Luxury real estate in the UAE is attracting more investment than ever. In 2023, $64 billion worth of transactions took place in Dubai alone, with prime property sales surging over 50%. High-net-worth individuals (HNWIs) and global investors continue to drive demand, looking for both strong returns and long-term residency options.

Government policies are adding momentum. The expansion of freehold ownership, long-term visas, and regulatory reforms are making the market more accessible, bringing in a wave of buyers, developers, and businesses. As a result, opportunities are growing—not just for investors but across the real estate, construction, and corporate services sectors.

Growth and key trends

The demand for high-end real estate in the UAE is showing no signs of slowing down. In the first half of 2024, Dubai recorded a 34% increase in transaction values, with off-plan properties making up 60% of all sales. Investors are betting on long-term growth, and the numbers back them up.

Property prices in prime locations—Palm Jumeirah, Downtown Dubai, and Jumeirah Bay Island—have been rising between 5-8% annually, with some areas seeing even stronger appreciation. Rental yields also remain a major draw, averaging 7%, far outperforming other major markets like London (2.4%) and New York (4.2%).

At the top end of the market, ultra-luxury sales are surging. Properties priced above AED 15 million have doubled in sales volume, driven by foreign investors looking for secure, high-value assets. The Golden Visa programme has only reinforced this trend, attracting buyers who see UAE residency as an added benefit of real estate investment.

Government initiatives driving investment and development

Policy shifts are shaping the market, opening up new investment opportunities while ensuring long-term stability. One of the biggest changes is the expansion of freehold ownership to Sheikh Zayed Road and Al Jaddaf, giving foreign buyers access to prime areas that were previously restricted.

Transparency is also improving. The Smart Rental Index, introduced this year, classifies residential buildings based on quality, location, and rental performance. This gives investors better visibility into potential returns and market positioning.

New mortgage regulations from the UAE Central Bank are another factor at play. Lending on Dubai Land Department (DLD) and brokerage fees is now restricted, which increases upfront costs for buyers but discourages speculative, short-term flips, keeping the market stable.

Meanwhile, long-term residency programmes remain a major draw. The Golden Visa and 10-year property investor visa continue to attract HNWIs who see the UAE as both a safe investment and a desirable place to live.

How this benefits real estate firms and construction companies

The surge in property activity is fuelling growth across multiple industries. Real estate firms are seeing a sharp rise in transaction volume, creating more demand for brokers, agents, and property management services. The expansion of freehold ownership is also making high-value international sales a bigger part of their business.

For developers and construction companies, large-scale projects are driving demand. Expo City, DAMAC Lagoons, and Emaar Beachfront are just a few examples of multi-billion-dirham developments reshaping the market. Similarly, branded residences and ultra-luxury homes are becoming a major focus, with high-end buyers looking for exclusivity and top-tier amenities.

Sustainability is also playing a bigger role. Developers are incorporating LEED-certified buildings, smart home technology, and eco-conscious materials, creating demand for specialised expertise in energy-efficient construction.

Outlook: The future of the UAE’s luxury property market

With strong demand shaping the market, high-end developments will remain a focal point for investment. Branded residences, waterfront communities, and mixed-use projects are set to expand, attracting both buyers and developers looking for long-term value.

At the same time, expectations in the sector are shifting. Eco-conscious design and smart technology are becoming priorities. Investors are looking at properties with integrated automation, energy efficiency, and sustainability features which which are influencing both new developments and renovations.

For those looking to capitalise on these trends, engaging a professional with experience in UAE market entry, corporate structuring, and compliance is the best way to take advantage of these opportunities.

How Can Sovereign PPG Help?

Sovereign PPG has extensive experience supporting investors and businesses entering the UAE’s real estate market. Our team has close connections with government authorities and free zone regulators, ensuring a smooth and efficient setup process.

We handle every aspect of company formation, from structuring and licensing to visa processing and compliance, allowing investors and businesses to focus on opportunities in the market.

For expert assistance with company setup, restructuring, or corporate services in the UAE, contact us at +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi. You can also email sovppg@sovereigngroup.com.com or complete the contact form below—we’d be happy to assist you.