Dubai’s luxury real estate market is booming. Here’s why

Dubai’s luxury real estate market is booming. Here’s why

The terms ‘Dubai real estate’ and ‘luxury’ have become somewhat interchangeable this year – rarely do you hear this market mentioned without the context of ‘luxury’, and yet most market participants are left wondering whether this segment is threatened by – or immune to – global headwinds. We have examined the fundamentals leading to this rapid ascent into luxury, the factors driving it, and the response on the ground from developers and decision-makers. Dubai beat everyone to the punch as it opened its borders to tourists from around the globe while the rest of the world shut down and closed its borders. Many wealthy individuals discovered Dubai for the very first time, and in doing so, made it home for their families. The US Fed slashed interest rates in order to spur consumer demand and spending, leading to asset price inflation across nearly all asset classes globally, with luxury property claiming the top share. Steady increases in oil prices helped companies around the UAE thrive, spurring trickle-down effects into the broader UAE economy. These reforms helped ultra-high net-worth individuals migrate from Europe, the UK, and other countries to Dubai seeking to take advantage of the Emirates’ superior tax regime. Wealthy