Luxury real estate will rise in price in Dubai

In 2023, the cost of housing in the emirate increased by more than 20%. Despite this, luxury real estate remains undervalued and will increase in value in 2024.

Trends in the real estate market show that after the Covid-19 period, the number of high-net-worth investors from the UK, France and Germany has been steadily growing. This is due to lower prices for luxury and branded housing compared to other global markets.

According to 2023 statistics, record sales of super-luxury real estate were recorded. For example, an apartment in Bulgari Lighthouse sold for a price of AED 420M (USD 114M), a residence in Emirates Hill for AED 749.3M (USD 204M) and a penthouse in Marsa Al Arab for AED 410M (USD 112M). These sales are a result of investors preferring to buy real estate from well-known brands with exclusive amenities and in prestigious areas of the emirate.

Experts believe that despite the large volume of sales, there is a shortage of housing in the luxury real estate market. In 2024, major projects will be implemented, but demand will still outstrip supply. As a result, the cost of luxury residences will grow. With the influx of wealthier investors in the emirate, it is expected that new high-end projects from well-known architects and recognisable brands will emerge. This trend indicates the real possibility of a serious increase in the cost of housing in Dubai in 2024.