DATE: 23 Feb, 2023
From its beautiful sandy beaches and majestic skyline to its buzzing modern atmosphere and luxurious lifestyle, the city of Dubai has always been a destination for travellers and residents alike. But what is driving demand for luxury apartments in Dubai?
Let’s explore the factors driving the demand for luxury apartments in Dubai and how you can make sure you’re making an informed decision when shopping around for one.
Attractive tax policies
In recent years, the Dubai government has been proactive in introducing several tax incentives and reforms to make the city more attractive to high-net-worth individuals and businesses. These include no personal income taxes, exempting foreign investors from capital gains taxes, and introducing a value-added tax (VAT) regime where some goods and services are subject to a 0% rate or an exemption from VAT. As a result of these measures, Dubai has become one of the most attractive jurisdictions for luxury real estate investment.
According to Knight Frank’s 2018 Wealth Report, Dubai is now the third most popular destination for ultra-high-net-worth individuals (UHNWIs), with a population of over 20,000 UHNWIs. This is significant growth from sixth place in 2015. The city is also ranked as the fifth-best city in the world by the World Cities report 2023.
These rankings are driven by several factors, including the city’s stability, favourable tax regime, and status as a gateway to the Middle East. This makes Dubai even more appealing as a destination for investment.
In addition to its global financial hub and tax-free status, Dubai’s world-class infrastructure is another critical driver of demand for luxury apartments. The city has an excellent transport network, with the Metro service complemented by an extensive bus network and taxis. There are also plans to develop a driverless, fully automated metro system.
The city’s roads are well-maintained, and there is no shortage of parking spaces. Furthermore, there are a whole host world’s best architectural marvels, be it the world’s tallest building, i.e., Burj Khalifa, the world’s first seven-star hotel, i.e., Burj Al-Arab, one of the biggest malls, i.e., Dubai Mall, or the tallest residential building, i.e., Burj-Bhingari with apartments facing Burj Khalifa.
As the economy in Dubai continues to grow, there is an increasing demand for luxury apartments. This is due to the city’s growing population and the influx of tourists and businesses. The city’s real estate market is booming, and luxury 2-bedroom, 3-bedroom, and 4-bedroom apartments in Dubai are in high demand.
The growing demand for luxury apartments in Dubai is a positive trend benefiting the city’s economy. This growth attracts more businesses and investors to the city, thus creating jobs and boosting economic activity. Additionally, the increase in tourism contributes to the Emirates’ economy by generating revenue from hotel stays and other tourist-related expenditures.
A safe and secure environment
In Dubai, luxury apartments are in high demand due to the city’s reputation for being a safe and secure environment. This is especially important for those looking to invest in property in the emirate.
Investors feel confident that their investments are well-protected when they purchase property in Dubai. This confidence is bolstered by the fact that Dubai has consistently been ranked as one of the safest cities in the world. In addition to its strong security measures, Dubai also offers a number of other amenities and benefits that make it an attractive destination for those looking to purchase luxury apartments.
A central hub for tourism
As one of the most popular tourist destinations in the world, Dubai is a central hub for tourism. This drives demand for luxury apartments in Dubai, as visitors want to experience the city’s best. Luxury apartments in Dubai, like our Imperial Avenue Downtown Dubai, offer lavish amenities and stunning views of the cityscape, making them a desirable option for tourists. With so much to see and do in Dubai, it’s no wonder that luxury apartments are in high demand.
Dubai has become a hotspot for luxury living with no signs of slowing down. Its attractive location, diverse economy, and commitment to delivering world-class services and facilities have allured people from all walks of life looking to make their homes in this thriving hub. Residents enjoy access to top-quality amenities, fine dining experiences, and beautiful views – making it easy to understand why many choose luxurious accommodations when considering their move to Dubai.
1. What is the future of Dubai real estate?
According to a report published by Knight Frank’s global research network, amongst the 25 cities that they tracked, Dubai leads the list with the prime price forecast for 2023 with 13.5% annual growth.
2. Is real estate a good investment in 2023?
Real estate in 2023 is anticipated to undergo a period of robust growth. So investing early can let you benefit from the short term rental yield and long term capital appreciation.
3. Will Dubai real estate prime residential market to see strongest growth in 2023?
Dubai’s mainstream residential real estate market is expected to undergo a price increase of 5-7% by the end of 2023. For prime Dubai, prices will likely end the year around 50% higher than in 2021.