Demand for luxury properties in Dubai hits all-time high as pandemic subsides

Demand for luxury properties in Dubai hits all-time high as pandemic subsides

At the height of the pandemic and for the longest time, every luxury residential unit worth more than a million US dollars was a burden on the real estate market in Dubai. Premium properties were barely selling as Dubai turned into a predominately buyer’s market in the wake of COVID-19.

Most investors adopted a buy-to-let model, purchasing small-scale, low-ticket units in bulk to achieve a higher return on investment. Tourism was primarily driven by low-income people who were more likely to opt for smaller, affordable units.

With the pandemic coming to an end, all that is changing. More and more people, especially millionaires, are moving to Dubai with their families and investing in holiday homes and permanent residences. According to New World Wealth, Dubai’s population of high-net-worth individuals (HNWIs) soared to 54,000 HNWIs in June 2021 from 52,000 in December 2020, achieving a growth of 3.8%.

Gaurav Aidasani, Founder & Managing Director, Union Square House, said: “The influx of millionaires that Dubai is witnessing has been boosting the luxury property market. Investors today still seek high returns on their investments. However, the main reason behind their investments now is to own a super-prime home in Dubai. This has created a market shift in