Growth of Luxury Real Estate in the UAE: Record Indicators

12:34 am  |  24.12.2023

In 2022, according to Metropolitan Group reports, luxury property prices in the United Arab Emirates doubled, and sales increased by 130%, reaching Dh11 billion. The number of real estate purchase transactions in the country increased more than 10 times compared to the previous year, with the average transaction value being more than 4 million UAE dirhams ($1.2 million).

Stabilization of Real Estate Prices in Dubai in 2023

After impressive growth in 2022, housing prices in Dubai, especially in the luxury segment, stabilized in 2023. Despite a significant increase in supply (88.9%), the shortage of ready-made objects continues to remain relevant.

Metropolitan Group experts highlight the active demand for penthouses, ready-made properties, and residences on the seashore. Popular locations include Palm Jumeirah, Dubai Water Canal, Emirates Hills, and District One. According to the company, 80% of buyers from the CIS and Europe prefer Dubai for investment in premium real estate.

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Evolution of the Concept of “Luxury” in UAE Real Estate

The standards and perceptions of luxury real estate in the UAE, especially Dubai, have changed significantly over the past 10 years. Today, not only the view of the water and the brand are valued, but also intimacy, safety, comfort, aesthetics, and a high level of service. Statistics from the Dubai Land Department confirm that 2023 was the best year in the history of the real estate market in the Emirates.

Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island dominate the luxury housing segment, accounting for 64% of all sales of properties priced over $10 million, with prices reaching AED 8,800 ($2,400) per square foot.

Market Dynamics: Growth of the Real Estate Segment Over $10 million in Dubai

The $10 million+ residential market segment in Dubai is strengthening to become the fourth most active luxury property market in the world.

In the first quarter of 2023, the average transaction price in this category was AED 7,235 ($1,970) per square foot, up 16% from 2022.

The numbers speak for themselves, confirming the trend towards setting new highs this year. Without a doubt, 2024 promises to bring new records, growing in favorable soil for high-yield investments.

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About Metropolitan Group: Leading a Successful Path in the Real Estate Market

Metropolitan Group, operating successfully since 2008, is proud of its high standard of real estate services, consulting, and legal support provided to clients not only in the UAE but also in other countries of the world.

In 2022, Metropolitan Group earned a well-deserved position among the top five employers in the Middle East mid-market category in the global Best Workplaces™ ranking.

Metropolitan Group includes four organizations, including three full-service real estate agencies (Metropolitan Premium Properties in Dubai, Metropolitan Capital Real Estate LLC in Abu Dhabi, and Luxury Immobilien GmbH in Vienna) and the consulting agency Metropolitan Consulting FZE.

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In September 2022, the company expanded its activities with the launch of a new division, Penthouse. ae, targeting high-net-worth investors interested in ultra-luxury properties starting from AED 20 million ($5.5 million). In December, the launch of the Metropolitan Homes brand, focused on the secondary real estate market, was announced.

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