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🏡 Dubai’s Luxury Market Hits Record High

Plus: Manhattan median rent soars to $4,500 and REITs are outperforming the S&P 500 by 5% this year.

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Short Squeez
March 17, 2025

Good morning! Manhattan's rental market is heating up, with median rents soaring to $4,500 in February—a 6.4% increase from last year. Bidding wars have intensified, occurring in nearly 27% of new leases.

Meanwhile, REITs are emerging as a safe haven amid market volatility, offering high dividends and outperforming the S&P 500 by 5% this year.

Plus: Why holding off on a home is a bad idea and how is return to office impacting the residential real estate market.

SQUEEZ OF THE DAY

Dubai’s Luxury Market Hits Record High

Dubai’s ultra-luxury real estate market is breaking records, proving once again that the city is a global hub for the ultra-wealthy. In 2024, 435 transactions surpassed the $10 million mark, edging past the previous record of 434 set in 2023.

The biggest headline? A custom-built villa on Jumeirah Bay Island just sold for AED 330 million ($89.85 million)—setting a new all-time record for the island.

This surge in high-end sales is being driven by a flood of foreign investors from Europe, China, and India looking for prime real estate in a tax-friendly environment. Dubai’s zero income tax, political stability, and investor-friendly policies have made it a magnet for high-net-worth individuals escaping economic uncertainty in other parts of the world.

The city's luxury property market has also been fueled by a tight supply of premium properties, with developers catering to the ultra-rich by creating custom-built mansions that come with everything from private beaches to helipads and underwater garages.

Even in a softening global real estate market, Dubai’s high-end properties are in demand, with buyers snatching up properties within days of listing. Some of the city’s most prestigious areas, including Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island, have seen prices double or even triple in recent years.

Billionaire Island, an ultra-luxury enclave known for its nine-figure price tags and over-the-top mansions, is becoming the go-to destination for those who see a $100 million home as just another asset class.

Takeaway: Dubai’s luxury market isn’t just booming—it’s setting new global benchmarks. With wealthy buyers treating real estate like a stock portfolio, prices aren’t showing signs of slowing down anytime soon. If you were hoping for a market cooldown, you might be better off buying a yacht and docking it next to a billionaire’s mansion instead.

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