Dubai luxury real estate among the world’s most affordable markets
2 min
Dubai not only achieved a new high with the sale of 431 homes valued above $10 million each last year but also maintained its status as offering more value compared to major cities like London, New York, and Singapore.
Last year, Dubai set a new record by selling 431 luxury homes for over $10 million, while the luxury real estate segment saw a near 16% price increase. Nevertheless, Dubai is considered one of the most budget-friendly locations for purchasing luxury real estate, as stated by global property experts Knight Frank. The Wealth Report from Knight Frank highlighted that prime residential prices were robust in 2023, with Dubai being a standout in the luxury real estate sector.
Out of 100 markets analyzed in the Prime International Residential Index (PIRI) by Knight Frank, 80 showed stable or positive annual price growth. The average increase in luxury prices was 3.1% in 2023, with Manila at the forefront with a 26% increase and Dubai closely following with a 15.9% increase. Following Dubai were The Bahamas at 15%, and both the Algarve and Cape Town tied at 12.3%.
Prime residential values in Dubai, covering areas such as Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island, witnessed unprecedented growth in 2023, starting from a low base, according to Knight Frank.
Faisal Durrani, the Middle East and North Africa Research Head at Knight Frank, noted that Dubai’s luxury real estate market is predicted to grow by 5% in 2024, following a 16% increase in 2023 and a 44.4% surge in 2022.
Durrani highlighted a significant 38.5% reduction in the number of prime homes for sale in Dubai in 2023, mirroring a 52% drop in the Burj Khalifa’s sales inventory. This trend indicates that homeowners are increasingly opting to retain their properties longer, reflecting a shift towards long-term residency and investment in the prime market.
Despite the surge in sales of luxury properties, Dubai remains at the lower end of the scale in terms of the world’s most expensive prime markets. Comparatively, $1 million in Dubai can purchase significantly more residential space than in cities like London, New York, or Singapore, enhancing its attractiveness to the global elite.
Will McKintosh, Regional Head of Prime Residential at Knight Frank MENA, emphasized that Dubai’s residential market has matured, with the city’s appeal bolstered by its relative affordability, safety, and lifestyle offerings. This has attracted international second-home buyers and encouraged residents to establish deeper roots, leading to the development of sought-after communities beyond luxury waterfront properties, such as the balanced lifestyle offered in Jumeirah Islands.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
55-storey residential tower in Downtown Dubai
2 min
Fairmont Hotels & Resorts, a world-renowned luxury hotel brand within the Accor group, has partnered with UAE-based developer Sol Properties to unveil a prestigious residential development in Downtown Dubai, setting new standards in luxury real estate.
The 55-storey Fairmont Residences Solara Tower, the latest addition to Downtown Dubai’s skyline, offers breathtaking views of both the Burj Khalifa and the Dubai Fountain. Construction is currently in progress, with the project slated for completion by the third quarter of 2027.
This development seamlessly integrates Fairmont’s esteemed brand standards in luxury hospitality with Sol Properties‘ extensive expertise in high-end real estate, establishing new benchmarks in urban living. The residences feature meticulously designed spaces, blending elegance with timeless opulence.
Offering a range of spacious layouts and state-of-the-art amenities, these residences epitomize modern luxury living. Expansive terraces provide residents with stunning views of the Burj Khalifa and the iconic Dubai Fountain.
“We at Sol Properties and Fairmont Hotels & Resorts are elated to provide a completely new standard of luxury living in Downtown Dubai,” said its Founder and CEO Ajay Bhatia.
“Our goal is to provide residents with exclusive amenities and personalized services, thereby setting a new precedent for comfort and convenience for end users,” he stated.
“By combining Fairmont’s exceptional hospitality services with our integrated residential environment and attention to quality, this project is certain to offer residents unmatched lifestyle experiences,” he added.
Combining Fairmont’s exceptional hospitality services with Sol Properties’ commitment to quality, this project promises unparalleled lifestyle experiences. The residential development caters to the evolving needs of urban homeowners with a suite of premium amenities and services. Fairmont Solara Tower uniquely stands out by offering private swimming pools in selected apartments.
Residents will have exclusive access to a range of integrated amenities, including gourmet restaurants, fitness centers, and wellness facilities, providing a resort-like experience within their own homes.
Fairmont’s Global Chief Operating Officer Sami Nasser expressed excitement about adding this new branded residence to the Fairmont portfolio. “We are confident that our expertise in the field of luxury hospitality combined with our pioneer approach to residential projects will allow us to redefine the landscape of luxury residences in Dubai and the broader region,” he noted.
The project exemplifies the ongoing expansion and appeal of luxury living in Dubai, especially with the luxury residential real estate market projected to grow by more than 8% by 2029.
“Additonally, the project will redefine the concept of luxury residences with Dubai’s strategic location and investor-friendly regulations, which attract high-net-worth individuals and investors seeking to diversify their portfolios,” said Nasser.
Fairmont Residences Solara Tower Dubai joins a prestigious portfolio of 16 Fairmont-branded residences, with 22 more projects in the pipeline.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
