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The cost of buying real estate in Dubai has significantly gone up on the back of strong investor interest and high influx of millionaires.
Residential property values in the emirate went up by 14% during the second quarter of the year, as the economy continued to pick up, state reforms boost home ownership trends and high-net-worth individual (HNWI) population expanded, according to CBRE Middle East.
Leading the growth in values are properties in premium neighbourhoods which continue to record significant increases.
The first six months of the year demonstrated high buying activity within the residential real estate market, particularly in the off-plan segment, with overall transactions rising by 23% year-on-year. Sales during the period totalled AED 270 billion.
The commercial real estate services and investment firm said that initiatives like Dubai’s “First-Time Home Buyer Program” have stimulated property demand and encouraged home ownership.
“The UAE is poised to attract a record number of millionaire migrants in 2025, fuelling demand, particularly in the luxury and off-plan sectors,” CBRE noted.
The UAE’s millionaire population has expanded in the last few years, as many HNWIs left wealth hotspots overseas. This year, more than 9,800 millionaires are expected to relocate to the UAE, according to Henley & Partners.
(Writing by Cleofe Maceda; editing by Seban Scaria)
