In 2022, Dubai’s real estate market experienced a boom in demand from foreign buyers. The investment increased by 80%. Wealthy investors are attracted by the most expensive and fashionable locations, where you can earn on a 30-40% rise in property prices or get a stable rental income in a few years.
The United Arab Emirates has attracted huge investments, including in real estate, over the years. Many initiatives by the authorities are aimed at this. The UAE in general and Dubai in particular are actively working to ensure this trend continues.
Most of the investment is in luxury real estate, and this has already led to a significant rise in prices. According to analysts, from 2021 to 2022, new buildings in the most expensive areas of Dubai rose by almost 89%. This growth rate was higher than in Miami (+31 percent) and Tokyo (+17 percent), which are the second and third largest. Prices are now beginning to stabilize, but for example, analysts at Metropolitan Group believe that in 2023 the demand for real estate in Dubai will remain high, and prices in this segment will rise by another 10-20%.
In the fall of 2022, Webster Pacific ranked Dubai’s neighborhoods in an unusual way, calculating how many millionaires live in one location or another. The Jumeirah, Al Barsha, and Arabian Ranches districts were the leaders in terms of the number of wealthy residents. About 40% of Dubai’s millionaires reside in these three locations.
The total number of people with more than a million dollars in Dubai is about 68,000. Dubai is also home to about 40 billionaires.
What attracts the wealthy three most prestigious districts of Dubai? Its features and characteristics. For example, the location of Jumeirah is interesting for its proximity to both the sea and the city center; the area of Arabian Ranches is appreciated by lovers of expensive hobbies – golf and equestrian sports.
Let’s focus on the main features of Dubai’s most famous high-end districts.
The Palm Jumeirah artificial island area is one of the most popular and expensive in Dubai. Last year, the cost of renting apartments here increased by 22%, and villas – by 32%.
The main feature of the area is the fact that it is located on an artificial island, which has become one of the most recognizable locations in Dubai. Another advantage is its location on the coast and close to the business center. A monorail line leads to the mainland.
Tourists in this area are attracted by luxury hotels, apartment complexes, and water-related entertainment. There is a museum of the underwater world, a dolphinarium, a water park, diving center.
In the Palm Jumeirah area, you can buy both a private villa and apartments. Cost – from 3,500 dollars per square meter, but the closer to the water, the more expensive.
Mall of the Emirates, where the indoor ski resort is located, became the district’s hallmark. Al Barsha also hosts the world’s largest butterfly park and botanical garden, Dubai Miracle Garden, with unique plant compositions, many of which are in the Guinness Book of World Records.
Dubai Marina is built around a man-made bay and attracts tourists to Dubai Marina Mall’s extensive, landscaped promenade and shopping center. When all 200 skyscrapers are completed, Dubai Marina is set to become the world’s largest artificial harbor.
Prices here, as in Palm Jumeirah, depend on location relative to water. On the first line, the cost of a square meter can exceed $ 20,000. The floor on which the apartment is located also influences the price. Some skyscrapers here are over 300 meters high, which, of course, also affects the price. The average per square meter of one bedroom apartment is around $3,300.
This elite district of Dubai attracts people interested in buying villas rather than small apartments. There are many family buyers who need the format of comfortable suburban life, as well as opportunities for the realization of expensive hobbies. For example, next to clusters of villas is an international golf club on 18 holes.
The demand for luxury property in Dubai has been growing for several years – and this is the result of a planned government policy to attract foreign investment. High-income UAE citizens prefer locations such as Jumeirah First, Al Barsha, and Arabian Ranches. Whatever elite area you choose, you can expect price increases of another 10-20% in the next couple of years due to high demand. Also, apartments and villas in Dubai’s most expensive areas can bring a stable income of 5-8% per year and become a good option for investment.