According to Knight Frank, a global property consultant, there were 105 properties sold in Dubai in the first three months of this year valued at more than $10 million, marking a 19% increase from Q1 2023.
Faisal Durrani, Partner – Head of Research, MENA, explained, “The level of deal activity in Dubai continues to strengthen, particularly at the top end of the market, where there’s a constant influx of international high-net-worth individuals seeking the city’s most expensive homes.
“The significant interest from wealthy individuals worldwide in Dubai is evident in the rapid decline in the volume of $10 million+ homes for sale, which has dropped by 59 percent across the city over the past 12 months to just 864 homes.”
Six percent more than in Q1 2023, the total value of luxury homes sold in Q1 was $1.73 billion. This highlights Dubai’s status as the busiest market for homes priced at $10 million or more globally.
According to Knight Frank, Dubai saw 431 home sales of over $10 million in the previous year, nearly eighty percent more than the next closest competitor, London (240). In 2023, New York (211) rounded out the top three most active luxury home markets worldwide.
With transactions totaling $628 million, Palm Jumeirah led the luxury home market in Q1, representing 36.3 percent of all sales. Jumeirah Bay Island (11.1%) and Dubai Hills Estate (7%) followed in second and third place, respectively.
Regarding the total number of luxury homes sold, Palm Jumeirah (39) took the lead, but Business Bay (seven) and Palm Jebel Ali (ten) had a higher number of sales of upscale properties compared to Jumeirah Bay Island or Dubai Hills Estate.
Beyond the prominent areas like Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills, other markets such as Dubai Hills Estate are gaining momentum among luxury real estate buyers, according to Knight Frank.
Will McKintosh, Regional Partner and Head of Prime Residential, MENA, stated, “Dubai Hills Estate has quietly been rising as one of Dubai’s most sought-after markets for domestic and luxury home buyers alike.
“The proximity to both Downtown and New Dubai, access to an international school, excellent neighborhood facilities and amenities, and abundant green space are quickly making Dubai Hills Estate one of Dubai’s most desirable neighborhoods. Prices have risen by almost 11 percent in the last 12 months, while the number of homes available for sale has dropped by 75 percent to just over 1,000 units this past March.”
Knight Frank’s prior research for its Destination Dubai 2023 report revealed that global high net worth individuals prioritize access to parks and green spaces when considering an investment in Dubai.
Prime Resurgence
Knight Frank reports a significant upsurge in Dubai’s premium residential market performance, including Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills.
Durrani concluded, “Following an extraordinary 44.4 percent increase during 2022, Dubai’s prime residential market has grown by 26.3 percent over the last 12 months, making it one of, if not the fastest-growing prime residential market globally. Despite these remarkable growth rates, Dubai’s luxury homes market remains one of the most affordable globally.
“Indeed, $1 million secures around 980 square feet of prime residential space in Dubai, compared to just 366 square feet in New York, 355 square feet in London, or 172 square feet in Monaco.”
