Although Dubai was initially in the world’s top position for its 5-star chic and breathtaking architecture, it is also gaining a reputation for innovation, culture and art. As the real estate market continues to grow exponentially, the emirate is attracting a more diverse demographic group.
Buying houses with a sea view for expats in Dubai is becoming more common in the world. The appeal of ostentatious wealth remains the same and takes its place in the market, but there is a demand for a more restrained and authentic type of luxury. “Modest luxury” is a growing movement among the wealthy. As a result, another 4,500 millionaires will move to the emirate this year.
What do the rich people want?
The idea of modest luxury is not new, but it is associated with the fashion industry and has been recognised all over the world, including in Dubai. While attracting international tourists remains central to premium brands, Dubai’s residents are themselves a key demographic group.
The growing desire for a quieter and more authentic type of wealth determines their real estate choices. This was driven by the growing number of wealthy people in the city, which rose to 67,900 in June 2023, compared with 54,000 in June 2021.
Over the past year, the number of Google searches for “modest luxury” has grown by a stunning 614%, and queries such as “old money” collect more than 74,000 search terms per month. Modest luxury has spread to all aspects of life, including hospitality, architecture and real estate.
A new kind of experience
It was the emirate’s ability to listen to and adapt to market trends that brought it to the forefront of international investment and success as a global economic hub. The city has realised how important sustainable development is in the luxury industry, from eco-friendly architecture to a life permeated with internal connections to all amenities. The emirate pays special attention to green methods and a more responsible and harmonious approach to luxury living.
Easy and chic
Modest luxury places great importance on experiences and products that enrich life on a holistic level. The UAE’s attachment to Snapchat illustrates the shift to luxury based on exclusive services and genuine ideas, rather than ostentatious wealth.
This change has also led to a deeper search for authentic hospitality with restrained sophistication, greater simplicity and emotional satisfaction, as well as significant changes in the global real estate sector. As a result, Dubai has moved from “gold-plated” luxury elements to more authentic impressions rich in depth and character, not just price.
Experts say that logomania will soon be eradicated, and this will give way to exclusivity and craftsmanship. Although the city is well-known for its luxurious shopping centers and elite boutiques (as well as the desire of developers to cooperate with well-known brands), there are also small independent shops offering unique handmade goods and observing ethical standards.
Ultimately, modest luxury prefers quality over quantity. The emirate’s cultural destinations have also grown significantly – numerous world-class museums, art galleries and cultural districts celebrate both the city’s history and the global art scene.
Such places as the Dubai Design District (d3) and the Al Fahidi Historic District provide insight into the city’s rich heritage and artistic expression to gain a deeper understanding of the intellectual and aesthetic sides of luxury. Turning Dubai into a city of modest luxury testifies to its adaptability and foresight.
As flexible as ever, the city is setting new standards and rules for an authentic, sophisticated and refined type of wealth. Although there will always be demand for 5-star hotels, Dubai, while combining an eco-friendly approach, authenticity and connection with its traditional luxury culture, continues to resonate with the changing desires of a global audience.
Other new market trends in Dubai in 2024
What about new trends in the emirate’s real estate market in 2024? According to experts, they are emerging and will drive the market and its performance this year.
- The first one is moving to the suburbs, as most potential residential property owners want to move from central and prestigious areas to cosy suburban residential areas of Dubai, such as Jumeirah Village Circle or JVC, Dubai South, Town Square, Reem and Arjan. These communities offer affordable prices and increased living space.
- The second one in the real estate market is a strong growth in the number of first-time residential property buyers in Dubai due to a record increase in rental prices associated with high demand. Thus, tenants become owners of residential real estate choosing apartments and inexpensive townhouses in suburban areas worth up to AED 3 million.
- The third is the reconstruction of elite residential projects in prestigious areas by investors and owners before reselling real estate on the market at a higher price.
- Another new market trend is more affordable properties. According to the data, 67,000 residential units will be commissioned in 2024 compared to 50,000 in 2023, which should have a positive impact on sales and customer demand.
- The next market trend includes a new lifestyle, including short-term rentals and flexible living options.
- Another trend is a steady increase in real estate prices in 2024, which will be 3.5% to 5% driven by Dubai’s population growth.
In addition, new trends in the local real estate market include improved customer service through advanced technologies, such as 5G and artificial intelligence, market stability in the middle price range, optimal timing for investors and homeowners to generate high profits and capital gains, as well as increased market diversification in 2023 by boosting the number of off-plan projects and sales of finished real estate. Diversification is expected to continue in 2024, and unfinished projects will be completed in the emirate.
Where to choose the best real estate in Dubai?
The answer is simple – Emirates.Estate. The aggregator will not only provide you with all the necessary information on real estate, a wide range of prices, locations and different communities not only in Dubai, but also in other emirates. In any case, you will be able to choose the best property.
Make it snappy – visit the website as soon as possible and start searching for a house or apartment. After a while, you will find your dream home in the most favorable place.