"Modest luxury" is the new trend among ultra-luxury home buyers in Dubai

Innovation, culture and art are the new trends for affluent buyers.

While Dubai initially hit the global top for its 5-star glamour and record-breaking architecture, it is now also gaining a reputation for innovation, culture and the arts. As the market continues to grow at an exponential rate, it is also expanding and Dubai is attracting a more diverse demographic.

The appeal of ostentatious wealth remains and has its place in the market, but there is emerging demand for a more discreet and authentic form of luxury. "Modest luxury" is a growing movement among the wealthy, of which another 4,500 millionaires will move to Dubai this year.

What the wealthy residents want

The idea of modest luxury is not new, but is commonly associated with the fashion industry and has been recognized around the world, including in Dubai. While attracting the attention of international tourists remains central to premium brands, Dubai's permanent residents are a key demographic in their own right. And a growing desire for a quieter, more authentic form of wealth is driving their choices.

This has been equally driven by the growth of the city's affluent population, which has risen to 67,900 in June 2023, up from 54,000 in June 2021.

Google searches for the query "modest luxury" have grown by a staggering 614% in the last year, with queries such as "old money" garnering more than 74,000 searches per month. Modest luxury has now spread to all aspects of life, including hospitality, architecture and real estate.

A new kind of experience

But it is Dubai's ability to listen to and adapt to market trends that has brought it to the forefront of international investment and led to its success as a global economic center.

The city has realized the importance of sustainability in the luxury industry, from eco-friendly architecture to living a life imbued with intrinsic connections to all infrastructure. Dubai is focusing on adopting eco-friendly practices and a more responsible and harmonious approach to luxury living.

Easy and chic

Modest luxury places a high value on experiences and products that enrich lives on a holistic level. The UAE's attachment to Snapchat illustrates a shift towards luxury based on exclusivity and genuine endorsement rather than ostentatious wealth.

This change has also led to a deeper desire for authentic hospitality characterized by understated sophistication, greater simplicity and emotional satisfaction, and the global real estate sector and has seen significant changes. In Dubai, it is a shift from 'gilded' luxury elements to a more authentic experience, rich in depth and character, not just price.

Logomania

Logo mania will soon be eradicated, experts say, and exclusivity and craftsmanship will be prioritized. While the city is known for its luxury malls and high-end boutiques (as well as for its developers' commitment to collaborations with well-known brands), small independent stores offering unique, handmade and ethically sourced goods are also thriving. Ultimately, modest luxury clearly favors quality over quantity.

Cultural destinations in Dubai have also grown significantly, with world-class museums, art galleries and cultural districts celebrating both the city's history and the global art scene.

Places such as the Dubai Design District (d3) and Al Fahidi Historic District provide a glimpse into Dubai's rich heritage and artistic expression, fostering a deeper understanding of the intellectual and aesthetic aspects of luxury.

Dubai's transformation into a city of modest luxury is a testament to its adaptability and foresight. As flexible as ever, Dubai is setting new standards for an authentic, sophisticated and refined form of wealth.

Although there will always be a demand for 5-star hotels, Dubai, while combining sustainability, authenticity and a connection to its traditional luxury culture, continues to resonate with the changing desires of a global audience.