What Drives Demand For Luxury Apartments In Dubai


What Drives Demand For Luxury Apartments In Dubai?

Figure 1 Dubai apartments for sale (Image alt text)

The beautiful shimmery beaches of Dubai are welcoming the ultra-modern luxury apartments equipped with unrivalled facilities. Dubai real estate has observed a spike in the demand for luxury apartments in Dubai as numerous factors are acting as a catalyst in this scenario. Let’s elaborate further and discuss the top drivers that are contributing to increasing the demand for luxury apartments and buzzing in the bustling metropolis of Dubai.

Top Drivers Increasing Demand for Luxury Apartments in Dubai

The following are the significant factors that are playing their role in increasing the demand for the smart and lavish apartments of Dubai.

Attractive Tax Policies – Exempted! Really?

Dubai’s government remained proactive in introducing several taxes and reforms in recent years. However, the following are the attractive aspects of the tax policies due to which massive numbers of buyers are shagging the apartment properties in Dubai.

  • no personal income taxes
  • exempting foreign investors from capital gains taxes
  • specific goods and services are at a 0% rate and exempted from VAT

As a result of this Dubai real estate has become the haven of luxury property investment. According to the 2018 Wealth Report published by Knight Frank, Dubai now stands at the prestigious third most population place with ultra-high-net-worth individuals (UHNWIs) with a population of over 2 Million. The city is also according to World Cities Report 2023, one of the best cities in the world. Due to this exclusivity of the Dubai region, the demand for apartments in Dubai is increasing.

Figure 2 UAE luxury apartments demand increasing

World-class Infrastructure – Complementing the Luxury life

Complementing the tax-free status and financial hub status, world-class infrastructural development has also contributed to increasing the demand for apartments in Dubai. With the extremely diverse transportation system and exclusive connectivity offering system, the infrastructure of Dubai is attracting customers.  The roads are well-maintained and the infrastructure is also offering a completely automated metro system.

Boosting Economy – Haven for Business Person

The economy of Dubai is constantly growing leading to a high demand for apartments in Dubai. The safe and secure reputation of the city is also contributing to improving the image of Dubai real estate. The apartment properties in Dubai are booming and are offering 2, 3 and 4-bedroom exclusive apartments. With the growing economy, businesses are flourishing in Dubai attracting more tourists and potential buyers.

With the impressive performance of Dubai Real Estate Globally, it is becoming one of the major regions that is attracting buyers. According to the analysis, it is evident that Dubai’s performance is performing robustly with high returns.  As \Andrew Cummings, Head of Residential Agency for Savills Middle East said:

“Dubai’s continued success stems from its maturity as a truly global city with world-class infrastructure and an unmatched quality of life”

Hub of Luxury Living – Experience Extravagant Living

Dubai is without any doubt considered the hub of lavish living offering a blend of comfort, luxury and modernity. The iconic skyline of Dubai offers apartments that are exclusive and are accompanied by facilities which are beyond imagination, from a private chef to valet parking, from a rooftop infinity pool to an outdoor gym, apartments in Dubai offer everything.

Ease of Doing Business

The business dynamics of Dubai or considering the United Arab Emirates is comparatively a lot easier than the 95% of the world. Moreover according to the World Bank’s prestigious ease of doing business rankings United Arab Emirates scams confidently at the 16th spot. This has attracted a lot of customers around the globe to start businesses and buy apartments smoothly and proactively. According to the Department of Economy and Tourism 2022 report for the first quarter it has been found out that the business licensing and registration transactions upsurged by 36%. This reflects the growing economy and how easy it is to do business in Dubai.

Figure3 Dubai Real estate (Image alt text)

Highest Rental Yields Globally

Another major factor that is one of the driving forces for the high demand for luxury apartments in Dubai is it is the place with the highest rental yields globally according to the Global Property Guide Report luxury properties in Dubai costing one million U.S. dollars has the potential of rental yield of (5.19%) comparing to Geneva (3.10%), Berlin (2.95%), Toronto (3.91%), London (2.76%), Paris (2.79%) and Mumbai (2.32%). 


Dubai real estate is performing outstanding, especially in recent years when other real estate in the country is sinking. This clearly shows that there are some of the major driving factors that are influencing positively the demand for luxury apartments in Dubai. Some of the major factors that are identified and should be looked out for include Attractive Tax Policies, World-class Infrastructure, Boosting Economy, Hub of Luxury Living, Ease of Doing Business, and Highest Rental Yields Globally. Therefore, if you are planning to buy a luxury apartment in Dubai, you will remain in profit.



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