The World’s Wealthy Willing To Spend $4.5 Billion On Dubai Property – Knight Frank – Wealth Briefing

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The World's Wealthy Willing To Spend $4.5 Billion On Dubai Property – Knight Frank

The report comes at a time when Dubai is continuing to push its credentials as a wealth management, banking and family offices hotspot, competing with rival hubs such as Hong Kong and Switzerland.

High net worth individuals around the world are prepared to spend
$4.4 billion on residential real estate in Dubai, a report says
underscoring how the Gulf jurisdiction remains a property
hotspot.


Buy/sell, rent/lease residential &
commercials real estate properties.

Dubai has taken pole position as the most preferred emirate in
the UAE for HNW individuals globally to purchase real estate. Abu
Dhabi ranks second, while Sharjah has secured third place this
year, according to property consultants Knight Frank.

The desire to own a home in Dubai rises from 28 per cent for
those with a net worth of $2 to $5 million to 78 per cent for
those who are worth more than $15 million. 

The jurisdiction has seen its fortunes wax and wane since before
the 2008 financial crash. In recent years, it has been in the
ascendant, launching a
hub for family offices
, for example, and acting as a magnet
for expats of various nations, including those from the UK.
Increasingly, Dubai and nearby jurisdictions are seeking to
compete against traditional wealth centres such as Switzerland,
Singapore, and Hong Kong. In 2020 the UAE entered the “Abraham
Accords” with Israel (as did Bahrain), widening capital and
intellectual property flows between these jurisdictions.

Knight Frank’s second annual 2024 Destination Dubai report is
based on a survey of 371 HNW individuals – 217 outside the Gulf
region and the remaining 100 in the Gulf Co-Operation Council
group of countries. Together, the respondents have a net worth of
$4.5 billion, and they own 1,147 homes in different parts of the
world.

“Dubai remains the number one destination for the global HNWI
community. Not only has the city cemented its status as the
busiest $10 million+ home sales market in the world, but HNWIs
continue to clamour for the ‘Dubai life’ and property at the
upper echelons of the price spectrum in the emirate is a hotly
contested commodity,” Faisal Durrani – partner and head of
research, MENA, Knight Frank, said. 

“This [upper] segment of the market is what truly dictates how
prices across the mainstream market behave. Last year, total
residential transactional volumes approached a record 120,000
deals, worth around $95 billion, yet $10 million+ home sales
accounted for only 8 per cent of this figure, by total value of
sales,” Durrani said. 

“What is truly extraordinary however is the average budget for
ultra-high net worth individuals considering a Dubai property
purchase. 25 per cent are prepared to spend between $60 and $80
million on a home in the city, while a further 16 per cent would
like to spend over $80 million. Meanwhile the average budget for
this exclusive cohort stands at $58.5 million,” Durrani added.

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