Dubai’s luxury real estate outpacing London and LA
Dubai’s luxury property market outshines London and Los Angeles in attracting the world’s elite with record homes sales valued over $10 million.
2 min
According to industry insiders, the city leads globally in luxury property transactions and branded residences. They also highlight Dubai’s remarkable growth in the high-end residential sector, drawing comparisons with established markets such as London and LA.
The city’s appeal to buyers is attributed to its political stability, attractive wealth management policies, and lifestyle offerings, positioning it as a top choice among the world’s wealthiest alongside major global cities.
Experts also note a significant shift in the luxury market dynamics post-2020, driven by the pandemic, geopolitical unrest, and a quest for safer environments, enhanced living standards, and tax benefits. This has led to a surge in demand for luxury properties in Dubai, surpassing other cities in this segment. And the competition among developers to offer superior quality and serviced properties, which has further stimulated market growth.
They also see that Dubai has matched the quality and prestige of cities like London, LA, and New York. The city has witnessed a 33 percent increase in property prices since the pandemic, with rental rates also on the rise, offering higher yields compared to cities like Paris and Singapore. Dubai continues to expand its luxury real estate offerings, including branded residences from internationally renowned brands, enhancing its appeal to global buyers.
In addition, experts point out the growing international interest in Dubai’s real estate market, with a notable influx of European investors. The demand for privacy, space, and luxury amenities is on the rise, with projects catering to these desires, such as luxury beachfront villas, attracting attention from high-profile clients.
The variety of nationalities among buyers, valuable investment policies, and Dubai’s strategic position geographically all play a role in its increasing attractiveness. And initiatives such as the Golden Visa residency program aim to further boost the city’s appeal to overseas investors. Additionally, with anticipated population growth and a strong yearly forecast for growth in the residential market, Dubai is poised to maintain its rising status in the international luxury real estate scene.
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
Villa prices saw particularly strong growth, with capital values increasing by 33.4 percent year-on-year
< 1 min
Dubai’s real estate market showed strong performance in the second quarter of 2024, with notable increases across the residential, office, and retail sectors, according to a new ValuStrat real estate report for Q2 2024.
Villa prices experienced particularly strong growth, with capital values rising by 33.4 percent year-on-year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat said: “The Dubai real estate market has shown impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.
“Despite severe flooding caused by record rainfalls in April, the quick and effective response from developers and authorities helped to control the damage, ensuring that market activity and property valuations remained robust in the subsequent months.”
The office sector also performed well, with the VPI for office capital values surging by 31.7 percent annually and 9.4 percent quarterly, reaching 212.5 points—the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 percent occupancy in their prime mall assets, while overall mall occupancy stood at 96 percent during the first quarter of 2024. The hospitality sector also saw growth, with total international guests reaching 8.12 million as of May 2024, a 9.9 percent increase compared to the same period last year. Hotel occupancy reached 81 percent, rising by 1.4 percent year-on-year.
Despite these positive indicators, Tuaima added, “The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
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
