Dubai's Luxury Market Surges ($1.7b), Led By Palm Jumeirah & Jumeriah Bay Island - Smart Zones® Luxury Properties

Dubai’s Luxury Market Surges ($1.7b), Led By Palm Jumeirah & Jumeriah Bay Island

A recent report by Knight Frank reveals a significant surge in Dubai’s luxury real estate market, particularly for properties exceeding $10 million. During the first quarter of 2024, sales in this segment reached $1.7 billion, reflecting a 19% increase compared to the same period in 2023. This growth is attributed to a continuous influx of international high-net-worth individuals seeking opulent residences in Dubai.

Dubai has now become the global leader in the $10 million+ property market. In 2023, Knight Frank recorded a staggering 431 sales in this price bracket, exceeding London (240 sales) by nearly 80% and New York (211 sales) by a significant margin. This dominance is further evidenced by the rapid decline in available luxury properties. The report indicates a 59% decrease in the number of $10 million+ homes for sale within the past year, leaving only 864 units currently available.

The report also highlights the specific areas attracting the most interest within Dubai’s luxury market. Palm Jumeirah remains the most sought-after location, with sales reaching $628 million in the first quarter. Jumeirah Bay Island and Dubai Hills Estate followed closely, accounting for 11.1% and 7% of sales volume, respectively. However, the report identifies emerging neighborhoods gaining traction. Palm Jebel Ali and Business Bay witnessed a notable rise in high-end property sales, surpassing Jumeirah Bay Island and Dubai Hills Estate in terms of unit sales. This suggests a potential shift in buyer preferences towards these developing areas.

“Dubai Hills Estate has steadily climbed the ranks, not just among domestic buyers but increasingly attracting luxury homebuyers as well,” commented Will McKintosh, Regional Partner and Head of Prime Residential, MENA at Knight Frank. Factors such as proximity to green spaces and convenient access to Downtown and New Dubai are driving interest in these alternative markets. Prices in these areas have unsurprisingly responded to this growing demand, with a rise of nearly 11% in the past year.

Dubai’s prime residential market, encompassing established locations like Palm Jumeirah and Jumeirah Bay Island alongside emerging areas, has experienced exceptional growth. Over the past year, prime residential prices have surged by 26.3%, solidifying Dubai as one of the fastest-growing markets globally in this segment.

While these growth rates are impressive, Dubai’s luxury real estate market remains relatively affordable compared to other global destinations. Notably, $1 million can secure approximately 980 square feet of prime residential space in Dubai, compared to significantly smaller areas offered for the same price in New York, London, and Monaco.


Publish 16 Apr 2024


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