Dubai real estate market Archives - Blog

The UAE has earned its position as one of the world’s most desirable destinations for holiday homes, ranking fourth globally with a Vacation Score of 65.4 out of 100, according to a recent international study by a leading consultancy, and highlighted by Property Finder.

In a list traditionally loomed by countries with long-established tourism histories such as Spain, France, and Portugal, the UAE’s rise is impressive. In the UAE, a notable change can be seen clearly. There is a shift in global buyer priorities: as it’s no longer only about vacations, but about pleasing destinations and places that offer connectivity, stability, lifestyle value, and long-term investment security.

For Dubai in particular, this ranking reinforces what buyers and investors have already been experiencing on the ground: the city has evolved into a global hub for second homes, holiday homes, and real estate investments.

A Global Ranking That Reflects Modern Buyer Preferences

The study assessed 32 countries using a wide range of criteria, including affordability, tax structure, accessibility, rental returns, infrastructure, and lifestyle appeal. While Spain ranked first due to its Mediterranean climate and heritage, and France and Portugal followed closely with their cultural and leisure appeal, the UAE stood out for very different and increasingly important reasons.

The UAE’s position among the top five, ahead of markets such as the United States, highlights how modern infrastructure, investor-friendly policies, and global accessibility now weigh as heavily as natural beauty in vacation home decisions.

Accessibility and Infrastructure: A Key Competitive Advantage

One of the UAE’s strongest performance indicators is its accessibility and infrastructure, where it scored an impressive 88.2 out of 100, among the highest globally.

With:

Eight international airports
Six domestic airlines
Direct flights to over 600 destinations worldwide

The UAE is one of the easiest countries in the world for frequent travel. For second-home owners, the connectivity the UAE offers is very important. Whether visiting for long stays, short weekend breaks, or business with leisure, homeowners can access their properties with minimal effort.

Dubai, in particular, benefits from its position as a global aviation hub, making it highly attractive to international buyers from Europe, Asia, Africa, and the America.

Investor-Friendly Regulations and Long-Term Security

Another prominent factor behind the UAE’s strong ranking is its progressive property-ownership framework. The country allows 100% foreign ownership in designated areas and does not impose annual property taxes, a significant advantage compared to many real estate markets.

In addition, initiatives such as the Golden Visa provide long-term residency options for eligible real estate investors, offering stability and peace of mind. For buyers looking for a second home that also benefits as a long-term asset, these policies make the UAE particularly effective.

This clarity around ownership rights, predictable expenditures, and transparency continues to attract expats into Dubai’s real estate market.

Luxury Value and Affordability in a Global Context

Dubai is usually associated with luxury, but the study highlights that the UAE offers strong value for money when compared to other global cities. The country scored 68.1 out of 100 for Affordability and Value, reflecting the balance between quality and cost.

For the same investment, buyers often receive:

Larger layouts
Newer construction
Premium finishes
Access to amenities such as pools, gyms, beaches, and concierge services

From branded residences and waterfront properties to golf-course townhouses and standalone villas, Dubai provides a diverse range of vacation home options that cater to lifestyle seekers, buyers, and high rental yield-focused investors.

Lifestyle Appeal and Tourism

The UAE’s growing appeal as a holiday home destination is also rooted in lifestyle. Beyond iconic landmarks and beaches, the country has invested heavily in safety, hospitality, entertainment, and community living.

Dubai’s year-round calendar of events, world-class dining, luxury retail, and family-friendly infrastructure make it attractive not just for short stays but for longer visits and travel. The city’s cosmopolitan environment attracts global audience that is seeking comfort, reliability, and modern living standards.

For many buyers, a holiday home in Dubai is not just a seasonal investment but a flexible asset that can be enjoyed personally and generate rental income when not in use.

A Shift in How Buyers Choose Holiday Homes

The findings from Property Finder’s analysis point to a broader shift in buyer behavior. Today’s second-home buyers prioritize:

Mobility and global access
Legal clarity and ownership security
Stable economies
Quality infrastructure
Lifestyle convenience

While traditional destinations still hold strong appeal, the UAE’s ability to offer dependability alongside lifestyle is becoming a decisive factor. In a rapidly changing global environment, buyers increasingly value locations that provide long-term certainty without compromising on experience.

Dubai’s Holiday Home Market: A Growing Opportunity

Dubai’s ranking among the world’s top vacation home destinations instantly supports the continued growth of its holiday home sector. Demand for professionally managed, well-located short-term rental properties is rising, pushed by tourism, business travel, and extended stays.

Premium locations such as Downtown Dubai, Palm Jumeirah, Dubai Marina, and Business Bay remain particularly attractive for holiday home investors due to strong occupancy rates and consistent rental demand.

This is where experienced real estate firms play a vital role by helping buyers identify properties that balance lifestyle appeal with performance.

Conclusion

The UAE’s ranking as the fourth-best country globally for vacation homes confirms what the market has been signaling for years. Dubai is no longer just a tourism destination; it is a global lifestyle and investment hub offering accessibility, security, and long-term value.

For buyers considering a second home, investors exploring holiday rentals, or first-time entrants into Dubai’s real estate market, the fundamentals remain strong and future-focused.

To explore premium holiday homes in Dubai’s most in-demand locations, read our blog and check our holiday home collection on our website. Stay informed, discover exclusive offers, and see how Luxliving continues to set the standard for exceptional living and smart property choices in Dubai.

Dubai is one of the world’s most significant real estate and lifestyle destinations. In a landmark study by a global property consultancy, the emirate has been officially ranked the best global rich city, surpassing New York and 28 other major cities in attracting high-net-worth individuals (HNWIs).

This recognition is more than another headline. It reflects Dubai’s rising influence as a secure, tax-friendly, future-ready city and directly impacts real estate opportunities for end users, investors, sellers, and first-time buyers.

Why Dubai Is Now the World’s Most Attractive City

According to a new report, 30 global destinations were considered, and Dubai was found to be the most welcoming city for the world’s elite. Several factors explain this surge in global demand:

Tax-Free Advantage, That Few Cities Can Only Match

Dubai offers one of the most favourable tax environments globally, including:

0% capital gains tax
0% inheritance tax
0% wealth tax

This allows wealthy individuals and families to maintain and grow their wealth more efficiently than in traditional financial centres such as London, Hong Kong, or Paris.

World-Class Family Infrastructure

Dubai has the highest number of international schools in the world, with waiting lists growing as more global families relocate.

This makes the city a prime destination for those seeking high-quality education, diverse curriculums, and stability for their children. For families planning long-term relocation, Dubai ranks higher than nearly every major global hub.

Safety and Lifestyle Appeal

Dubai’s security levels, lifestyle, healthcare standards, and leisure infrastructure make it an ideal environment for wealthy families. Its combination of safety and luxury is one of the strongest pull factors for global HNWIs.

Growth of Global Wealth Fuels Demand for Dubai Real Estate

The global wealthy population is expanding quickly.

Over 680,000 new USD millionaires were created in 2024, a 1.2% rise.
More than 5 million additional millionaires are expected by 2029.

As wealth grows globally, investors are becoming more selective about where they choose to live, invest, and secure long-term residency. Dubai’s pro-business environment, strong currency, and tax-efficient policies are attracting this new wave of affluent buyers.

The UAE’s Golden Visa Continues to Drive High-Value Relocations

One of the most powerful incentives attracting global wealth is the UAE’s 10-year Golden Visa. A residency permit with minimal tax obligations.

Foreign investors can qualify by investing AED 2 million in real estate, making Dubai one of the most accessible global hubs for long-term residency through property ownership.

For investors, this means:

Long-term residency benefits
Strong asset appreciation
A stable and secure investment environment

The Golden Visa plays a major role in Dubai’s rise as a global magnet for HNWIs.

The Shift Away From Traditional Financial Hubs

The world’s wealthy are moving away from old financial centres and into tech-enabled, high-growth cities. Cities like Shenzhen and Bengaluru recorded triple-digit growth in millionaire populations over the past decade. Meanwhile, Asian hubs such as Shanghai, Bangkok, and Tokyo benefited from rapid regional economic expansion. Dubai stands out in this new global landscape by combining the strengths of both worlds: tech innovation, economic growth, business stability, and a traditional city lifestyle.

Why London and Other Mature Cities Are Losing Appeal

Inheritance tax has become one of the biggest factors influencing where older, wealthy individuals choose to buy property.

London, traditionally a favourite among affluent families, has experienced reduced demand due to changes in its financial landscape and tax structure. While the city still ranks high for lifestyle, its appeal has weakened among older investors and families seeking long-term stability and tax efficiency.

By comparison:

The US offers higher thresholds
The Middle East, especially the UAE, has no inheritance tax at all

This positions Dubai as a far more favourable option for wealth preservation.

What This Means for Dubai’s Real Estate Market

Dubai’s rise as the world’s most attractive rich city creates powerful opportunities across the real estate sector. Whether you are an end user, investor, or first-time buyer, here’s why the outlook is positive:

1. Strong Demand Across Prime and Luxury Segments

With high-net-worth individuals relocating, communities like Palm Jumeirah, Emirates Hills, Dubai Hills, and Jumeirah Bay Island continue to see strong demand and premium pricing.

2. Rising Interest in Family-Friendly Communities

Areas with top schools, parks, and amenities, such as Arabian Ranches, The Springs, and JVC, remain highly attractive to global families.

3. Continued Growth in Off-Plan Investments

Developers are launching high-quality, lifestyle-driven projects that appeal to wealthy relocators seeking brand-new homes and modern amenities.

4. Long-Term Market Stability

Dubai’s economic policies, residency pathways, and tax benefits support sustained, stable real estate growth.

Who Benefits Most From Dubai’s Global Ranking?

End Users: Enjoy a stable, secure, and well-planned city designed for long-term living.
First-Time Buyers: Benefit from strong appreciation potential and accessible investment entry points.
Investors: Gain exposure to one of the world’s most resilient and future-focused real estate markets.
Sellers: Attract a growing pool of wealthy international buyers seeking relocation properties.

Dubai’s ranking is not just a recognition; it’s a signal that demand, long-term interest, and global credibility are strong and rising.

Conclusion

Dubai’s position as the world’s best global rich city reflects its economic strength, visionary leadership, and appeal. As more wealthy individuals relocate, invest, and build long-term lives here, the real estate market will continue evolving with confidence and stability.

Whether you are exploring your first property purchase or expanding your investment portfolio, now is the right time to take advantage of Dubai’s momentum.

At Luxliving Real Estate, we provide expert guidance, premium listings, and up-to-date market updates to help you make informed decisions in one of the world’s most dynamic property markets. Visit our website and read our latest blogs to stay ahead of Dubai’s evolving real estate market.