Dubai is known for its "vibrant culture," modern sky-scraper landmarks, indoor skiing, and scorching summer sun. Now, it is on the path to being one of the most desired hot spots for luxury homes. Wealthy buyers are turning to the home of the Burj Khalifa to complete their lavish lifestyle. Here's why.
Year after year, the H1 2022 market report shows a 17% increase in sales and total buyers in Dubai. The H1 market report summarizes the most recent trends in the innovative economy. This year, there is exceptionally high demand for Dubai's "massive luxury properties." While the term 'luxury' used to fall under square footage, there is now more value to what meets the eye. Outstanding factors from location and climate, "reliable tax-free" property for incoming foreign citizens, and, most importantly, upscaled value for low cost all contribute to the growing demand. For these reasons, big spenders turn to Dubai - "one of the best cities in the UAE" - as they see it as an attractive investment destination. While Dubai offers a range of real estate - from ocean view apartments to opulent villas, the city has seen the most desired outcome from the Covid effect.
While Covid-19 has certainly been a catalyst for change, Dubai's economic transition has produced a better lifestyle for future residents. Before Covid, Dubai saw its super wealthy GCC nationals as the main point of contact for the luxury market. Now, reports show that Dubai is in high demand for Western European buyers, who had not previously given the city a second thought. The combination of modern architecture and innovative aesthetics is highly advantageous. No other city can offer this way of living for such a low price for obvious reasons, such as the zero income tax, "global connectivity," and easy procedures following "business installation." However, buyers spend most of their time investing in the Dubai luxury market. The big question is whether this high demand is in it for the long run. Still, considering its current residents obtaining ultra high net-worth, it is possible the city is nowhere near a downfall.
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As mentioned, luxury living is more than large size and an even larger price. Luxury living post-Covid consists of geographical location, amenities, opportunities, and long-term benefits. There needs to be a stable economic value to the home of a high-demand market. Otherwise, these big spenders would be throwing their money down the drain. Besides Dubai, cities such as London, Zurich, Singapore, and Shanghai are also emerging. Only time will tell what luxury has to offer. Stay tuned.
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