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Luxury home buyers spent $1.59 billion on properties worth $10 million or more in Dubai in the third quarter of 2023.
Knight Frank data showed the amount spent on super prime homes has now reached $4.91 billion so far in 2023, with 277 properties in the luxury bracket sold.
Faisal Durrani, partner, head of research, MENA, said Dubai was the busiest market for high value properties in the first half of the year, ahead of New York, Hong Kong and London.
The average transacted price for high value homes was at AED 6,557 per sq. ft. at the end of Q3, according to Knight Frank’s analysis, with the Palm Jumeirah accounting for 52.3% of total sales in the $10 million and above price bracket.
However, Umm Suqeim Third, which includes the Madinat Jumeirah Living development, has seen average prices of AED 15,700 per sq. ft., 62% higher than its nearest competitor, Business Bay, the real estate company said.
Durrani said prices have been rising for nine consecutive quarters in the third market cycle of the emirate’s real estate market. “Dubai’s prime neighbourhoods of the Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island, have been and continue to be the real stars of this cycle, leaving prime values 15.9% higher than this time last year,” he said.
Knight Frank said the city’s property market is still dominated by cash buyers. Prime market stock is restricted, so luxury home demand, particularly for beachfront homes, is high, as seen in the selling out of the initial tranches of villas on the Palm Jebel Ali, the company added.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
