Dubai records highest luxury property transactions in the world, surpassing Hong Kong, New York.
08 July 2023, 12:00 AM
31 August 2023, 12:00 AM
Dubai luxury property market demand continues unabated as it emerged as the busiest $10-million-plus market in the world with 92 deals during the first quarter of 2023, according to Knight Frank’s latest data released on Thursday.
The emirate edged past Hong Kong (67) and New York (58) in terms of $10-million-plus property deals in the January-March 2023 period.
The real estate consultancy said Dubai luxury property sales of $10 million jumped to 176 during the first half of 2023, surpassing $3.1 billion (Dh11.377 billion).
Prime neighbourhoods of Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island continue to dominate sales, accounting for 63 per cent of all $10-million-plus home sales in Q2.
The demand is driven by the inflow of millionaires into the emirate, attracted by strong return on investment, high quality of life, and safety aspects.
As a result of high demand, apartment and villa prices have increased 15 per cent and 46 per cent, respectively, as of the end of June 2023.
However, prices are still relatively affordable with average transacted prices continuing to hover at around Dh6,900 per square foot.
Faisal Durrani, partner and head of Middle East research, revealed that the city has already achieved 79 per cent of the total number of $10-million homes sold in 2022.
Andrew Cummings, partner and head of prime residential, said the demand for luxury properties offering immediate occupancy remains robust, driven by the discerning preferences of Dubai residents seeking both utility and a sense of presence within the city.
“There is a notable surge in interest for opulent branded residences, fuelled by the record-breaking sales and remarkable sell-out achievements witnessed by esteemed brands such as Six Senses, Baccarat, and Bvlgari,” said Cummings.