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Arabian Business
24-04-2025
- Business
- Arabian Business
Dubai residential real estate sales up 30% in Q1; top-performing areas and premium transactions revealed
Dubai residential property sales increased by 22.4 per cent year-on-year, with a 29.6 per cent increase in the total value sold, in Q1 2025, according to an Engel & Völkers Middle East market report. The increases are driven by strong investor sentiment, rising population figures, and a steady flow of global capital into the emirate. At the same time commercial real estate sales increased by 18.2 per cent year-on-year, with a 29.5 per cent increase in the total value of transactions. Dubai real estate 2025 Despite the usual seasonal dip from Q4, Dubai's residential market delivered broad-based growth. Off-plan sales were up 23.9 per cent and secondary transactions rose 20.3 per cent, with continued demand across both ends of the price spectrum. Apartments remained the dominant property type, comprising 76 per cent of all residential transactions. Jumeirah Village Circle retained its lead in both off-plan and resale apartment sales, supported by attractive pricing, strong rental yields, and proximity to major road networks. Secondary market momentum was also evident in Business Bay, Dubai Marina, and Downtown Dubai — key areas sought by investors and end-users alike for their connectivity, proximity to amenities and enduring rental demand. The villa segment was a clear standout for growth, with transactions increasing by 80.6 per cent year-on-year. The surge was primarily led by off-plan activity in emerging, master-planned communities such as The Valley, Emaar South, and Damac Islands. The total transaction value for villas rose by 55.1 per cent, pointing to a growing preference for more affordable, family-oriented housing in newer developments on the fringes of Dubai. In the luxury and ultra-luxury segment, Dubai maintained its momentum. Sales above AED10m ($2.7m) grew by 29 per cent from Q1 2024, and are now up 185 per cent from Q1 2022. Palm Jumeirah and the rapidly emerging Palm Jebel Ali accounted for 31 per cent of sales over AED10m ($2.7m), supported by demand for ultra-luxury, waterfront villas. Noteworthy deals included the AED425m ($116m) sale of the Marble Palace in Emirates Hills and an AED115m ($31.3) villa in Palm Jumeirah's EOME community, brokered by Engel & Völkers Private Office Advisor Fadi Alsalem. Dubai continues to establish itself as the world's leading destination for high-net-worth individuals. According to Henley & Partners, the number of resident millionaires has grown by more than 100 per cent in the past decade, with the UAE attracting more HNWIs than any other country in 2023 and 2024. Today, Dubai is home to more than 81,000 millionaires, 237 centi-millionaires, and 20 billionaires – a figure that is set to rise as global wealth relocates toward stable, high-performing destinations. Dubai's rental market also reflected sustained demand, with more than 51,000 new residents added in the first quarter alone. While rent increases show signs of stabilising, luxury apartments in Bluewaters (+14.1 per cent) and villas and townhouses in Dubai Hills Estate (+33.8 per cent), and Arabian Ranches (+20.6 per cent) registered significant year-on-year growth. The commercial real estate continued its upward trajectory, with office, retail, and mixed-use segments all posting gains. Office sales transactions increased by 40 per cent, and the average price per sq ft rose 15 per cent to AED1,676 ($456). Business Bay and JLT remained leading hubs for Grade A office space, recording 315 and 217 sales respectively. Off-plan interest in Capital One helped position Motor City as a leading office investment destination in Q1. Retail sales, meanwhile, rose 6 per cent year-on-year, with concentration in thriving residential and mixed-use communities such as Business Bay, Arjan, and JVC. Leasing activity also accelerated, with a 17.6 per cent quarter-on-quarter increase across the commercial sector. Office rents grew by 23 per cent year-on-year to AED112 ($30.5) per sq ft, led by demand in core business districts such as Business Bay, JLT, and Dubai Investments Park. While retail rents remained steady at AED240 ($65) per sq ft, increasing appetite for Grade A space suggests upward pressure on pricing may emerge in the latter half of the year. Daniel Hadi, CEO of Engel & Völkers Middle East, said: 'In the face of global economic uncertainty, Dubai's real estate market continues to show excellent fundamentals, with cross-sector growth and compelling returns for investors. 'Demand is being fuelled not just by regional wealth and migration, but by strategic policy, infrastructure investment, and the city's global positioning as a future-forward hub for living and business.' Recent infrastructure announcements, including the acceleration of the Etihad Rail project, the rollout of the Dubai Loop system, and strategic road upgrades in central business zones, are expected to further reinforce the city's competitive edge. Major commercial projects announced in Q1 2025, such as the AED5bn ($1.3bn) redevelopment of Mall of the Emirates also signal strong confidence from Dubai's top developers in the long-term resilience of the city's retail and consumer sectors. As Dubai continues to attract global investors, business leaders, and new residents, Engel & Völkers remains optimistic about the outlook for the remainder of 2025.
Arabian Business
14-04-2025
- Business
- Arabian Business
Dubai and Abu Dhabi named world's best cities for HNWI relocations thanks to tax rules and quality of life
Dubai and Abu Dhabi are the best cities in the world for high-net-worth individuals to relocate to, according to Savills research. The trifecta of a fluid geopolitical and economic environment; changing government policies, taxes and incentives; and quality-of-life factors, is increasingly influencing where high net worth individuals (HNWIs) and footloose companies choose to locate, said Savills. The real estate consultancy launched the Savills Dynamic Wealth Indices to identify the cities that are performing well at attracting and developing wealth and investment from individuals and businesses. Dubai and Abu Dhabi attract HNWI and businesses Savills said that personal tax incentives, existing high concentrations of HNWIs, and a good quality of life put the cities of Dubai and Abu Dhabi of the UAE in the top two positions, followed by Singapore, Zurich and Auckland to make up the top five preferred locations for individuals looking to relocate. Meanwhile, Singapore, Seoul, New York, London and Abu Dhabi take the top five places for corporate relocations based on their corporate tax and business environments, volumes of foreign direct investment, and economies and knowledge bases. This means that Abu Dhabi has ranked in the top five for both, individuals and corporates looking to relocate, highlighting its range of benefits. Rachael Kennerley, Director of Research at Savills Middle East said: 'Abu Dhabi's sovereign wealth has notably attracted connected family offices and global corporates. In turn, this has stimulated office demand, with new businesses requiring space, and the luxury residential market. Arguably, the push of fiscal policies of other countries has heightened the UAE's pull.' The UAE is a particularly attractive option for HNWIs who bring their companies with them. It has a dynamic economy that is diversifying away from oil and attracting growing sums of corporate and sovereign wealth investment. This has in turn boosted real estate transaction volumes and values. Prime residential capital values in Dubai rose by 6.8 per cent in 2024, with prime office values growing by 7 per cent in Q4 alone. In 2024, the residential sector recorded unprecedented transaction volumes, with a 47 per cent year on-year increase. Of this, over 4,600 units priced above AED10m ($2.72m) were transacted during the year, marking a 23 per cent year on-year increase. Paul Tostevin, Director of Savills World Research, said: 'Against an increasingly changeable geopolitical and economic backdrop, global wealth flows are evolving, as HNWIs and businesses adapt their decisions on where to locate. 'Traditional predictors of global wealth flows, such as government policies, taxes and incentives, and the presence of either innovative talent pools or existing communities of similar individuals, have always been key drivers of dynamic footloose companies and individuals, and will continue to play a major role, but a sense of place, and a high quality of living, are progressively the deciding factor when making location decisions.' Savills says that six of the top 12 locations feature in both the corporate and individual Dynamic Wealth Indices – highlighting how business and personal priorities can often overlap as businesses want to locate in destinations that can provide the necessary talent to sustain them, following skilled workers who tend to prioritise a better quality of life. While lifestyle factors appeal chiefly to the individual, the knock-on effects of creating talent clusters, or HNWIs bringing their businesses with them when they relocate, make them a magnet for corporate wealth, too.
