The demand for Dh2 million properties in Dubai remains robust in 2024, driven by investors and end-users keen to secure a 10-year UAE Golden Visa. The long-term residency visa, introduced to attract international talent and investment, requires property investors to purchase assets worth at least Dh2 million. This eligibility criterion has significantly influenced the real estate market, especially for properties within this price range.
Strong Market Performance for Mid-Range Properties
In 2024, properties priced between Dh1 and Dh3 million accounted for the largest share of the market at 48.5%, reflecting a 4.2% increase. Among these, properties valued at Dh2 million are particularly sought after, highlighting their importance in the current market landscape. This price segment saw a notable 30% year-on-year increase in transaction activity during the first half of 2024 compared to the same period in 2023, underscoring the impact of the Golden Visa on market dynamics.
Prathyusha Gurrapu, Head of Research and Consulting at Cushman & Wakefield Core, noted, “The Golden Visa remains a significant driver of demand in the Dubai real estate market. The city’s global socio-economic status, coupled with the benefits of long-term residency, continues to attract both investors and end-users.”
High-Quality Developments Boost Sales
Recent project launches have further fueled demand in this segment. According to Property Monitor’s latest report for July, properties priced between Dh1.5 and Dh2 million saw their market share grow by 3.5% to 14.5%. Notable developments like Palace Residences in Dubai Hills and Arlo in Dubai Creek Harbour have been instrumental in this growth, with average sales prices reaching Dh2,421 and Dh2,601 per square foot, respectively.
Similarly, properties priced between Dh2 million and Dh3 million experienced a 2% growth, driven by high-end projects such as Bayz 101 in Business Bay and townhouses at Park Greens in Damac Hills 2. These properties continue to attract buyers looking for luxurious living spaces with strong investment potential.
Shifts in Market Segments
The data also revealed shifts in other market segments. Properties priced under Dh1 million now represent 29.6% of the market, down by 1.0% month-on-month. Conversely, properties over Dh3 million account for 21.9% of the market, a decrease of 3.2% month-on-month. The Dh5-Dh10 million tier, in particular, saw the most significant decline, dropping by 2.4% to 5.5%.
High-Net-Worth Individuals Eye Golden Visa
In addition to property buyers, high-net-worth individuals are also showing strong interest in the Golden Visa. To qualify, these individuals must deposit Dh2 million into a UAE bank account, making this an attractive option for those seeking long-term residency in one of the world’s most dynamic cities.
In conclusion, the UAE Golden Visa continues to play a pivotal role in shaping Dubai’s real estate market, particularly in the Dh2 million property segment. As the city grows in global prominence, the demand for mid-range properties is expected to remain strong, driven by the benefits of long-term residency and the allure of high-quality developments. For those looking to invest in Dubai, now is an opportune time to explore the vibrant real estate market and secure a place in this thriving metropolis.
