Does Dubai’s luxury property market still offer opportunities for investors?

Investors looking to enter Dubai’s luxury property market this year will need to brace themselves for what could be a record year for capital values.

Even as the pandemic-fuelled global property boom begins to abate, UAE demand is being helped by a limited supply of homes at the top end of the market, visa reforms and the role of property as a hedge against inflation.

“The uptick in the market since 2021 is still continuing, making many valuators and sellers price properties in anticipation of an upward trend,” says Chris Whitehead, managing partner at Luxhabitat Sotheby’s International Realty, which sold two of the top-value villas this year.

“This, combined with the reduced supply in the luxury properties segment, means there is at least a 3:1 ratio of buyer to a sought-after property.

"Naturally, this results in each transaction pushing the boundaries furthermore, which is why we are seeing more and more record transactions.”