With 176 high-end home sales in the first half of 2023, Dubai becomes the busiest market in the world for homes costing $10 million or more.
According to Knight Frank’s most recent survey, exclusive communities like Palm Jumeirah and Emirates Hills dominate sales, making up 63% of purchases worth $10 million or more. The national average for sales is $16.5 million.
“Furthermore, with 176 $10 million home sales in the first six months of 2023, the city has already achieved 79 percent of the total number of $10 million homes sold in 2022,” said Faisal Durrani, Partner – Head of Middle East Research. “In addition, with average transacted prices continuing to hover at around Dh6,900 per square foot or about $1,800 per square foot, the emirate continues to offer relatively affordable access to luxury living.”
Property values around the city have been significantly impacted by the increased number of sales of luxury homes. Apartment price changes were 15% annually as of the end of June 2023, while price increases for villas were a staggering 46%.
According to Knight Frank, there is a continuing diversity in buyer characteristics and tastes, with Chinese nationals fast reemerging as significant players in the city’s residential market.
According to Andrew Cummings, Partner – Head of Prime Residential, the sophisticated tastes of Dubai residents wanting both utility and a feeling of presence within the city continue to fuel a solid demand for luxury properties in the resale market, offering immediate occupancy.
“An impressive 66 percent of buyers intend to personally utilize the properties, further attesting to the significance of this trend,” said Cummings. “In parallel, within the realm of off-plan developments, 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.”
“These market dynamics underline the compelling allure and enduring desirability of such properties, solidifying their position as coveted assets within Dubai’s esteemed real estate landscape.