Dubai’s luxury apartment market is struggling to meet demand, causing rental prices to skyrocket. Real estate experts note that there are very few high-end options available leading to higher rental rates for existing properties. Many high-net-worth individuals (HNWIs) renting in Dubai struggle to find suitable luxury apartments, driving demand and prices even higher.

A recent record-breaking deal involved a European family paying AED 4.4 million for a 10,000 sqft penthouse at The Royal Atlantis Resort on Palm Jumeirah, showcasing the growing demand for such properties.

Experts feel that the definition of luxury is evolving, focusing more on lifestyle, amenities and connections. Despite new projects launching in 2024, supply is still outpaced by demand especially for unique properties in prime locations. Luxury properties now see high demand in secondary markets with off-plan properties selling out quickly at a premium.

The limited availability of luxury rentals along with high returns on investment (5-7% rental yield) is attracting new investors to areas like Palm Jumeirah, Downtown and Business Bay especially in branded residences.