The UAE has established its position as a leading global destination for luxury living, as it has succeeded in attracting individuals with high wealth and superior wealth to its real estate market, so that the country occupies a privileged position and the first choice for the rich in the luxury real estate market, according to a recent report by Forbes.
The report pointed out that Dubai in particular and the UAE in general attracted the attention of global investors and wealthy migrants, thanks to luxury real estate, tax benefits and advanced infrastructure, and the UAE’s strategic location in the Middle East, also contributed to attracting about 6,700 new millionaires in 2024.
Sustainability Criteria
Forbes highlighted the most prominent trends that will shape the movement of the real estate market in the UAE during the current year and beyond, and the leading role of the country in this scene, as sustainability is the new standard of luxury in real estate, as investors are keen to know the environmental impact of the properties they invest in, which has made environmentally friendly initiatives an essential element in luxury real estate development projects.
As part of the UAE’s ambitious strategy to achieve carbon neutrality by 2050, along with growing market demand, sustainable properties have added value and are characterized by the use of sustainable building materials, renewable energy technologies and innovative waste management solutions. Real estate developers in the UAE are moving at an accelerated pace towards committing to sustainable projects, such as energy-saving skyscrapers and integrated environmental communities, such as wasl 1 and Dubai Creek, which rely on green roofs, solar technologies, and advanced water-saving systems.
Smart Homes
Innovations are no longer limited to sustainability, as technology plays a pivotal role in redefining the expectations of the wealthy from their homes. Comfort and ease have become key foundations of well-being, as smart homes equipped with artificial intelligence systems are driving this distinctive transformation.
These homes are expected to allow owners to easily control lighting, temperature, entertainment and security via voice commands or mobile smart devices, and by 2025, these technologies are expected to witness further development and innovation.
Artificial intelligence technologies provide homes with the ability to predict the needs of residents without the need for direct intervention, through predictive maintenance, automatic climate control, and efficient household inventory management. Biometric and exit systems and continuous monitoring also contribute to unprecedented security levels, raising the standards of comfort and safety in these future homes.
Iconic sites
The Forbes report confirmed that innovative real estate projects in desirable locations have always been the essence of the UAE’s attraction, from luxury penthouses in downtown Dubai to the green neighborhoods in Dubai Hills and Palm Jumeirah real estate, these locations embody the highest standards of luxury living. Future projects, being developed in collaboration with international architects and leading brands, will contribute to this trend, including the innovative EWA project on the Dubai Water Canal at Business Bay, in addition to the Wayne Al Murjan Island project in Ras Al Khaimah at a cost of $3.9 billion, which blends living and entertainment spaces with world-class facilities.
Investment Opportunities
Forbes stressed that the attractiveness of luxury real estate in the UAE is not limited to providing ideal homes in international locations, but also includes investment advantages, as the UAE government offers encouraging policies, such as granting long-term residence to high-wealth real estate investors, through programs such as the Golden Visa, and the real estate market in the region is a stable investment with high returns, with the opportunity to benefit from a growing secondary market.
According to Knight Frank’s Wealth Report 2023, Dubai was the second most attractive destination for residential investments globally after the United Kingdom, superior to the United States, France and Switzerland.
The annual report of the “Bayut” real estate market 2023 also indicated that rent rates in Ras Al Khaimah increased by 9.37% for villas and 10.5% for apartments, while selling prices increased by 3.55% and 8.5% respectively.
With total rental returns of between 6 and 10% in Dubai, compared to less than 5% in London or New York, this upward trend is expected to continue, boosting continued investment and migration to the UAE.
Brand Residences
The real estate development sector in the UAE is witnessing an increasing trend towards the construction of branded housing. In Dubai alone, partnerships with prestigious brands contributed to sales of more than 25 billion dirhams in 2022, an increase of 80% compared to the previous year, with the addition of more than 2,000 new units in 2023.
Branded residences are a major growth strategy in Ras Al Khaimah, as future developments include a collaboration with Waldorf Astoria, Aston Martin, Tonino Lamborghini and others to add more than 5,000 units between 2026 and 2029.
Future Outlook
The Forbes report provided an overview of the real estate market forecasts for 2025, which indicate the continued development of this sector after 2025, with the emergence of new trends such as technology integrated with artificial intelligence, virtual viewing experiences for properties, partoperty, and common housing spaces.
Artificial intelligence technologies allow real estate companies to analyze data and insights to make strategic decisions that increase investment returns for each project. Virtual reality and digital copying technologies also offer global investors the opportunity to explore all aspects of real estate remotely, from architectural design to finishing.