[Super Rich] Luxury Real Estate Buzz... Billionaires' 'Dubai Shopping'

Global Ultra-Luxury Homes, Q1 Transactions Up 11%
Dubai Leads Luxury Real Estate Recovery

Editor's Note'Stand on the shoulders of giants.' This is one of the widely known investment adages. By paying attention to the eyes and mouths of the super-rich, you can see the direction of money. We deliver everything interesting about the investment trends, words, interests, and movements of the big players who move the global markets. We also deliver news that would interest investors who are currently salaried workers but dream of financial freedom. Please pay attention to the Super Rich corner, which contains vivid global investment news.

The global ultra-luxury real estate market is stirring. Super-rich individuals have begun returning to the real estate market, which was hit hard by the interest rate hikes that began in earnest last year. Among them, billionaires are sweeping up the real estate market in Dubai, United Arab Emirates (UAE).

According to a report by UK real estate information firm Knight Frank on the 1st, in the first quarter of this year, a total of 417 ultra-luxury homes priced over $10 million (approximately 13.2 billion KRW) were traded in the global housing market. This is an 11% increase compared to the previous quarter and the largest scale since the second quarter of 2022.

Dubai is leading the recovery of the ultra-luxury real estate market. From January to March this year, 88 homes priced over $10 million were traded in Dubai, the highest number among major cities. In February, a 9-bedroom apartment sold for $112 million (approximately 148 billion KRW), setting a new record for the highest-priced home. Following Dubai, the number of transactions were recorded as Hong Kong (67), New York (58), Los Angeles (46), Singapore (37), London (36), and Palm Beach (30). The report noted that the ultra-luxury real estate market, which had been subdued due to high interest rates and geopolitical risks, is recovering again.

The reason billionaires are flocking especially to Dubai is due to the tax exemption benefits residents receive. Additionally, emerging super-rich who made large fortunes through cryptocurrency and Russian oligarchs (new tycoons) sanctioned by the West after the Ukraine war are flocking to Dubai, further energizing the ultra-luxury real estate market. Dubai's ultra-luxury home prices rose by an average of 16% last year alone.

Faisal Durani, Middle East Research Partner and Head at Knight Frank, analyzed, "Dubai has built its reputation and status in the international community through excellent transportation, unmatched global connectivity, and progressive leadership," adding, "The demand from wealthy individuals to have a second home in Dubai or to relocate there is unceasing." Liam Bailey, Global Head of Research, explained, "The Dubai (real estate) sales boom has accelerated the rise in luxury property prices since early 2020," and "(the growth rate) far outpaces comparable markets."

Wealthy individuals from North America and Europe prefer properties located on Palm Jumeirah, an artificial island made of sand, and Emirates Hills, developed as a luxury real estate project. On the other hand, Asian investors are mainly reported to seek Business Bay and Downtown, the central commercial areas of Dubai.

Durani said, "Dubai is at a turning point, directly confronting long-established hub cities that have attracted the global wealthy like a magnet, rather than trying to seek recognition."