Dubai’s luxury property market shows no signs of slowing
It remains one of the most affordable luxury markets in the world adding to its appeal
The momentum in Dubai’s prime luxury real estate market remains strong, as evidenced by the recent transaction facilitated by Sotheby’s International Realty. A six-bedroom villa nestled in the vibrant heart of Jumeirah, Umm Al Sheif, was sold for Dh80 million ($20 million), marking a significant milestone for the area.
Rida Jaber, Associate Director at Dubai Sotheby’s International Realty, said: “The sale of the Umm Al Sheif villa illustrates Dubai’s appeal as a global hub for high-end real estate transactions and the ongoing demand for prime and super prime properties in the city.”
In April, Sotheby’s International Realty successfully brokered the sale of the third-most expensive villa in Dubai, commanding an impressive selling price of Dh148 million. Spanning a 80,000 sq ft area, the 19-bedroom villa property is located in the Emirates Hills community known for its luxurious residences and exclusive lifestyle.
In 2023, Dubai’s luxury home market hit record highs, with sales of $10 million-plus homes nearly doubling to $7.6 billion, surpassing London and New York, according to property consultancy Knight Frank.
Throughout the year, sales in this price range rose by 91 per cent, with nearly a third (28 per cent) of the 431 transactions occurring in the final quarter.
Dubai’s super-prime market, comprising properties valued at $25-million-plus, also experienced a surge, with 56 deals totalling $2.3 billion, double the previous year’s total.
Developers are racing to keep pace with Dubai’s remarkable ascent as one of the most coveted luxury second home markets globally. The Palm Jumeirah saw the majority of deals in luxury and super luxury sales in Dubai in 2023.
During the first nine months of the year, Knight Frank reported that twice as many $10-million-plus homes were sold in Dubai compared to New York – 323 in Dubai versus 159 in New York.
During the same period, the total sales value in Dubai’s $10-million-plus market hit $5.8 billion, nearly doubling that of second-placed London ($3.2 billion).
The leading purchasers in Dubai’s prime market during the period were predominantly from the UK (16 per cent), China (14 per cent), the UAE (12 per cent), and India (7 per cent).
Despite the record-breaking sales of luxury homes last year, Dubai still sits towards the lower end of the spectrum among the most expensive prime markets globally, according a Knight Frank report in February.
With $1 million, you can secure 979 square feet in any of Dubai’s three prime residential districts, placing the city at the 13th spot on the list of the world’s top 15 prime residential markets. In contrast, $1 million buys approximately 172 square feet in Monaco, which tops the list.
“Dubai remains one of the most affordable luxury markets in the world, which only adds to its appeal among the international elite who dominate the upper echelons of the market,” said Faisal Durrani, Partner and Head of research for Mena region at Knight Frank.
Knight Frank predicts a 5 per cent increase in prime residential values in Dubai this year, positioning the city as the third fastest-growing prime residential market globally, trailing Auckland (10 per cent) and Mumbai (5.5 per cent).