Dubai is No:1 location for luxury real estate in 2023

Dubai remains the global number one location for luxury real estate in 2023 as it recorded the highest price jump in luxury homes in the January-to-June period, compared to prices at the end of December.

Across the world, luxury home prices rose in the first half of 2023 by an average of 1.1 per cent in the first half of the year, the Savills World Cities Prime Residential Index for July 2023 reported. Savills defines luxury homes as properties priced in the top 5.0 per cent of the market in each city.

Luxury home prices in the emirate rose 11.2 per cent to an average of $800 per square foot in the January-to-June period, ranking the city at the top among 30 cities that Savills tracks globally, while Hong Kong still has the world’s most expensive prime residential property.

Paul Tostevin, director, Savills world research said, “The slowdown in sales markets – first recorded in the second half of last year – has continued into 2023, in the face of rising interest rates and muted global economic growth."

PNC Menon, chairman of Sobha Realty, a leading luxury residential property developer in the region, said as a global hotspot for high net-worth individuals (HNWIs), Dubai continues to attract buyers and investors in droves by offering them one of the world’s safest and best luxury ecosystems. “A recent spate of investor-friendly reforms and liberal visa rules in addition to tax incentives and a stable economy make Dubai increasingly appealing as a destination of choice to the world’s super-rich and celebrities,” said Menon.

“Certain cities are expected to outperform, with Dubai forecast to lead the way with growth of between 6.0 per cent and 7.9 per cent expected,” said Tostevin. The rise in Dubai luxury real estate prices suggests that the city is a preferred location for wealthy internationals for both domestic and global business transfers.

The pace of the increase in Dubai’s luxury property prices in the first half was more than double that of second-placed Mumbai, which recorded a 4.3 per cent increase to $1,100 per square foot, followed by Cape Town’s 3.3 per cent expansion.