Dubai’s luxury residential market anticipates a global-leading growth rate of 13.5% in 2023

December 12, 2023
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▪ Luxury Penthouse in Bulgari Resort sells for AED 122 million, amid booming prime  property market (15th May)

A luxury penthouse in the Bulgari Resort and Residences in Dubai has been sold for AED 122 Mn (US$ 33.2 Mn), making it one of the most expensive ready penthouses sold in the emirate. The four-bedroom penthouse offers stunning views of the Dubai skyline and Bulgari Marina. Prime residential areas of Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island accounted for 64% of luxury home sales during this period. Dubai’s real estate market has been ranked as the world’s fourth most active market in the luxury residential segment.

Read more at Luxury penthouse in Dubai sells for $33m as prime market booms (thenationalnews.com)



▪ Dubai’s luxury residential market anticipates a global-leading growth rate of 13.5% in 2023 (16th May)

Dubai has emerged as a leading global luxury hub, witnessing a significant increase in the average prices projected to grow by 13.5% in 2023 as mentioned in Knight Frank’s latest report. This growth is fueled by a demand-supply imbalance, positive economic growth, and Dubai’s reputation as a safe haven. The relative affordability of prime homes, selling at around ~AED 2,938 (~US$ 800) per square foot, adds to the city’s appeal. Luxury home sales reached AED 6 Bn (~US$ 1.63 Bn) in the first quarter of 2023. The market continues to see strong demand, as evidenced by notable transactions such as the sale of a record-breaking land plot in Jumeriah Bay Island and a luxury mansion at Tilal Al Ghaf. Residential prices in Dubai experienced annual growth of 13%, driven by demand for ready homes in the luxury segment. Palm Jumeirah witnessed a 14% and 53% increase on a QoQ and YoY basis, showing notable performance.

Read more at Dubai’s luxury residential market forecast to grow 13.5% in 2023 amid higher demand (thenationalnews. com)

▪ Binghatti partners with Bugatti to launch new luxury residential project in Dubai (15th May)

Dubai continues to witness the launch of remarkable residential projects, this time with the introduction of Bugatti Residences by developer Binghatti. Following the successful Pagani and Aston Martin projects, this collaboration will bring Bugatti’s iconic brand into the world of luxury real estate. Details about the project, including its size, pricing, and completion date, are yet to be disclosed and will be unveiled on May 24. Binghatti aims to capture the essence of Bugatti’s unique and exceptional automotive design for those that understand the exceptional experience that comes with it. The partnership reflects a shared commitment to a specific lifestyle and a dedication to creating extraordinary experiences.

Read more at Dubai’s Binghatti confirms another hyper-luxury project, this time with Bugatti | Property – Gulf News

▪ Prestige One Developments launches luxury apartment projects in Dubai to meet growing demand (16th May)

Prestige One Developments recently launched 2 new luxury residential projects in Dubai Sports City and Jumeirah Village Circle to meet the increasing demand for premium residential real estate in the emirate. The projects have been named Vista and The Residence, offering a range of high-quality amenities and sustainable design features. Vista is a 140-unit development with a mix of studios, 1-, 2-, and 3-bedroom units. The Residence project is spread over 160.8k Sqft of plot area and structured as a B + G + 5 floors + roof building. The CEO announced that this is the first phase of 250 units out of a planned 1,000 apartments for the year, with an investment of approximately AED 1.8 Bn. The company aims to develop and build an additional 5,000 residential units in and around the UAE over the next five years.

Read more at Prestige One launches two new luxury projects in Dubai (zawya.com)



▪ Dubai Real Estate market records over AED 2 billion in transactions on Monday 15th May (16th May)

According to data released by Dubai’s Land Department, the real estate market in Dubai recorded 638 sales transactions totaling AED 1.79 Bn, along with 116 mortgage deals worth AED 188.46 Mn and 17 gift deals totaling AED 29.45 Mn on 15th May. The sales included 599 villas and apartments worth AED 1.45 Bn, while 39 land plots sold for AED 335.3 Mn. Mortgages involved 91 villas and apartments worth AED 148.57 Mn and 25 land plots valued at AED 39.89 Mn. In total, the real estate transactions for the day exceeded AED 2 Bn.

Read more at Dubai records over $544mln in realty transactions on Monday (zawya.com)



▪ Futuristic floating Dubai Healthcare City Island, redefining medical complexes with cutting-edge technology and luxurious amenities (17th May)

Dubai Healthcare City Island, designed by Kalbod Design Studio, is a futuristic and technologically advanced medical complex in Dubai. It breaks the traditional concept of hospitals by offering a multi-functional floating complex that combines quality healthcare with cutting-edge technology offering 14 healthcare towers and 24 hotels. The crescent-shaped island features intricate Islamic geometric design and aims to provide a luxurious 5-star destination experience. The complex includes an underwater transportation system, green- lined residences, educational and development facilities, and a monorail system for efficient movement. Divided into three zones, the island encompasses medical facilities, residential areas, educational and research centers, and lush green spaces.

Read more at Not an island for millionaires, but this is Dubai healthcare city – A floating island concept with its own underwater transportation system that is designed to provide state-of-the-art healthcare to the residents of the emirate – Luxurylaunches

▪ Dubai’s residential property market in 2023 shows continuous growth in both sales prices and rents, with no yield compression for investors (16th May)

Rents have risen in line with capital value growth, exceeding the previous peak of 2014 by 8%. Villa rents on Palm Jumeirah have increased by 31% in the first quarter 2023 compared on a YoY basis and since the start of the pandemic rents have witnessing an increase of over 110%. Apartment rents have also grown by 26% since last year with Palm Jumeirah and Business Bay experiencing the highest increase at 34% and 31% respectively. In terms of sales prices, values have increased by 5.6% in Q1 2023, with villa prices equaling their 2014 peak and apartments trailing by 18%. Knight Frank expects Dubai’s prime residential market to have the highest growth rate globally at 13.5% in 2023.

Read more at No yield compression on Dubai rents: Knight Frank (zawya.com)



▪ Realiste’s platform Index can now predict 5-year real estate prices (17th May)

Realiste has announced significant updates to its platform, “Index,” which utilizes AI technology to predict real estate prices up to five years in advance. The platform now offers comprehensive five-year market forecasts for all buildings, including potential growth. It introduces a new PRO access level, providing a two-year forecast for all users, along with PDF brochures, building ratings, historical event tracking, and additional layers such as water, greenery, and development stage. Realiste’s AI solutions, including “Index” and “Portfolio,” revolutionize the real estate market by offering data-driven insights and portfolio management capabilities. The company’s commitment to innovation and providing precise, real-time data aims to empower investors and industry professionals in making profitable investment decisions.

Read more at UAE based AI company unveils unprecedented real estate price prediction capability for the next 5 years (zawya.com)



▪ Aldar Investment Properties Raises US$ 500 million through debut Green Sukuk for sustainable growth (18th May)

Aldar Investment Properties, has raised US$ 500 Mn (~AED 136.1 Mn) through its first green sukuk issuance, with proceeds to be used for sustainable projects, including green buildings, energy efficiency upgrades, water management, pollution control, and renewable energy sources. The issuance received strong interest from local, regional, and international investors and was oversubscribed four times. Aldar aims to become a net-zero carbon business by 2050 and aligns with the UAE’s net-zero by 2050 strategic initiative.

Read more at Aldar Investment Properties raises $500m from debut green sukuk (thenationalnews.com)



▪ Dubai’s Affordable Real Estate Market Attracts Global Investors Seeking High Returns (19th May)

Dubai’s real estate market is attracting global investors due to its affordability and high return on investment (ROI). Despite a notable increase in property prices, Dubai remains more affordable compared to cities like London, Hong Kong, and Paris. The city’s multicultural environment and infrastructure developments have driven demand from both expat and local buyers. Dubai’s prime residential properties are nearly six times cheaper than Hong Kong and London, and about four times cheaper than Paris. Additionally, Dubai offers an attractive rental yield, with studio apartments yielding 7-10% and one-bedroom apartments up to 8%. Financing options through mortgages are also comparatively affordable, with lower interest rates than the global average. Overall, Dubai’s real estate market presents a promising opportunity for homebuyers and investors seeking affordability and high returns.

Read more at Are property prices in Dubai high for the average homebuyer? – Arabian Business

▪ India’s ultra-wealthy population expected to surge by 58.4% in the next five years, says Knight Frank report (18th May)

A recent report by Knight Frank suggests that India’s ultra-wealthy population, consisting of individuals with fortunes over US$ 30 Mn, is projected to increase by 58.4% over the next five years. The report predicts a rise of ultra-high net-worth individuals (UHNWIs) from 12.1k in 2022 to 19.1k in 2027. Additionally, India’s high net-worth individuals (HNWIs) with assets valued at US$ 1 Mn or more are expected to grow by 107%, reaching 1.65 Mn by 2027, attributed to the country’s development in core and non-core industries, which has created significant potential for economic growth. Asia is also projected to see a 40% increase in its UHNWI population, surpassing Europe and ranking second globally, with India contributing to this growth.

Read more at Knight Frank predicts India’s ultra-rich population to increase by 58.4% in the next five years FXCompared. com

▪ Azizi Developments sells over 90% of units in Dubai Studio City’s Beach Oasis Project (19th May)

Azizi Developments has achieved a remarkable sales milestone, selling more than 90% of its residential units in the Beach Oasis project located in Dubai Studio City. The project comprises of 712 units, including 476 studios, 200 one-bedroom apartments, and 36 two- bedroom residences. The modern low-rise community offers a range of amenities such as a beach-like swimming pool, gymnasiums, landscaped gardens, children’s play areas, and a central square with retail options. CEO Farhad Azizi expressed pride in the project’s success and announced the upcoming release of the remaining one-bedroom units. The strategic location provides excellent accessibility and proximity to various attractions.

Read more at UAE: Azizi sells over 90% of Beach Oasis residential units (zawya.com)



▪ Realiste Identifies Top Risks and Strategies for Dubai Real Estate Investors (19th May)

Realiste, an AI-powered property company, has highlighted the five key risks faced by investors in Dubai’s real estate market. Using AI data and insights, Realiste aims to assist investors in navigating the dynamic market in the UAE. The identified risks include challenges in property resale due to the dominance of realtors, market volatility, high service charges, hype projects and locations, and the price disparity between off-plan and secondary market properties. Realiste advises investors to factor in these risks and suggests strategies to mitigate them, such as calculating selling costs, considering the market growth potential, accounting for service charges, and diversifying investments between the primary and secondary markets.

Read more at Dubai real estate buying tips: 5 risks to avoid – Arabian Business



▪ Dubai Real Estate sector records 3,105 transactions worth AED 9.1 Bn in a week (20th May)

In the week ending May 19, Dubai’s real estate sector experienced a total of 3,105 transactions valued at AED 9.1 Bn (US$ 2.5 Bn). This included the sale of 191 plots for AED1.14 Bn and 2,284 apartments and villas for AED 6.03 Bn. The top 3 transactions involved land plots in Island 2 (AED 135 Mn), Business Bay (AED 50 Mn), and Hadaeq Sheikh Mohammed Bin Rashid (AED 50 Mn). The top transfers for apartments and villas involved properties in Island 2, Palm Jumeirah, and World Islands, with prices ranging from AED 74 Mn to AED 122 Mn. Additionally, AED1.68 Bn worth of properties were mortgaged during the week, with the highest mortgage recorded for a land plot in Business Bay for AED 350 Mn. Finally, about 77 properties valued at AED 264 Mn were transferred between first-degree relatives.

Read more at Dubai real estate: $2.5bn of property deals this week – Arabian Business

▪ Maximize benefits with investing in Off-Plan Apartments in Dubai (19th May)

Investing in Off-Plan apartments in Dubai offers several advantages for investors. The city’s thriving real estate market provides significant rental returns and financial profits, particularly when buying pre-construction properties. Off-plan homes, being unbuilt, can safeguard assets and offer opportunities to take advantage of developer incentives like discounts and flexible payment plans. Many complexes feature attractive amenities such as pools and gyms, which enhance rental rates. Conducting thorough research on the local market is essential such as location considerations, financing options, understanding the legal process, and making informed investment decisions are key factors for success in Dubai’s Off-Plan apartment market.

Read more at Unlocking the Potential of Off-Plan Investments in Dubai – TechEngage