Dubai is the perfect place for the growing trend of branded residences, where famous luxury brands collaborate with top developers on serviced apartments. This trend is booming, with new branded towers like Bugatti Residences, the car brand’s first residential project worldwide, attracting wealthy buyers.
Housing Market Overview In Business Bay, the prices for off-plan sales in a sleek new tower start at AED19 million ($5.2 million), with penthouses featuring car lifts to bring owners’ cars directly to their homes. These units have set a new high for Dubai, with prices reaching AED9,674 ($2,630) per square foot, more than three times the city’s average price.
Meanwhile, in Dubai Marina, the world’s tallest residential clock tower, branded by luxury watchmaker Franck Muller, has become a standout. Apartments in this unique building are priced at AED2.1 million ($572,000), which is just above the threshold to qualify for Dubai’s golden visa, allowing buyers to stay long-term.
Firas Al Msaddi
CEO of fam Properties
Dubai’s real estate market has flourished, with its reputation as a global safe haven attracting investors. In 2024, trends like sustainability are gaining momentum, with more green properties, affordable housing, smart homes, and wellness-focused communities emerging.
Dubai has seen many property booms before, including the dramatic crash in 2008, when Abu Dhabi had to help out with a $20 billion bailout. But this time, the market is performing better than ever, with new property launches up 90% in 2023. It was also the best year on record for residential sales, with a 29% increase from 2022. A record 431 properties worth over $10 million were sold last year, nearly double the previous year’s total. Buyers mostly came from the UK and India, but Dubai’s safe investment environment attracts wealthy individuals from around the world, including Egypt, Pakistan, and Turkey.
Average Listing Price in Prime Locations So, what’s different this time? This year, the forecast for prime property prices in Dubai is looking positive, with expected growth of 4-6%, while many global cities are seeing little change. So, it seems Dubai’s property market is not a bubble and is likely to continue growing.
The buyer profile is shifting, with investors still heavily involved in off-plan properties, particularly in areas like Dubai Hills and Emaar Beachfront, which is a new man-made island with 16 residential towers along a private beach. Many buyers are interested in these properties for the potential to sell them for a profit before completion in a couple of years.
Dubai’s real estate growth is shifting outward from the city center, with areas like Jumeirah Village Circle (JVC) and Sports City, which offer luxury apartments and easy access to top sports facilities. There is also growing interest in inland communities, as most of Dubai’s coastline is already built out. Locations like Al Barari, Al Ghaf, Jumeirah Islands, and Jumeirah Golf Estates are becoming prime areas for long-term living.
Prices in Popular Locations:
- Business Bay: $1,202,000
- Downtown Dubai: $1,282,000
- Dubai Canal: $1,241,000
- Emaar Beachfront: $1,291,000
- Jumeirah Golf Estates: $2,571,000
- Jumeirah Islands: $6,234,000
- Jumeirah Village Circle: $685,000
- The Palm Jumeirah: $3,898,000
Dubai: A Tax Haven Dubai’s low tax rates (no income or capital gains tax, and only a 5% VAT) and year-round sunshine continue to attract foreign buyers. There is also growing demand for holiday homes, with buyers looking for places to stay during the colder months in Northern Europe and the UK, when Dubai’s temperatures are perfect for a winter getaway.
After a period of stagnation, Dubai’s property market is bouncing back in a big way. We’ll see if the 2027 completion of the world’s tallest residential clock tower, along with many other new properties, will continue the market’s upward trend or mark the end of the current boom.
