especially post-lockdown, vouches for its potential to create long-term value. It is a market that rewards innovation and quality, the two tenets that we stand by,” he said, adding that the new projects will continue to nurture and redefine the affordable luxury as well as luxury property space in Dubai.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - September 2023