As a proud Emirati and the Founder of AHS Properties, I am a passionate advocate of Dubai’s ultra-luxury real estate market. For many years, our Emirate has proven immensely popular among high net-worth individuals (HNWIs) for various reasons, including its wealth of luxurious prime real estate, dynamic economy, and reputation as a safe haven for investors.
That said, Dubai is by no means the only location attracting wealthy property buyers. From North America to the Far East, an elite group of cities around the world have carved out a lucrative niche in the upper echelons of premium property.
So, other than Dubai, which high-end locations are turning the heads of HNWI homebuyers, and – more importantly – why?
London
Starting off strong, London has long since been one of the world’s most popular locations for ultra-luxury real estate. Between steadily rising property prices and an impressive catalogue of luxurious homes, this historic city is replete with golden opportunities for wealthy investors.
The city’s property market boasts excellent returns on investment, with yields enjoying consistently strong growth for many years. More billionaires bought luxury homes in London last year than in 2022, registering a 10% growth in the wealthiest buyers.
London is home to an abundance of outdoor spaces and parks, world-class retail destinations, countless cafés and restaurants, a broad selection of outstanding museums and galleries, and a host of renowned attractions. It is also an international hub for business and financial activities, making it an ideal location for ultra-luxury real estate.
Miami
One of my favourite luxury destinations outside Dubai, Miami is a real gem for ultra-luxury property investors. Located in South Florida, this coastal city offers beautiful beaches, a tropical climate and blue skies galore. What’s not to love?
Miami’s other advantages include a favourable tax environment, a diverse and growing economy, and myriad development opportunities, with more and more ultra-luxury residential and mixed-use projects coming online every year. The city’s downtown area also boasts excellent links to Miami International Airport, adding to its popularity among HNWIs.
With a well-established real estate market, Miami’s ultra-luxury properties have built a strong reputation for holding their value, making them an attractive and secure long-term investment. So, whether you’re looking to buy a high-end home for yourself or simply strengthen your existing portfolio, the ‘Magic City’ is an ideal location.
Monaco
When it comes to ultra-luxury real estate, few destinations can compete with Monaco. With average prices in excess of $5,000 per square foot, it’s fair to say that the market is firmly geared towards the world’s wealthiest investors.
In 2022, the city-state’s real estate transactions soared by more than 18%, and prices have increased by a staggering 60% over the last decade, according to 2023’s Monégasque Real Estate Observatory Report.
This beautiful Mediterranean destination boasts a tax system that has proved extremely popular among foreign investors. What’s more, with limited land available for redevelopment, long-term exclusivity is all but assured, and appreciation rates are impressive, to say the least. Add this to the high levels of privacy and living standards on offer, and it’s difficult to imagine a scenario in which Monaco falls out of favour with HNWI property investors.
New York
No rundown of ultra-luxury real estate hubs would be complete without New York. The ‘Big Apple’ boasts a perennially strong job market, a diverse population and a cosmopolitan energy that has turned it into a magnet for international wealth.
Of course, New York’s appeal extends far beyond business. The city is also home to a never-ending stream of shops, fine-dining establishments and world-class amenities, meaning residents will never run out of things to do.
New York’s ultra-luxury real estate market features a range of options, from stunning penthouses to sprawling waterfront homes. It’s little wonder that in 2022, the city was named the world’s top super-luxury housing market alongside London, and I doubt its appeal will wane any time soon.
Singapore
Singapore is home to a thriving luxury property market – no surprise given that the Global Peace Index ranked the city-state as one of the world’s most stable countries for seven consecutive years. As such, this destination offers a plethora of opportunities for attractive returns.
Premium properties in Singapore’s prime locations have consistently maintained and increased their value on the back of a strong national economy and sustained demand, not to mention low crime rates, sustainable living initiatives and political stability.
According to analysis from Mordor Intelligence, Singapore’s luxury residential real estate market is on course to register a compound annual growth rate (CAGR) of approximately 3% during the period 2024-29, offering further peace of mind to high-end homebuyers.
Ultra-luxury real estate investors tend to prioritise stability, which is why my list features so many well-established locations. That said, HNWIs are also among the most discerning buyers on the planet, so it’s also interesting to see how these cities continue to reinvent themselves to maintain the interest of prospective buyers.
While Dubai will never lose its place as my favourite location for ultra-luxury real estate, I look forward to seeing how its global counterparts continue to develop their premium property offerings over the coming years.
