About 2,000 high-net-worth individuals relocated to Dubai in the first six months of 2021.
A huge influx of millionaires in Dubai has played an important part in the residential property market boom, witnessed in the emirate recently. Since 2020 several ultra-high-net-worth individuals has purchased USD 8 million plus apartments and villas in Dubai.
According to some reports, 2021 has already registered 30 residential property deals, each worth minimum USD 8 million. And least three wealthy buyers with more millions of dollars to spare have bought ultra-luxury properties priced from USD 27 million.
In 2020, when the COVID-19 pandemic caused the mass shift to working from home and private space became more valuable, at least 31 properties in the same price category were also transacted.
The volume of prime property transactions registered in Dubai in 2020 and 2021 is higher than in the previous years, before the coronavirus situation. In some of the most desirable locations, 80 percent of the homes sold were valued at over USD 8 million. The average value of the transaction has gone up compared to the last couple of years, because many ultra-high-net-worth individuals are moving to Dubai.
A number of millionaires moving to the emirate has been increasing over the past several months. According to research firm New World Wealth, which tracks the wealth and the movements of millionaires, multi-millionaires and billionaires globally, about 2,000 high-net-worth individuals relocated to Dubai in the first six months of 2021. As of June 2021, the number of high-net-worth individuals living in the emirate stands at 54,000, up by 3.8 percent from 52,000 last December.
Which areas the millionaires are buying properties in?
As of Q2 2021, with the huge demand prices per square foot in the ultra-luxury category have gone up by 17.68 percent.
Based on data from the Dubai Land Department, overall Dubai’s prime residential market had 4,827 apartments and 506 villas transacted in third quarter of this year.
These properties are located in popular areas like Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Business Bay, Emirates Living, Jumeirah, Jumeirah Beach Residence, Mohammed bin Rashid City, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lakes Towers and Palm Jumeirah.
The most desirable location for buyers so far is Palm Jumeirah, which had a total of USD 1.06 billion in sales for the third quarter, followed by Downtown Dubai (USD 623 million) and Business Bay (USD 563 million).
Demand for properties in Dubai increased during the COVID-19 lockdown last year, which has led to a rise in prices.