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Khaleej Times
23-04-2025
- Business
- Khaleej Times
Super rich drive Middle East luxury real estate boom
The Middle East is experiencing an unprecedented surge in high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs), with the UAE emerging as a global magnet for wealthy investors. According to the latest Private Capital Report by Knight Frank, a leading global property consultancy, the number of dollar millionaires in the UAE has surged by nearly 98 per cent over the last decade, fuelling a dramatic increase in high-value property transactions and transforming Dubai into a global luxury real estate hub. The report highlights that as of December 2024, the UAE hosts approximately 130,500 dollar millionaires, making it the 14th-largest wealth market worldwide. This rapid growth is underpinned by strategic economic reforms, ambitious national visions, and a stable political environment that continue to attract international investors. In particular, the influx of millionaires has been significant over the past few years, with 7,200 new dollar millionaires arriving in 2024 alone — a jump from 4,700 in 2023 and 5,200 in 2022. Data from Henley & Partners indicates that these new arrivals are drawn by the country's attractive fiscal policies, luxurious lifestyle, and visionary governance. The majority of inbound millionaires originate from India (31 per cent), followed by the Middle East (20 per cent), Russia & the Commonwealth of Independent States (CIS) (14 per cent), and the UK & Europe (12 per cent). Such diverse origins underscore the UAE's position as a global nexus for wealth migration, especially at a time when political and economic uncertainties are prompting high-net-worth individuals to seek safer, more stable environments for their assets. The thriving influx of wealth is reflected vividly in Dubai's residential real estate market. The city has surpassed traditional luxury markets like London and New York in the ultra-luxury segment, particularly in sales of homes valued at $10 million or more. Last year, Dubai recorded 435 such transactions — just edging out the 434 transactions of 2023 — with the fourth quarter of 2024 alone witnessing 153 sales, setting a new record for quarterly high-value deals. In the first quarter of 2025, the market continued its upward trajectory with 111 homes sold for over $ 10 million, marking the highest Q1 on record. This is a 5.7 per cent increase compared to the same period last year, indicating that Dubai's luxury property sector is on track for yet another record-breaking year. Faisal Durrani, partner and head of Research for Mena at Knight Frank, explained, 'Dubai's luxury residential market continues to defy gravity. International demand remains exceptionally strong, with the city establishing itself as the world's premier destination for ultra-luxury real estate.' The Palm Jumeirah remains Dubai's most coveted ultra-prime address, accounting for 34 transactions worth a combined $562.8 million during Q1 2025. Emirates Hills follows with 15 sales totalling $356.7 million. The community also saw the most expensive deal of the quarter—a six-bedroom villa sold for $106.3 million in January, which was initially purchased for just $6.6 million in 2015. This represents an extraordinary appreciation of 1,635 per cent, averaging nearly 34.6 per cent annual growth. The top end of Dubai's luxury market continues to attract global UHNWIs. In Q1 2025, twelve transactions exceeded $25 million, only slightly below the 15 deals in the previous quarter. Such figures underscore an ongoing appetite for one-of-a-kind trophy homes, which is keeping demand high despite limited supply. Demand outstrips supply, especially in the ultra-luxury segment. The number of new villas delivered at the highest price levels has shrunk considerably. In 2023, virtually no new villas were introduced in the Dh5,000-plus psf category, and in 2024, only 16 villas entered the market at this level. Meanwhile, supply in the Dh2,000-3,000 psf range — covering many prime properties — declined by 57 per cent year-on-year, with the Dh3,000-5,000 psf segment decreasing by 39 per cent. Nicholas Spencer, partner at Knight Frank, noted, 'Dubai has cemented its position as a top destination for HNWIs seeking both personal residences and investment opportunities. Our research indicates that global HNWIs have earmarked approximately $4.4 billion for investment in Dubai's residential market, reflecting a 76 per cent increase from 2023.' The overall residential market in Dubai remains robust, with transaction volumes reaching nearly 170,000 deals in 2024, valued at around $115 billion. Notably, homes priced at US$ 10 million or more accounted for roughly 6 per cent of total sales value, emphasising the high-end segment's significance. Wealth levels strongly influence buying patterns. For instance, 78 per cent of those with personal wealth exceeding $15 million are interested in Dubai properties, with the average purchase budget among GCC-based HNWIs at $3.1 million. Among ultra-rich investors, 25 per cent are willing to spend between $60 million and $80 million on a Dubai residence, while 16 per cent are contemplating purchases exceeding $80 million. In addition to market dynamics, Knight Frank highlights the rising importance of family offices in the region. These entities, which manage wealth across generations, are increasingly attracted to Dubai and Abu Dhabi due to advanced legal frameworks and favourable regulations. Buthainah Albaity, Partner and Head of Private Capital and Family Enterprises for Mena, explained that competition among regional countries to attract these offices is fierce, recognizing their potential to drive long-term investment, innovation, and economic stability. With estimates suggesting that around $84 trillion will be transferred between generations globally over the next two decades, the Middle East is already witnessing a significant wealth transfer. In Saudi Arabia, many family businesses are transitioning from second to third-generation leadership, with Dubai and Abu Dhabi emerging as preferred locations for establishing trusts and managing cross-border assets. Beyond the UAE, other Middle Eastern markets are showing signs of growth. In Saudi Arabia, interest in residential property remains high, especially in the Holy Cities of Makkah and Madinah. Knight Frank's research indicates that approximately US$ 2 billion of potential investment is being considered by HNWIs from nine Muslim-majority nations, primarily for use as primary residences in these sacred cities. Qatar's real estate market is also gaining attention, with $537.5 million of private capital actively seeking residential opportunities, out of an estimated $3.2 billion worth of sales in 2024. Meanwhile, Egypt's real estate sector remains highly attractive to GCC investors, with a preference for residential properties, branded residences, and retail sectors.
Arabian Business
23-04-2025
- Business
- Arabian Business
UAE wealth growth drives record real estate transactions, says Knight Frank report
The UAE has experienced a 98 per cent increase in dollar millionaires over the past decade, establishing itself as the world's second-fastest growing wealth market and spurring unprecedented demand for high-value properties, a new report finds. The UAE attracted 7,200 millionaires in 2024 alone, building on previous influxes of 4,700 in 2023 and 5,200 in 2022, data from Henley & Partners shows. This strategic positioning has transformed the UAE from a regional financial centre into a global wealth hub, according to Knight Frank's Private Capital Report. UAE millionaire population doubles in decade, fuelling luxury property boom Faisal Durrani, Partner – Head of Research, MENA, said: 'In the Middle East, we are witnessing a defining era of wealth creation and real estate investment. The region's sustained economic growth, underpinned by ambitious national visions and strategic policy reforms, has reinforced its position as a global investment hub. 'Real estate remains at the heart of wealth strategies for UHNWIs, both as a store of value and as a means of wealth preservation. Across the MENA region, demand for prime and super-prime homes has reached unprecedented levels, fuelled by both local and international buyers seeking security, stability and long-term growth.' As of December 2024, the UAE hosted 130,500 dollar millionaires, ranking as the 14 th largest wealth market globally. The country is also home to 325 centi-millionaires (individuals with over $100 million in liquid investable wealth) and 28 billionaires – figures that have increased by 110 per cent over the decade. The largest proportion of incoming millionaires originated from India (31 per cent), followed by the Middle East (20 per cent), Russia & CIS (14 per cent), and the UK and Europe (12 per cent). Dominic Volek, Group Head of Private Clients at Henley & Partners, added: 'With a record-breaking 142,000 millionaires forecast to change their domicile globally in 2025, the UAE stands poised to capture a significant share of this wealth migration wave, strengthening its status as a wealth hub that has successfully transitioned from regional player to global force.' Dubai outpaces London, New York in ultra-prime home sales for second year This wealth migration has delivered substantial economic benefits. Dubai has led global markets for $10 million-plus home sales for two consecutive years, surpassing both London and New York with 435 such transactions in 2024, slightly above the 434 recorded in 2023. The fourth quarter alone saw 153 residential sales exceeding $10 million – an all-time record. The momentum continued into 2025, with 111 $10 million-plus sales in the first quarter, marking the highest Q1 result on record and a 5.7 per cent year-on-year increase from Q1 2024. ' Dubai's luxury residential market continues to defy gravity. Demand, particularly from international buyers, remains unrivalled on the global stage. In 2024 alone, Dubai not only led the world in the number of $10 million-plus home sales, but also topped total transaction value, with 435 deals worth $7.1 billion. It has firmly established itself as the global epicentre for ultra-luxury real estate – surpassing legacy markets like New York, London and Hong Kong. It's a staggering achievement for a market that, until recently, was considered relatively young,' Durrani explained. The Palm Jumeirah remains Dubai's premier ultra-prime location, recording 34 $10 million-plus transactions in Q1 2025 valued at $562.8 million. Emirates Hills followed with 15 sales totalling $356.7 million, including the quarter's most expensive deal: a six-bedroom villa sold for $106.3 million in January – representing a 1,635 per cent increase from its 2015 purchase price of $6.6 million. At the very top end, demand remains robust with 12 transactions over $25 million in Q1 2025, only slightly below the 15 deals in Q4 2024. This demand is creating supply pressures across price segments. In the AED2,000-3,000 psf range, new home delivery fell by 57 per cent year-on-year, while the AED3,000-5,000 psf segment saw a 39 per cent decline. The ultra-luxury sector faces the most severe shortfall, with just 16 villas delivered in the AED 5,000-plus psf category in 2024, following virtually no new villa deliveries in this segment in 2023. Nicholas Spencer, Partner – Private Capital and Family Enterprises, MENA, said: 'Dubai has cemented its position as a premier destination for HNWIs seeking real estate for personal use or for investment purposes, with a distinct focus by the global elite on making the city a permanent base or a second home. Our research revealed an astounding $4.4 billion earmarked for investment in Dubai's residential market by global HNWIs, a rise of 76 per cent on 2023, highlighting the seemingly limitless international demand from the super-rich for a home in the city.' HNWIs driving the market Last year, total residential transactions approached 170,000 deals worth approximately $115 billion, with $10 million-plus home sales accounting for about 6 per cent of this figure by total value. The appetite for Dubai real estate increases with wealth levels, rising from 28 per cent among those worth $2-5 million to 78 per cent for individuals with personal wealth exceeding $15 million. GCC-based HNWIs budget an average of $3.1 million for home purchases, while global HNWIs plan to spend an average of $36.5 million. Among ultra-high-net-worth individuals considering Dubai property, 25 per cent are prepared to spend $60-80 million, while 16 per cent would spend over $80 million. Family office growth accelerates wealth transfer across Middle East Knight Frank also noted increasing growth in family offices across the region. These wealth management vehicles have become critical to the financial landscape. Buthainah Albaity, Partner – Head of Private Capital and Family Enterprises, MENA, added: 'Countries across the region are in fierce competition to attract these offices, recognising their potential to drive investment, innovation and long-term economic sustainability.' UBS estimates $84 trillion will transfer between generations through these structures over the next two decades. In Saudi Arabia, many family businesses are transitioning from second to third-generation leadership, though numerous businesses have yet to experience a single succession. Dubai and Abu Dhabi have established the most advanced family office regulations in the region, attracting families both regionally and internationally. Their trust structures enable smooth wealth transfer, confidentiality and efficient cross-border asset management. India leads source countries for UAE's millionaire migration wave Knight Frank surveyed 506 HNWIs from nine Muslim-majority nations who collectively expressed willingness to commit $2 billion towards residential property purchases in Makkah and Madinah. The research found 84 per cent of global HNWIs interested in purchasing in Saudi Arabia, preferably in one of the Holy Cities, with 48 per cent looking to buy property in Makkah as a main residence. Qatar's residential market has also begun attracting attention from GCC nationals and expats. Knight Frank identified $537.5 million of private capital actively seeking residential real estate in Qatar, compared to total residential sales of $3.2 billion in Qatar during 2024. Egypt's real estate market remains highly sought after by GCC investors due to deep historic and cultural connections. The residential sector dominates preferences at 68 per cent, followed by branded residences (30 per cent) and retail (29 per cent), with 72 per cent citing purchase of a second or holiday home as their primary investment motive.
Khaleej Times
22-04-2025
- Business
- Khaleej Times
UAE attracts over 7,000 millionaires in 2024; 53 per cent increase from 2023
The UAE attracted 7,200 millionaires last year, an increase of 53 per cent over the previous year, taking the number of high net worth individuals (HNWIs) to 130,500 in the country, property consultancy Knight Frank said. Quoting data from Henley & Partners, it said the UAE witnessed higher inflows of millionaires in 2024 when compared to the previous two years, attracting 4,700 in 2023 and 5,200 in 2022. At the end of last year, there were 325 resident centi-millionaires with $100-plus million in investable wealth and 28 billionaires — figures that have surged by 110 per cent over the past decade. The majority — 31 per cent — of millionaires who relocated to the UAE came from India, followed by the Middle East (20 per cent), Russia & CIS (14 per cent) and the UK and Europe (12 per cent). It added that the UAE became the 14th-largest wealthiest market globally, Knight Frank said in the Private Capital Report released on Tuesday. Interestingly, the number of dollar millionaires in the UAE almost doubled over the past decade, making it the second-fastest growing wealth market worldwide. Due to uncertainty around the US tariff row and other geopolitical crises, the UAE has attracted a large number of millionaires and professionals due to its safe-haven status. 'With a record-breaking 142,000 millionaires forecast to change their domicile globally in 2025, the UAE stands poised to capture a significant share of this wealth migration wave, strengthening its status as a wealth hub that has successfully transitioned from regional player to global force,' said Dominic Volek, group head of private clients at Henley & Partners. Record prime property sales This strong inflow of millionaires has resulted in a massive boost to the local luxury property market who relocated to UAE, especially Dubai, due to safety and security, low tax rates and zero income tax. 'Real estate remains at the heart of wealth strategies for UHNWIs, both as a store of value and as a means of wealth preservation. Across the Mena region, demand for prime and super-prime homes has reached unprecedented levels, fuelled by both local and international buyers seeking security, stability and long-term growth,' said Faisal Durrani, partner and head of research, Mena, Knight Frank. Dubai has been the most active market for sales of $10 million-plus homes for the past two years, eclipsing both London and New York. The emirate registered 435 home sales of $10 million-plus last year, edging past the 434 transactions recorded in 2023. During Q4 alone, 153 residential sales in excess of US$ 10 million were completed – an all-time record. This momentum continued into 2025, with 111 $10 million-plus sales in the first quarter. This marked the highest Q1 result on record and a 5.7 per cent year-on-year increase from Q1 2024, putting the market on track for another record year in 2025. 'Dubai's luxury residential market continues to defy gravity. Demand, particularly from international buyers, remains unrivalled on the global stage. In 2024 alone, Dubai not only led the world in the number of $10 million-plus home sales but also topped total transaction value, with 435 deals worth $7.1 billion,' Durrani said. He added that the emirate surpassed legacy markets like New York, London and Hong Kong. The Palm Jumeirah remains Dubai's premier ultra-prime location, recording 34 $10 million-plus transactions in Q1 2025 with a combined value of $562.8 million. Emirates Hills followed in second place with 15 sales, totalling $356.7 million. 'Dubai has cemented its position as a premier destination for HNWI seeking real estate for personal use or for investment purposes, with a distinct focus by the global elite on making the city a permanent base or a second home,' said Nicholas Spencer, partner and private capital and family enterprises, Mena, Knight Frank.
Arab News
22-04-2025
- Business
- Arab News
Real estate demand in Saudi Arabia's two holy cities hits $2bn
RIYADH: Saudi Arabia's real estate sector continues to draw international attention, with high-net-worth individuals from nine Muslim-majority countries preparing to commit $2 billion toward property purchases in Makkah and Madinah, according to a new survey. The findings, part of Knight Frank's latest Private Capital Report, show that 84 percent of global HNWIs surveyed expressed interest in acquiring property in Saudi Arabia — with a clear preference for its two holy cities. Nearly half, or 48 percent, of those respondents said they plan to use homes in Makkah as their main residence, pointing to a shift toward long-term occupancy rather than seasonal or purely investment-driven holdings. The trend comes as Saudi Arabia overhauls its property sector to position itself as a global tourism and business hub by the decade's end, in line with its Vision 2030 diversification strategy. Faisal Durrani, partner and head of research for the Middle East and North Africa at Knight Frank, said: 'The region's sustained economic growth, underpinned by ambitious national visions and strategic policy reforms, has reinforced its position as a global investment hub.' Durrani added that real estate remains a preferred investment vehicle for ultra-high-net-worth individuals seeking to preserve wealth. 'Across the MENA region, demand for prime and super-prime homes has reached unprecedented levels, fueled by both local and international buyers seeking security, stability and long-term growth,' he said. Earlier this month, S&P Global said the outlook for Saudi Arabia's property sector remains positive in the near term, driven by population growth, rising tourism, and Vision 2030-led initiatives. The Real Estate General Authority projects the market to reach $101.62 billion by 2029, with a compound annual growth rate of 8 percent starting in 2024. UAE draws global wealth Regionally, the UAE continues to attract high-net-worth migration. Knight Frank noted that 7,200 millionaires relocated to the country in 2024, boosting its total resident population of affluent individuals to 134,000. The report also found the number of dollar millionaires in the UAE stood at 130,500 as of December 2024, ranking it the 14th largest wealth market globally. The emirates also host 325 centi-millionaires — those with liquid wealth exceeding $100 million — and 28 billionaires. According to Knight Frank, 31 percent of the millionaires who moved to the UAE over the past decade came from India, followed by 20 percent from the Middle East and 14 percent from Russia and the Commonwealth of Independent States. 'With a record-breaking 142,000 millionaires forecast to change their domicile globally in 2025, the UAE stands poised to capture a significant share of this wealth migration wave, strengthening its status as a wealth hub that has successfully transitioned from regional player to global force,' said Dominic Volek, group head of private clients at Henley & Partners, in a statement. Luxury sales surge in Dubai Wealth migration is translating into a property boom in Dubai, now the world's most active market for $10 million-plus home sales for two consecutive years, ahead of London and New York. In 2024, the city recorded 435 ultra-luxury home transactions, compared to 434 the previous year. A record 153 such deals were closed in the fourth quarter of 2024 alone, while the first quarter of 2025 saw another 111, up 5.7 percent from the same period last year. 'Dubai's luxury residential market continues to defy gravity. Demand, particularly from international buyers, remains unrivaled on the global stage,' said Durrani. 'In 2024 alone, Dubai not only led the world in the number of $10 million-plus home sales, but also topped total transaction value, with 435 deals worth $7.1 billion.' 'Dubai has firmly established itself as the global epicenter for ultra-luxury real estate – surpassing legacy markets like New York, London and Hong Kong. It's a staggering achievement for a market that, until recently, was considered relatively young,' he added. Palm Jumeirah retained its position as Dubai's premier ultra-prime location, recording 34 transactions worth more than $10 million in the first quarter of 2025, with a combined value of $562.8 million. Emirates Hills followed, with 15 deals totaling $356.7 million. 'Dubai has cemented its position as a premier destination for HNWI seeking real estate for personal use or for investment purposes, with a distinct focus by the global elite on making the city a permanent base or a second home,' said Nicholas Spencer, Knight Frank's partner- Private Capital and Family Enterprises, MENA. Broader MENA trends In the wider region, Knight Frank said Qatar's residential market is also drawing interest from GCC nationals and GCC-based expatriates. The firm identified $537.5 million in private capital globally that is actively seeking residential real estate in Qatar. Meanwhile, Egypt's real estate market remains a key area of interest for GCC investors. 'GCC investors' interest in Egypt's second homes market underscores the country's appeal as a prime real estate destination. The combination of lifestyle benefits, potential for high rental yields, affordability and strong strategic ties to the GCC all add to the country's allure,' added Knight Frank.
