Dubai luxury home sales skyrocket to $3.1 billion in H1-2023
Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island continue to dominate sales
Dubai: Dubai emerges as the world’s busiest $10 million-plus market, with 176 high-end home sales in the first-half of 2023.
According to Knight Frank’s latest analysis, prime neighborhoods like Palm Jumeirah and Emirates Hills dominate sales, accounting for 63 per cent of $10 million-plus transactions. Average sales prices stand at $16.5 million.
“Furthermore, with 176 $10 million home sales in the first six months of 2023, the city has already achieved 79 per cent 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.”
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The rising volume of luxury home sales has had a significant impact on property prices across the city. As of the end of June 2023, the annual rate of change in apartment prices reached 15 per cent, while villa prices soared by an impressive 46 per cent.
“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.”
- Faisal Durrani of Knight Frank
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 Prime Residential says that 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.
“An impressive 66 per cent 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.