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Dubai's real estate landscape continued to boom in 2023, as the emirate beat London and New York to become the world's biggest market for $10 million plus homes, according to a new report.
Data shared by global property consultancy Knight Frank revealed sales of $10 million plus homes in the emirate rose to 431 residences in 2023, a growth of 92.4% when compared to the previous year’s 224.
The total value of sales above this price point grew by 91% last year to reach $7.6 billion, 28% of which was achieved in Q4 alone, data further revealed.
“Dubai has doubled down on its position as the world’s most active $10 million plus homes market. The depth of demand from international buyers for Dubai’s most luxurious homes is also reflected in the fact that citywide listings above $10 million fell by 8.9% last year,” Faisal Durrani, Partner – Head of Research, MENA, said in a statement.
Second-home market
According to Durrani, developers were also still scrambling to respond to the emirate’s rise as one of the most – if not the most – sought-after luxury-second-home markets in the world.
“Indeed, the voracity of international ultra-high-net-worth demand has also super-charged the $25 million plus, or super-prime market. The number of homes trading at this uber-swanky end of the market doubled in 2023 to 56 deals worth $2.3 billion,” he added.
The data echoes the findings of a report released by Sotheby's this week titled 'International Realty Luxury Outlook'. According to the report, Dubai hit record-breaking sale prices throughout 2023, with super-luxury residences selling for up to $4,000 per square foot.
Knight Frank’s analysis also revealed that during the first nine months of 2023, Dubai had already sold more than twice as many homes priced over $10 million than its nearest competitor, New York, which recorded 159 deals, against Dubai's 323.
Similarly, Dubai’s $10 million plus residential property market registered sales totalling $5.8 billion during Q1–Q3 2023, nearly double the level of runner-up London ($3.2 billion).
Neighbourhood watch
The Palm Jumeirah remained the “epicentre” of luxury home sales in Dubai, accounting for 38.5% of homes sold for more than $10 million during 2023 (or 166 deals), and 39.2% (or 22 deals) of sales of more than $25 million, Knight Frank said.
Will McKintosh, Regional Partner and Head of Residential, MENA at Knight Frank stated Dubai was witnessing genuine end-users and second-home buyers dominating transactional activity, even as inventory levels slipped.
“The Palm Jumeirah, for instance, had 9.5% less homes for sale last year than in 2022, reflecting the buy-to-stay and buy-to-hold attitude of the bulk of purchasers…,” he said.
Following closely behind the Palm Jumeirah was Jumeirah Bay Island, with 47 sales in 2023 and the recently launched Palm Jebel Ali, with 36 transactions.
Tilal Al Ghaf and Mohammed bin Rashid City tied with 29 transactions each.
The Palm Jebel Ali’s record sell-out of the first tranche of homes in September last year also underscored the demand for luxury beachfront homes in Dubai, Knight Frank said in its report.
(Writing by Bindu Rai, editing by Seban Scaria)
