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The number of luxury home sales worth $10 million in Dubai rose to 176 during the first half of 2023, according to the latest report issued by the global real estate advisory firm Knight Frank.
The volume of sales of luxury residential units also witnessed a significant increase, which contributed to an increase in the annual rate of change in the prices of apartments and villas in the city to 15% and 46%, respectively, until the end of June 2023.
Faisal Durrani, Partner and Head of Research Middle East, explained: “Dubai’s luxury home market continues to attract the attention of affluent people from all over the world, with high-net-worth individuals eagerly looking forward to owning a second home in the emirate. This is evident in the $3.1 billion (AED 11.39 billion) worth of homes sold in this exclusive category so far this year.”
And he continued, “Thanks to the sale of 176 homes worth $10 million in the first six months of 2023, the city achieved 79% of the total number of housing units worth $10 million sold in 2022. With continued sales prices ranging up to 6,900 dirhams per square foot, Or $1,800 per square foot, Dubai continues to provide access to a luxurious lifestyle.”
He added, “Moreover, Dubai topped with 92 deals to become the most active market in the category of homes worth more than $10 million during the first quarter of 2023, outperforming Hong Kong 67 and New York 58.”
Major neighborhoods
Knight Frank notes that the city’s main neighborhoods of Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island still dominate sales, accounting for 63% of total home sales, valued at more than $10 million, in the second quarter. The median price of sales in the second quarter was $16.5 million for all homes over $10 million. It is also worth noting that other neighborhoods such as Jumeirah Golf Complex, Al Barari, Tilal Al Ghaf, and Jumeirah Islands are expected to soon qualify as prime neighborhoods and remain on the watch list. Home of Knight Frank.
Durrani continued, “Improving the internal infrastructure could be one way to boost development away from the coast, especially with the increasing importance of green spaces or parks for the global HNWIs who want to invest in residential Dubai. We found that 86% of the global ultra-high net worth (NHNW) consider parks as their first priority when considering residential investment in Dubai. Given the lack of development sites in coastal communities, this could be an opportunity to create more prime neighborhoods further inland.”
“International buyers’ preferences continue to diversify, as buyers from China return to become major players in the city’s housing landscape,” Knight Frank notes.
High demand for luxury real estate
Andrew Cummings, Partner and Head of Luxury Real Estate, said: “Demand for luxury properties in the resale market, which offers the possibility of immediate move-in, continues to be high due to the prominent preferences of Dubai residents seeking to combine practicality with living in the city. This is supported by our major reports, such as the Destination Dubai report, where it was found that 66% of buyers intend to use the properties personally, which confirms the importance of this trend. In the same context, the planned real estate development market is witnessing a significant rise in interest in luxury residences bearing famous brands, thanks to the impressive achievements and record sales achieved by well-known brands such as Six Senses, Baccara and Bulgari. These results also confirm the attractiveness of these properties and the constant desire to acquire them, which establishes their position as desirable assets in the distinguished real estate scene in Dubai.
