Luxury real estate in Dubai is catching up to New York and Los Angeles

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Dubai is coming up to New York and Los Angeles in terms of luxury real estate.

Dubai is the busiest luxury real estate market in the world, followed by New York, Los Angeles, and London, as a result of the influx of wealthy investors looking for safety from the geopolitical and economic upheaval occurring throughout the world.

The Middle Eastern economic powerhouse sold 219 properties last year for $10 million or more, according to real estate firm Knight Frank. In contrast, New York reported 244 agreements totalling $10 million or more, Los Angeles 225 contracts, and London 223 agreements. Dubai was the sixth busiest city for sales of $25 million or more, with 26 transactions.

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The city is also becoming a popular choice for hedge fund traders, who are enticed by its tax-free status, simplicity of conducting business, and attraction as a center for international travel. According to Knight Frank, little over one-third of Middle Eastern people with the ultra-high net worth will see an increase in wealth of more than 10% in 2022.

Even yet, Dubai is among the “cheap” luxury house markets in the world, coming in at number 16 among Knight Frank’s top 20 global prime residential markets. real estate

“Dubai’s market still represents outstanding relative value,” said Andrew Cummings, head of prime residential at Knight Frank. “It is this value that continues to drive UHNWI buyers into our market, most of whom are seeking a sun-sand-sea lifestyle that is now synonymous with Dubai. The city’s appeal stretches right across the world.”

Cash purchasers are becoming more common in Dubai. According to Durrani, in 2022, nearly 80% of Dubai’s property transactions by value were made in cash, up from 50% in 2007 and 40% in 2021.

Russians made up the majority of foreign buyers of Dubai real estate in 2017, according to Dubai-based brokerage Betterhomes in January.

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