Rents have reached record highs due to unprecedented demand for uber-luxury properties in Dubai, with 270 rental transactions signed in the first five months of 2024 with annual rents of Dh1 million or more.
This shows that the UAE continued to attract high net-worth individuals, or millionaires, from across the globe who are making the emirate their home.
According to a study by property brokerage firm Betterhomes, the prime locations dominating the high-end market were Palm Jumeirah, Mohammad bin Rashid City, and Dubai Hills Estate as they are renowned for their upscale amenities and prime real estate offering.
Among these luxury rentals, 61 per cent of villas and townhouses, reflecting the preference for spacious and private living environments in the emirate’s luxury segment. The remaining 39 per cent were apartments, which were chosen for their prime locations and high-rise views. The average size for luxury apartments was around 4,000 sqft while villas and townhouses average around 6,300 sqft.
As reported by Khaleej Times earlier, the UAE will see over 6,700 millionaires more this year, the highest for the third consecutive year, according to The Henley Private Wealth Migration Report 2024 released by Henley and Partners. The UAE is home to 116,500 millionaires with a liquid investable wealth of $1 million plus, 308 centi-millionaires with assets of $100 million plus and 20 billionaires.
Most of these millionaires relocating to Dubai will look to either buy or rent a property in Dubai due to the safety and security, world-class lifestyle, and easy connectivity with different cities around the world.
According to the latest Destination Dubai report released by Knight Frank, Dubai took pole position at 67 per cent in 2023 for the most preferred UAE emirate for real estate investments amongst global HNWI. This figure jumped to 73 per cent this year, highlighting the city-state’s enduring and growing appeal amongst the world’s wealthy.
Betterhomes data showed that leasing luxury properties are much cheaper than in London, New York, Hong Kong and Singapore but the average size of the units is much bigger than in the four cities. In fact, rents of uber-luxury properties in Dubai cost nearly half of what is charged in Hong Kong and Singapore while per square foot space is almost double that is offered in the two cities.
For instance, the minimum annual rent for the luxury market is around Dh500,000 in Dubai but it costs nearly Dh700,000 in London and New York, Dh1.17 million in Hong Kong and Dh955,000 in Singapore.