According to Knight Frank, a global property consultant, 105 properties valued at more than $10 million were sold in Dubai in the first three months of this year, a 19% increase from Q1 2023.
Faisal Durrani, Partner – Head of Research, MENA, explained, “The level of deal activity in Dubai continues to strengthen, particularly at the top end of the market, where the near constant stream of international high-net-worth-individuals vying for the city’s most expensive homes persists.
“The laser-like focus of the global wealthy on Dubai is best reflected in the rapid deterioration in the volume of $10 million+ homes for sale, which has fallen by 59 percent across the city over the last 12 months to just 864 homes.”
Six percent more than in Q1 2023, the total value of luxury homes sold in Q1 was $1.73 billion. This expands on Dubai becoming the busiest market for homes priced at $10 million or more worldwide.
According to Knight Frank, Dubai had 431 home sales of over $10 million in the previous year, almost eighty percent more than the next closest competitor, London (240). In 2023, New York (211) completed the list of the top three most active luxury home markets worldwide.
With $628 million in transactions, Palm Jumeirah led the luxury home market in Q1 and accounted for 36.3 percent of all sales. In second and third place, respectively, were Jumeirah Bay Island (11.1%) and Dubai Hills Estate (7%).
In terms of the total number of luxury homes sold, Palm Jumeirah (39) was first, but Business Bay (seven) and Palm Jebel Ali (ten) had a higher number of sales of upscale properties than Jumeirah Bay Island or Dubai Hills Estate.
Away from the attention-grabbing Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills, other markets—like Dubai Hills Estate, for example—are quickly gaining traction with buyers of luxury real estate, according to Knight Frank.
Will McKintosh, Regional Partner and Head of Prime Residential, MENA, said, “Dubai Hills Estate has quietly for some time been rising up the ranks as not only one of Dubai’s most sought-after markets for domestic buyers, but now luxury home buyers are increasingly active here too.
“The relative proximity to both Downtown and New Dubai, combined with access to an international school, excellent neighborhood facilities and amenities, and, of course, its abundance of green space, is quickly making Dubai Hills Estate one of Dubai’s most desirable neighborhoods. Prices have unsurprisingly responded to the growing demand to live here and have risen by almost 11 percent in the last 12 months, while the number of homes available for sale has fallen by 75 percent to just over 1,000 units this past March.”
Prior research conducted by Knight Frank for its Destination Dubai 2023 report revealed that global high net worth individuals (HNWI) prioritize having access to parks and green spaces above all other factors when contemplating an investment in the emirate.
Prime Resurgence
Knight Frank reports that there has been a notable upsurge in the performance of Dubai’s premium residential market, encompassing Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills.
Durrani concluded, “After growing by 16.3 percent in 2023, following an extraordinary 44.4 percent increase during 2022, Dubai’s prime residential market has grown by 26.3 percent over the last 12 months, easily making it one of, if not the fastest growing prime residential market globally. While these startling growth rates are phenomenal, it does not take away from the fact that Dubai’s luxury homes market remains one of the most affordable in the world.
“Indeed, $1 million secures some 980 square feet of prime residential space in Dubai, compared to just 366 square feet in New York, 355 square feet in London, or 172 square feet in Monaco.”