According to a report released last year, the UAE is currently residence to 92,600 individuals with a net worth exceeding $1 million, as well as 251 individuals with a net worth surpassing $100 million.
Knight Frank's inaugural Destination Dubai 2023 report has revealed that among millionaires, Downtown, Palm Jumeirah, and Dubai Hills Estate are the three most sought-after areas to purchase properties in Dubai.
The report states that wealthy individuals from around the world have been actively targeting Dubai's luxurious homes, primarily located in the city's most expensive districts. With 37 percent and 30 percent of survey respondents expressing interest, respectively, Downtown and Palm Jumeirah emerged as the top-choice neighborhoods. The study surveyed 183 high-net-worth individuals with a net worth over $3 million, excluding their primary residence, and collectively, they own 851 homes worldwide with a combined net worth of $3.2 billion. Additionally, Business Bay, Emirates Hills, Dubai Marina, Dubai Canal, Jumeirah Gold Estate, Jumeirah Bay Island, and Mohammed bin Rashid City are among the top 10 popular areas where millionaires are purchasing homes to enjoy the safe and luxurious lifestyle offered by the emirate.
The UAE is projected to attract the highest number of millionaire migrants in 2022, surpassing countries like the US, the UK, Switzerland, Canada, and other developed nations, as stated in the Henley Global Citizens Report of June 2022.
According to the Henley report, the UAE is home to 92,600 millionaires with wealth exceeding $1 million, 251 centi-millionaires with wealth exceeding $100 million, and 4,000 individuals with assets of $10 million.
The Knight Frank study reveals that Downtown is the dominant location across all personal wealth brackets. However, Palm Jumeirah and Emirates Hills are the preferred residential purchase locations for UK/European and North American millionaires respectively.
East Asian investors show interest in Downtown, with 35 percent of respondents who visit Dubai once a year considering property purchases in that area. Meanwhile, 30 percent express interest in Palm Jumeirah.
Due to high demand and the popularity of Palm Jumeirah, Dubai has recently relaunched Palm Jebel Ali, which will be twice the size of Palm Jumeirah and feature beaches stretching up to 110 km.
The strong demand in the prime property market and the influx of millionaires have led to substantial increases in luxury property prices. Over the past 12 months since Q1 2022, Palm Jumeirah and Downtown have experienced the highest growth rates for apartments, at 25 percent and 15 percent respectively. Villas on the Palm Jumeirah have seen the largest price gains in the city, with a growth rate of 126 percent since January 2020.
Despite the price increases, Dubai's luxury property prices remain more affordable than those in global cities. With $1 million, one can buy 1,130 sq ft of prime space in Dubai, compared to 184 sq ft in Monaco, 231 sq ft in Hong Kong, 353 sqft in New York, 365 sqft in London, and 458 sq ft in Paris.
Among East Asian investors, Downtown is the overwhelming favorite at 53 percent, followed by Business Bay at 32 percent, according to Knight Frank.
News Source: Khaleej Times