The real estate sector in the UAE represents a destination for wealthy people from all over the world, whether for living and housing purposes, doing business, or investing in this promising sector.
The UAE has established a strong regulatory framework for the real estate sector, which enhances its attractiveness to capitalists and wealthy people from around the world, and guarantees them a profitable investment, in addition to providing many preferential benefits that include income tax exemption, golden visas, and a luxurious lifestyle.
International reports and studies confirm the status of the real estate sector in the UAE, as a factor of attraction for wealthy people on the one hand, and a beneficiary of other attractive factors enjoyed by the country’s economy, on the other hand.
The reports pointed to the exceptional and safe investment opportunities enjoyed by the real estate sector in the country, and to the optimistic expectations for its growth in the coming years, due to the increasing and exceptional demand; as the UAE ranked among the top ten for those planning to buy a home, according to the wealth report issued by Knight Frank, the global real estate consultancy.
Dubai retained its position as the world’s top market for home sales over $10 million, according to the company’s latest report, with New York and Hong Kong coming in second and third, respectively.
High net worth individuals are set to spend $4.4 billion on residential properties in Dubai this year, according to a Knight Frank survey of 317 high net worth individuals, including 217 millionaires from around the world and 100 residents of the Gulf Cooperation Council countries.
The survey indicates that high net worth individuals around the world are set to spend $408.3 million on residential properties in Abu Dhabi and $388.5 million in Ras Al Khaimah, for a total of $797 million. The net worth of the high net worth respondents in the survey is $5.4 billion, and they own 1,147 homes around the world.
The UAE real estate market is expected to exceed $700 billion by the end of 2024, with the residential real estate sector taking the lead amid expectations that it will exceed $400 billion in the same period, according to a report by the global platform “Statista”, which indicated that the UAE real estate market is witnessing a boom in demand for luxury properties, due to the increasing number of high-net-worth individuals looking for investment opportunities; as it is expected to achieve a steady annual growth rate of 3.03% between 2024 and 2028, leading to a market size of about $800 billion at that time.
The UAE market recorded growth in prices and transaction volumes in 2023, amid expectations that transaction volumes will continue to grow in Abu Dhabi until the end of 2024, and that prices will continue to grow in the apartment and villa sectors in Dubai, according to “CBRE”, a global real estate company.
The country’s residential market has maintained an upward trajectory, with unprecedented transaction levels in 2023, and the trend is expected to continue this year, according to Deloitte. Henley & Partners, a global consulting and professional services firm, believes that the UAE will once again top the list of leading destinations for the world’s wealthy in 2024, with more than 6,700 millionaires expected to flock to the country, more than any other country in the world, according to the firm’s latest report.