The report comes at a time when Dubai is continuing to push its credentials as a wealth management, banking and family offices hotspot, competing with rival hubs such as Hong Kong and Switzerland.

High net worth individuals around the world are prepared to spend $4.4 billion on residential real estate in Dubai, a report says underscoring how the Gulf jurisdiction remains a property hotspot.

Dubai has taken pole position as the most preferred emirate in the UAE for HNW individuals globally to purchase real estate. Abu Dhabi ranks second, while Sharjah has secured third place this year, according to property consultants Knight Frank.

The desire to own a home in Dubai rises from 28 per cent for those with a net worth of $2 to $5 million to 78 per cent for those who are worth more than $15 million. 

The jurisdiction has seen its fortunes wax and wane since before the 2008 financial crash. In recent years, it has been in the ascendant, launching a hub for family offices, for example, and acting as a magnet for expats of various nations, including those from the UK. Increasingly, Dubai and nearby jurisdictions are seeking to compete against traditional wealth centres such as Switzerland, Singapore, and Hong Kong. In 2020 the UAE entered the "Abraham Accords" with Israel (as did Bahrain), widening capital and intellectual property flows between these jurisdictions.

Knight Frank’s second annual 2024 Destination Dubai report is based on a survey of 371 HNW individuals – 217 outside the Gulf region and the remaining 100 in the Gulf Co-Operation Council group of countries. Together, the respondents have a net worth of $4.5 billion, and they own 1,147 homes in different parts of the world.

“Dubai remains the number one destination for the global HNWI community. Not only has the city cemented its status as the busiest $10 million+ home sales market in the world, but HNWIs continue to clamour for the ‘Dubai life’ and property at the upper echelons of the price spectrum in the emirate is a hotly contested commodity,” Faisal Durrani – partner and head of research, MENA, Knight Frank, said. 

“This [upper] segment of the market is what truly dictates how prices across the mainstream market behave. Last year, total residential transactional volumes approached a record 120,000 deals, worth around $95 billion, yet $10 million+ home sales accounted for only 8 per cent of this figure, by total value of sales,” Durrani said. 

“What is truly extraordinary however is the average budget for ultra-high net worth individuals considering a Dubai property purchase. 25 per cent are prepared to spend between $60 and $80 million on a home in the city, while a further 16 per cent would like to spend over $80 million. Meanwhile the average budget for this exclusive cohort stands at $58.5 million,” Durrani added.