Dubai realty becomes a luxury asset class

Dubai has emerged as one of the top destinations for real estate investment for global smart investors ahead of New York, London, and Paris. Dubai’s real estate market has become a luxury asset class with price standard of $10 million and above. Luxury real estate has become the new global currency. The City of Wonders is on the global sophisticated and smart investor’s radar, who want long-term stability in their portfolio with luxury real estate investment. These insights were shared by Kashif Ansari, Co-founder and group CEO Juwai IQI, which is the international real estate technology group that powers property transactions and ownership locally and globally, told Gulf Today. Ansari cited the latest market report from Knight Frank that  the market value of sales of $10m plus properties rose to $3.1 billion in the first half of this year, from $3.9bn raised in the whole of 2022. The value of prime residential real estate rose 44 per cent last year, with a further 11 per cent rise in the first half. This is simply remarkable and provides a clear validation that dubai property market is booming. Moreover, he added residential property prices have risen around 17%, average rent is up 23% YTD in 2023. In June 9876 residential units were sold higher than 18.8% from the previous year. Off plan sales market remained attractive as well with 45% increase. Furthermore, sharing the market data report with the average apartment price per square foot reached Dhs1,294  ($352.31), and villas averaged Dhs1,525  per sq ft. Lot of family offices, technology companies, manufacturing and oil and gas companies are setting up offices, real estate investment in dubai. Dubai is the new oil and gas hub according to the latest report from Financial Times dated July 20/2023. Juwai IQI market outlook for Dubai real estate is buoyant with double digit capital appreciation in both new, off plan and rental market. Most of the global market investors are relocating their investments to Dubai real estate market. “We expect Dubai real estate market to attract $25 to $35 billion investment in the next 12-18 months. Dubai remains on the global investors radar for the next many many years as the real estate market is booming with double digit growth,” Ansari concluded.