Design and Innovation News

The recent Knight Frank report has sparked widespread interest in the dynamics of real estate prices in Dubai. Nearly one in five homes in the city is now valued at over $1 million. Experts emphasize that this growth is not speculative. New real estate regulations, which have increased the size of the down payment, have reduced short-term investor activity, with the majority of buyers now being end-users. This stable structure creates favourable conditions for further market development. In this context, interior design becomes a key factor that not only meets the owners' needs but also enhances the value of the properties.

"We see a similar trend among our clients," says Ekaterina Patalina, Founder of interior design firm Cont de Arch. "Owners are increasingly viewing their homes as long-term investments and are paying more attention to functional and comfortable designs that align with their real needs." According to the design bureau, over the past two years, demand for bespoke projects has increased by 22%, while requests for redesigning high-end properties have risen by 18%.

Market Dynamics

• Knight Frank predicts an 8% increase in Dubai real estate prices by 2025, making the market attractive to investors
• Approximately 20% of homes in Dubai are now valued at over $1 million
• The growth in real estate prices is attributed to non-speculative factors
• Ekaterina Patalina, Founder of Cont de Arch, says owners viewing their homes as long-term investments

Knight Frank forecasts an additional 8% price increase by 2025, making the market even more attractive to investors. However, in the face of growing competition, projects that prioritize not only architecture but also thoughtful design are emerging as the winners. Owners are increasingly opting for solutions that combine functionality, sustainability, and modern technology. According to the bureau, integrating smart technologies and sustainable materials can increase the value of a property by 10-15%.

One of the key challenges in the market is the shortage of villas in prestigious areas. As a result, there has been a rise in interest in renovations. Around 30% of Cont de Arch's clients requested redesign projects in 2024, which is 12% more than the previous year. This highlights how property renovation is becoming an important tool for increasing liquidity — owners are willing to invest in upgrading their homes, knowing that it will strengthen their long-term investment.

The Dubai real estate market continues to evolve. However, as research shows, success will not only depend on the pace of construction but also on the ability to offer modern design solutions that meet the demands of today's buyers and enhance their investments.

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