Dubai | 14 July 2023: The number of US$10 million home sales in Dubai has climbed to 176 during the first six months of 2023 according to global property consultancy Knight Frank’s latest analysis.
The rising volume of luxury home sales has helped to drive the annual rate of change in all apartment and villa prices across the city to 15% and 46%, respectively, as of the end of June 2023.
Faisal Durrani, Partner – Head of Middle East Research, explained: “Dubai’s luxury homes market continues to attract the attention of the world’s wealthy, with global high-net-worth-individuals remaining laser focused on acquiring second homes in the emirate, as evidenced by the US$ 3.1 billion worth of homes sold in this exclusive price bracket so far this year.
“Furthermore, with 176 US$ 10 million home sales in the first six months of 2023, the city has already achieved 79% of the total number of US$ 10 million homes sold in 2022. In addition, with average transacted prices continuing to hover at around AED 6,900 per square foot, or about US$ 1,800 per square foot, the emirate continues to offer relatively affordable access to luxury living.
“What’s more, with 92 deals, Dubai emerged as the busiest US$ 10 million plus market in the world during Q1 2023, edging past Hong Kong (67) and New York (58)”.
Knight Frank says that the city’s prime neighbourhoods of Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island continue to dominate sales, accounting for 63% of all US$ 10 million plus home sales in Q2. The average sales price during Q2 stood at US$ 16.5mn for all US$ 10mn+ home sales.
Other neighbourhoods such as Jumeirah Golf Estates, Al Barari, Tilal Al Ghaf, and Jumeirah Islands are likely to soon qualify as prime and remain on the consultancy’s “prime watch list”.
Durrani continued: “Improving inland infrastructure could be one way to spur development away from the coast, particularly given the rising importance of green space or parks to international HNWI eyeing up residential purchases in Dubai. We have found that 86% of global HNWI cite parks as their number one consideration when looking at a residential investment in Dubai. Given the limited number of development sites in coastal communities, this may be a way to create more inland prime neighbourhoods”.
Knight Frank points to an ongoing diversity in buyer profiles and preferences, with international buyers from China quickly re-emerging as key players in the city’s residential landscape.
Andrew Cummings, Partner – Head of Dubai Prime Residential explained: “The demand for luxury properties in the resale market, offering immediate occupancy, remains robust, driven by the discerning preferences of Dubai residents seeking both utility and a sense of presence within the city. Our flagship report, Destination Dubai report substantiates this claim, revealing that an impressive 66% of buyers intend to personally utilize the properties, further attesting to the significance of this trend. 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.