Dubai's Real Estate Shows No Signs of Slowing Down

Dubai’s real estate shows no signs of slowing down as the high-net-worth individuals (HNWIs), ultra-high-net-worth individuals (UHNWIs) and investors are keen to invest in one of the fastest growing property market in the world due to its promising outlook in coming years, experts say.

Industry leaders and property executives are of the opinion that the emirate’s property market is seeing an unprecedented growth following golden visa initiative introduced by the government to attract HNWIs and UHNWIs who channelled $146 billion into Dubai's real estate sector so far, making it the largest offshore investment market globally.

In addition, safety and security, ease of doing business initiatives, excellent infrastructure, low taxes and consistency of policies, among others, also attracted global investors and end-users to make Dubai their second home. Today, the emirate is number one destination for millionaire migration who are expected to invest up to $5 billion in the real estate sector this year.

Bas Kooijman, CEO of DHF Capital S.A., Asset Manager, said Dubai’s real estate sector shows no signs of slowing down. The ongoing expansion of infrastructure, such as new luxury developments and large-scale projects, continues to enhance the city’s appeal. Additionally, the UAE government’s proactive approach to residency and investment programmes, including potential future enhancements to the golden visa, will likely attract even more global investors.

“As Dubai continues to solidify its position as a global hub, I expect that the real estate market will remain a key area for both local and international investment. The city’s ability to balance rapid growth with a strong regulatory framework makes it an ideal destination for investors looking for long-term value.”

Golden visa — a growth driver

Farooq Syed, CEO of Springfield Properties, said the golden visa programme has proven to be an essential component of Dubai’s ability to attract HNWIs and UHNWIs from across the globe. The remarkable initiative grants long-term residency, fostering a sense of stability and security for those looking to invest in the emirate’s thriving property market.

“Given the emirate's status as a global wealth magnet, with demand for luxury homes remaining robust, this programme will likely continue to be a cornerstone of Dubai's real estate strategy,” Syed told BTR.

He said the fact that 158,000 golden visas were issued in 2023 underscores the programme’s appeal and effectiveness in attracting foreign capital.

“As Dubai continues to develop its infrastructure and lifestyle offerings, the golden visa will remain a powerful driver in bringing international investors to the city,” he said.

Investment range

Syed said the majority of golden visa holders are investing in properties around the Dh2 million mark and this price point aligns with the visa’s requirements and offers broader accessibility, making it a dominant choice for investors.

“The substantial availability of properties in this segment drives this trend, reflecting the growing demand for mid-range real estate, which provides strong potential for capital appreciation.”

At the higher end of the market, he said ultra-luxury properties continue to attract HNWIs seeking prime investments. However, it’s the Dh2 million range that accounts for the bulk of golden visa holders, driven by both affordability and the volume of properties available in this category.

Investment in second home

Referring to the company’s analysis, Syed indicates that most golden visa holders view their property purchases as long-term investments. Most investors prioritise capital growth and rental income, focusing on high-demand areas such as Dubai Hills, Creek Harbour, Downtown, Palm Jumeirah and most villa & townhouse communities. These locations offer excellent opportunities for rental yields and asset appreciation due to their prime positioning.

“At the same time, there is a growing trend of UHNWIs purchasing ultra-luxury properties as second homes or holiday residences. This is particularly evident in exclusive neighbourhoods such as Palm Jumeirah and Jumeirah Bay Island, where buyers from Europe, CIS, and Southeast Asia are investing in properties as part of their wealth diversification strategies,” according to Syed.

He said Springfield Properties offers a comprehensive range of services to ensure that golden visa holders can seamlessly navigate the Dubai real estate market. These include:

Exclusive Property Access: We provide access to a curated selection of prime and ultra-prime properties in some of Dubai’s most sought-after locations. Our portfolio includes prestigious branded residences and high-end developments that appeal to HNWIs looking for unique investment opportunities.

Tailoured Investment Strategies: Each client’s investment goals are unique, which is why we work closely with Golden Visa holders to develop customised strategies. Whether it’s long-term capital appreciation, generating rental yields, or securing a second home, we guide clients in making well-informed decisions.

Valuation and Legal Support: For clients who initially purchased properties below Dh2 million, but whose property values have appreciated due to market growth, we assist in obtaining updated property valuations through accredited valuers. This ensures that their properties now meet the Dh2 million threshold required for golden visa eligibility. Additionally, we handle all necessary legal documentation for property transfers and golden visa applications, providing a seamless process from start to finish.

Dubai — Millionaires home

Kooijman said the golden visa programme has been instrumental in driving Dubai’s real estate boom, especially among HNWIs and global investors.

In 2022 alone, the UAE has attracted approximately 4,000 millionaires, marking one of the largest inflows on record, with growth projections showing that the number of UHNWIs is expected to increase from 580 to 750 over the next five years and this trend is expected to continue due to several factors.

“Dubai’s attractive tax environment — where there is no income tax on salaries and the recent introduction of profit tax only affects companies with active revenue — makes it an appealing destination for wealth preservation and business setup. For investors, this provides a secure, long-term residency option in a rapidly growing city with favourable financial conditions,” he said.

Moreover, Dubai’s central location, bridging Europe, Asia, and Africa, makes it a strategic gateway for international business and travel. This further enhances its global appeal as both a business hub and a lifestyle destination.

“The golden visa programme, combined with Dubai’s modern infrastructure and world-class amenities, is likely to remain a dominant factor in attracting global investors looking for stability and growth,” he said.

Attracting foreign investment

Kooijman said the golden visa programme has attracted substantial investment into Dubai’s real estate sector, estimated to be in the tens of billions of dollars; in 2023 alone, we have Dh242 billion in foreign investment, with a significant portion attributed to the golden visa programme. This influx is driven by both individual investors and larger investment groups seeking to capitalise on the city’s booming property market.

“A significant portion of this investment has flowed into luxury residential developments and high-end commercial properties, with many golden visa holders looking for secure, high-return assets in a stable market. As the programme continues to grow, we expect the cumulative investment to rise, further fuelling Dubai’s position as a premier destination for global real estate investors with a projection that it is expected to exceed Dh300 billion by 2028,” he said.

Kooijman said golden visa holders span a wide range of investment levels. While many choose properties around the Dh2 million mark to meet the visa’s minimum requirements, about 30 per cent or more of investors opt for high-end properties that go well beyond the threshold. These include luxury villas, penthouses, and prime residential units in some of Dubai’s most sought-after neighbourhoods, such as Downtown Dubai, Palm Jumeirah, and Dubai Marina.

Luxury real estate, with its strong potential for capital appreciation, remains highly appealing for golden visa holders who are seeking both investment returns and lifestyle benefits. This segment continues to see robust growth, driven by the city’s rapid development and high demand for premium properties.

Additional benefits

Kooijman said DHF Capital offers comprehensive financial solutions tailored to the needs of high-net-worth individuals, including golden visa holders.

“We do not specialise in real estate transactions, as our primary focus is helping clients navigate Dubai’s favourable financial environment, particularly when it comes to wealth management, estate planning, and tax strategies.

“We work closely with real estate investors and guide them on how property investments can also complement their broader financial goals, such as building multi-generational wealth or optimising tax benefits. By helping clients structure their assets effectively, DHF Capital ensures that they not only benefit from Dubai’s real estate opportunities but also have a solid financial foundation to support long-term growth. These services extend beyond just golden visa holders to a broader international client base.

— muzaffarrizvi@khaleejtimes.com