Rich investors were active in Dubai’s real estate market in 2023, as evidenced by the over 92% increase in sales of $10 million homes, reaching a total of 431. When it comes to these price tags, several records were broken or set in the year, and in 2024, the trend is expected to continue.
“Dubai has doubled down on its position as the world’s most active $10 million plus homes market,” said Faisal Durrani, Partner – Head of Research for MENA at the property consultancy Knight Frank.
The homes that sold for more than $10 million in the last three months of 2023 saw a 28% increase in value from the previous year.
“The depth of demand from international buyers for Dubai’s most luxurious homes is also reflected in the fact that city-wide listings above $10 million fell by 8.9 percent last year,” said Durrani. Developers are still scrambling to respond to the emirate’s meteoric rise as one of, if not the most sought-after luxury-second home markets in the world.”
In the first nine months of 2023, Dubai sold over twice as many properties for over $10 million as its closest rival, New York, with 159 deals compared to 323 in Dubai.
“Dubai has doubled down on its position as the world’s most active US$10 million-plus homes market”– Faisal Durrani of Knight Frank
Build more multi-million dollar homes
They are scrambling. Developers rushed to market in the second half of 2023 with projects, both high-rises, and communities, that would probably satisfy the needs of a discriminating buyer and be prepared to invest a substantial amount of money to meet those needs.
“Indeed, the voracity of international ultra-high-net-worth demand has also super-charged the $25 million plus (property) market,” said Durrani. “The number of homes trading at this uber-swanky end of the market doubled in 2023 to 56 deals worth $2.3 billion”.
Palm and Jumeirah Bay
When purchasing a property for $10 million, Palm Jumeirah continues to be the most popular option, followed by Jumeira Bay Island. Despite this, according to Will McKintosh, Regional Partner and Head of Residential, MENA, Palm Jumeirah had “9.5 percent less homes for sale last year than in 2022, reflecting the buy-to-stay and buy-to-hold attitude of the bulk of purchasers.”
“The island’s location at the heart of New Dubai and recently achieved prestigious ‘Blue Flag’ status only adds to its appeal amongst the world’s elite looking for instant access to the ‘Dubai life’ ”.