Dubai's real estate market has long been synonymous with luxury and opulence, but in 2024, it is experiencing an even more significant surge, driven by a mix of international buyers and local investors. As one of the world’s leading real estate hubs, the emirate has attracted global attention for its impressive developments, stunning waterfront properties, and tax incentives.

In this blog, we will explore Dubai's expanding luxury property market in 2024, focusing on the role of international buyers versus local investors, as well as examining how these groups are shaping the future of the city's property landscape.

Dubai's Real Estate Market in 2024

Dubai’s luxury real estate market continues to thrive, fueled by robust demand from both international buyers and local investors. According to the Dubai Land Department (DLD), property transactions in Dubai exceeded AED 300 billion in the first quarter of 2024 alone, marking a 9% increase compared to the same period in 2023. This surge is indicative of the city's resilience in a global landscape marked by uncertainty in other markets.

In particular, Dubai’s luxury property market is seeing substantial growth, driven by high-net-worth individuals (HNWIs) from all corners of the globe. This growth is expected to continue into 2025, with the market forecasted to reach AED 400 billion in total property transactions by the end of 2025, according to real estate analysts. The steady influx of international capital, paired with the increased wealth of local investors, is accelerating this upward trajectory.

The Role of International Buyers in Dubai's Luxury Real Estate Market

International buyers have played a pivotal role in driving Dubai’s luxury real estate market. In 2024, foreign investors accounted for more than 50% of luxury property sales, according to data from the Real Estate Regulatory Agency (RERA). Buyers from the United Kingdom, India, Russia, and China are among the leading investors in Dubai, attracted by the city’s favorable tax policies, strategic location, and world-class infrastructure.

For instance, a significant portion of demand is centered on high-end villas and penthouses in prime locations like Palm Jumeirah, Downtown Dubai, and the newly developed Dubai Creek Harbour. International buyers seeking the best real estate property in Dubai have made substantial investments in these areas, with some properties reaching price tags of AED 100 million or more.

One of the key factors attracting international buyers is the city’s freehold property ownership laws. Since 2002, foreign investors have been allowed to purchase property in designated areas of Dubai, a policy that has bolstered the city’s appeal. Additionally, Dubai’s absence of property taxes and capital gains taxes makes it an attractive destination for investors seeking to diversify their portfolios.

The Role of Local Investors in Dubai’s Luxury Real Estate Market

While international buyers continue to dominate the luxury market, local investors are also making significant strides, particularly in the high-end residential sector. Local interest has been fueled by Dubai’s economic resilience, low-interest rates, and the ongoing Expo 2020 Dubai legacy, which has further solidified the emirate’s position as a global business and tourism hub.

In 2024, local buyers, particularly wealthy Emiratis and residents, accounted for nearly 45% of the luxury property transactions, showing a slight increase from previous years. Many local investors are drawn to Dubai’s premium properties as both a wealth-preserving asset and a status symbol. These investors often look for properties in the city’s most prestigious communities, such as Emirates Hills, The World Islands, and Dubai Marina.

Local investors also benefit from special incentives; such as access to Dubai’s affordable financing schemes. This has led to an increase in off-plan property purchases, where investors can lock in properties at a fixed price before the completion of the project. Developers like Emaar and Meraas have reported a rise in demand for their off-plan developments, with local investors making up a large portion of the buyer base.

Key Differences Between International Buyers and Local Investors

While both international buyers and local investors are contributing to Dubai's luxury real estate market expansion, their motivations and purchasing behavior often differ:

Location Preferences:

International buyers tend to prioritize locations that offer iconic views or proximity to international business hubs. This explains the high demand for properties in Downtown Dubai and Palm Jumeirah, which offer both prestige and high rental yields. In contrast, local investors are more likely to invest in established areas with a long-term growth outlook, such as Jumeirah Beach and Emirates Hills.

Property Types:

International buyers often seek large villas or penthouses with cutting-edge design, while local investors are more likely to purchase a mix of luxury villas and apartments, depending on market conditions and personal preferences.

Investment Horizon:

International buyers may view their investments as part of a diversified portfolio, often buying properties for rental income or capital appreciation. On the other hand, local investors frequently buy properties for long-term wealth generation and family inheritance purposes.

Predictions for Dubai's Luxury Real Estate Market in 2025

Looking ahead to 2025, Dubai’s luxury real estate market is set to continue its upward trajectory. Experts predict that demand for the best real estate properties in Dubai will remain strong, driven by the increasing influx of foreign capital and the expansion of the city’s infrastructure. The completion of mega-projects such as Dubai Creek Tower and the ongoing development of the Dubai South area, which includes a new airport and commercial center, will further boost the market.

Additionally, with global political and economic uncertainty driving wealthier individuals to seek safer investments, Dubai’s real estate market for sale in Dubai will remain attractive due to its stability, favorable tax environment, and premium lifestyle offerings.

Conclusion

In conclusion, Dubai’s expanding luxury property market in 2024 is a fascinating blend of international buyers and local investors, each contributing in unique ways. While foreign buyers continue to dominate in terms of total sales value, local investors are also playing a crucial role in sustaining the growth of the luxury market. 

As Dubai’s property market matures, it remains a highly sought-after destination for those looking for both high-end living and lucrative investment opportunities. Whether you’re an international buyer looking for a premium villa or a local investor keen on securing the best real estate in Dubai, the market promises exciting prospects well into 2025. If you are wondering how to buy property in Dubai, it’s essential to consult with the best real estate company in the UAE to guide you through the legal processes and investment options. Stay updated with the latest insights on the Dubai Real Estate Market by following our Facebook page for real-time updates and expert opinions.