UAE Luxury Residential Real Estate Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 8.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAE Luxury Residential Real Estate Market Analysis
The size of the united arab emirates luxury residential real estate market is USD 13.7 billion current year. It is anticipated to register a CAGR of over 8% during the forecast period.
- The luxury residential real estate market stopped due to Covid-19, as the government implemented lockdowns and citizens was forced to stay home. Nonetheless, UAE residential property prices were set to continue rising in 2022, driven by supportive economic reforms and an accelerated vaccination program. According to experts, the program helped to hasten a rebound from last year's coronavirus-induced slowdown.
- The year 2021 saw increased activity in the luxury housing sector as it recorded a 40% price surge compared to the preceding year despite the pandemic challenges. The luxury home market started on a high note with a significant jump in transactions of 30% on a year-on-year basis, as it recorded 4,083 deals in January 2022. The average property prices (per sq ft) also increased by 35.1% during the month.
- Dubai's luxury residential real estate market is poised to thrive and continue the high momentum in 2022, supported by rising demand and interest from the international elite. Post Expo landscape looks bright for the emirate's luxury home market as it is brimming with new opportunities for buyers and investors.
UAE Luxury Residential Real Estate Market Trends
Post-Expo landscape looks bright for Dubai luxury home market
Dubai's luxury home market is poised to thrive and continue the high momentum in 2022, supported by rising demand and interest from the international elite. The year 2021 saw increased activity in the luxury housing sector as it recorded a 40% price surge compared to the preceding year despite the pandemic challenges.
Luxury property owners in Dubai are delaying selling homes as a 10 to 15% jump in annual price gains is expected in prime areas. It is because the emirate recorded a 30% jump in transactions of luxury homes in January 2022, with 4,083 deals. The luxury property market recorded a substantial price increase of 35.1% per sq ft, especially in prime areas, including The Palm Jumeirah, Jumeirah Bay, District 1, and Dubai Hills.
Maintaining its reputation for selling ultra-exclusive and luxury villas, The Palm Jumeirah sold the most expensive villa worth AED 87 million (USD 23.68 million) during Q1, 2022. Another villa valuing AED 30 million (USD 8.17 million) was sold on Island 2. It was followed by luxury villas in Dubai Hills Estate, Nad Al Sheba Third, and Al Hebiah Fourth, sold for AED 29 million (USD 7.89 million), AED 22 million (USD 5.99 million), and AED 10 million (USD 2.72 million), respectively.
The luxury property market was supposed to retain its upward trajectory in 2022, with more upscale buildings and projects rising. Consequently, wealthy foreign investors will show more interest in the sector. The market, on the whole, will benefit from an influx of overseas investors as there's an increase in demand from Ukrainian and Russian buyers.
Rise in Luxury Concierge Real Estate Driving the Market
The year 2021 was a landmark one for Dubai real estate market. Not only did it rebound, but it also posted record-breaking figures thanks to overseas investors, low-interest rates, and strong demand. The Dubai Land Department registered an astounding 71% growth in the value of total transactions in 2021 compared to 2020, shattering a 12-year record. Luxury Concierge Real Estate (LCRE) contributed to this performance, which is a channel partner with leading property developers in Dubai.
In 2021, LCRE clocked sales worth AED 1.3 billion (USD 353.8 million) at the Dubai Land Department. Sales with Emaar Properties alone stood at approximately AED 383 million (USD 104.25 million), followed by Damac, which was about AED 203 million (USD 55.2 million).
Damac selected ten companies to join the elite round table group. It was based on the long-term association with the reputed brand and 2021 sales. This group gets access to Damac's many exclusive privileges, such as up-front product launch information, exclusive inventory in landmark projects, and a private office in Damac Sales Centre. This connection and access to big-name developers are advantages prospective buyers get when choosing LCRE.
With the UAE managing the Covid-19 pandemic exceptionally well, Dubai's attraction as a real estate investment destination grew. LCRE could finally capitalize on all its hard work and contacts established over the years. The company now includes a high-net-worth client base from across the globe.
UAE Luxury Residential Real Estate Industry Overview
The United Arab Emirates luxury residential real estate sector is fragmented and increasingly competitive. Some of the major players are Emaar Properties, Dubai Holding, Meraas, Nakheel Properties, etc. Increased spending on infrastructure, relaxed laws for foreign investors, new government initiatives to drive investments, and new project announcements are expected to bring an overall development in the real estate sector, further enhancing the interest of more investors.
UAE Luxury Residential Real Estate Market Leaders
-
Emaar Properties
-
Dubai Holding
-
Meraas
-
Nakheel Properties
-
Vincitore Realty
*Disclaimer: Major Players sorted in no particular order
UAE Luxury Residential Real Estate Market News
- March 2023: Emaar The Economic City (Emaar EC) agreed to sell a prime beachfront land plot in Murooj Golf Community District, King Abdullah Economic City (KAEC), as an in-kind contribution to Al Bilad Tourism Fund. It is a Capital Market Authority (CMA)-regulated Shariah-compliant closed-end private real estate investment fund. In return for the land sale, Emaar EC will acquire units in the fund worth SAR 269.2 million (USD 717 million), representing 41.15% of the fund's equity. The fund strategy is to develop and operate the resort under the Rixos Premium brand (an all-inclusive luxury resort and waterpark comprising around 550 properties with lifestyle, retail, and food and beverage offerings). This is to create value and exit at the planned maturity of 12 years, said the company.
- February 2023: Dubai Holding, a diversified global investment company with operations in 13 countries, announced that it had acquired full ownership of the iconic The Westin Paris - Vendome after acquiring Henderson Park's stake in the property. The acquisition of this prime asset further strengthens Dubai Holding's extensive portfolio of world-class assets in key gateway locations. In addition, it supports the Group's long-term strategy of global expansion that is focused on boosting its presence in strategic destinations worldwide, including North America, the Middle East, Europe, and Asia.
UAE Luxury Residential Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Value Chain/Supply Chain Analysis
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Current Economic Scenario and Consumer Sentiment
4.6 Luxury Residential Real Estate Buying Trends - Socioeconomic and Demogpaphic Insights
4.7 Government Initatives, Regulatory Aspects for Residential Real Estate Sector
4.8 Insights on Size of Real Estate Lending and Loan to Value Trends
4.9 Insights on Interest Rate Regime for General Economy, and Real Estate Lending
4.10 Insights on Captial Market Penetration and REIT
4.11 Impact of COVID - 19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Apartments and Condominiums
5.1.2 Villas and Landed Houses
5.2 By Cities
5.2.1 Dubai
5.2.2 Abu Dhabi
5.2.3 Sharjah
5.2.4 Al Ain
5.2.5 Other Cities
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Company Profiles
6.2.1 Emaar Properties
6.2.2 Dubai Holding
6.2.3 Meraas
6.2.4 Nakheel Properties
6.2.5 Vincitore Realty
6.2.6 Sobha Realty
6.2.7 Aldar Properties
6.2.8 Azizi Developments
6.2.9 Meydan
6.2.10 DAMAC Properties*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
UAE Luxury Residential Real Estate Industry Segmentation
Luxury residences aim to gives charming and pleasant lifestyle. As a result, many luxury flats provide luxurious facilities. Modern-day luxury homes feature the most beautiful facilities that set them apart from standard or mid-segment residences, such as gorgeous clubhouses, in-house badminton and racquet courts, mini-theatres, arcade rooms, branded gyms, and jacuzzi pools.
The report includes a comprehensive background analysis of the power tools market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the industry's competitive landscape. The impact of COVID-19 is also incorporated and considered during the study.
The UAE luxury residential real estate market is segmented by type (apartments, condominiums, villas, and landed houses) and city (Dubai, Abu Dhabi, Sharjah, Al Ain, and other cities). The report offers market size and forecasts for the United Arab Emirates Luxury Residential Real Estate Market in value (USD) for all the above segments.
| By Type | |
| Apartments and Condominiums | |
| Villas and Landed Houses |
| By Cities | |
| Dubai | |
| Abu Dhabi | |
| Sharjah | |
| Al Ain | |
| Other Cities |
UAE Luxury Residential Real Estate Market Research FAQs
What is the current UAE Luxury Residential Real Estate Market size?
The UAE Luxury Residential Real Estate Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)
Who are the key players in UAE Luxury Residential Real Estate Market?
Emaar Properties, Dubai Holding, Meraas, Nakheel Properties and Vincitore Realty are the major companies operating in the UAE Luxury Residential Real Estate Market.
What years does this UAE Luxury Residential Real Estate Market cover?
The report covers the UAE Luxury Residential Real Estate Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UAE Luxury Residential Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAE Luxury Residential Real Estate Industry Report
Statistics for the 2024 UAE Luxury Residential Real Estate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Luxury Residential Real Estate analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
