Sales of homes in Dubai priced at over $10 million have surged to a new record high in the third quarter of 2023, reaching 277 transactions for the first nine months of the year. This substantial increase is driven by a growing demand for luxury residences in the emirate, according to a report by global consultancy Knight Frank.
The emirate witnessed a remarkable 40.7% year-on-year increase in the volume of residential sales valued at more than $10 million during Q3 2023. The total worth of homes priced over $10 million in Dubai, which is considered the Middle East’s hub for commerce and tourism, exceeded $1.59 billion in the July-September period, according to the report.
Faisal Durrani, the partner and head of research for the Middle East and Africa at Knight Frank, noted, “Demand for luxury homes in Dubai remains strong, and the supply continues to lag behind demand.”
In the first half of the year, Dubai emerged as one of the world’s busiest markets for sales exceeding $10 million, surpassing other global cities like New York, Hong Kong, London, Los Angeles, and Singapore.
The average price per square foot for homes sold for over $10 million was Dh6,557 ($1,785.2) at the end of the September quarter, as indicated by Knight Frank’s analysis.
Demand for luxury homes in Dubai remains robust, attracting both local and international buyers. Key areas like Palm Jumeirah continue to witness consistent interest, accounting for a significant portion of sales in the over $10 million price range.
In the last quarter, the total value of sales over $10 million surpassed $825.2 million in Palm Jumeirah, followed by Emirates Hills ($189.6 million), Umm Suqeim 3 ($141.8 million), MBR City ($125.6 million), and Jumeirah Bay Island ($117.9 million).
Dubai’s prime neighborhoods, such as the Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island, have experienced consistent price growth over nine consecutive quarters.
The demand for luxury homes in Dubai continues to rise, driven by an increasing number of wealthy individuals. Global high-net-worth individuals are projected to invest $2.5 billion in Dubai’s property market in the current year, according to Knight Frank.
Approximately 22% of these high-net-worth individuals are willing to allocate between $5 million and $10 million for real estate purchases in the emirate, with 8% ready to invest more than $80 million.
Last year, Dubai recorded 219 home sales valued at over $10 million, with a total transaction value of $3.8 billion, positioning the emirate behind New York, Los Angeles, and London in terms of luxury home sales.
Publish Date: October 05, 2023