219 homes were sold in Dubai in 2022, greatly breaking previous real estate market records, for an average price of almost $10 million. Prior to 2021, there were 93 such sales of homes costing $10 million or more, with an annual total of 20 units or less. In 2015, the total just went over 31, according to a new update from Knight Frank.
In reality, 2022 was the year that Dubai experienced a rush of real estate transactions worth more than Dh100 million, with the most expensive being the sale of a mansion on the Palm Jumeirah for just over Dh300 million. Single-deal multi-property deals that topped Dh600 million set new records as Dubai became the preferred place for foreign investors.
In 2022, 219 residences were sold in Dubai, shattering previous market records and selling for an average of nearly $10 million. Prior to 2021, 93 such sales of properties costing $10 million or more and 20 units or fewer year occurred. According to a recent report from Knight Frank, the total recently climbed over 31 in 2015.
In truth, 2022 saw a spike in real estate deals in Dubai that totaled more than Dh100 million; the most expensive of them was the sale of a home on the Palm Jumeirah for just over Dh300 million. Dubai became the favorite location for foreign investors, setting new records for single-deal multi-property acquisitions that exceeded Dh600 million.
A place for the privileged to play
The average price per square foot in the super-prime category was Dh3,50 as a result of the high demand. According to the Knight Frank survey, luxury properties in Dubai are still “affordable” even if the city’s average price per square foot is still between Dh1,000 and Dh1,200. real estate
According to Durrani, “The Palm Jumeirah remains the star performer of the city, with villa values jumping by 49.4% last year, supported by a lack of new waterfront villa developments in finished communities and the desire of the international elite to secure freestanding beachfront houses.” The fact that villa prices have increased by 96% since the start of the pandemic, but are still at Dh3,000 per square foot, clearly reflects the high demand for homes.
Other places profit
Villas in Mohammed Bin Rashid City (up 21.6%), Dubai Hills Estate (20.2%), and District One (19.5%) held their own despite the Palm attracting the majority of buyer attention. Desirable neighborhood apartments also did well, with those in Dubai Hills Estate increasing by 22.7%, those at the Palm (19.7%), and Downtown Dubai following (13.8 percent). The price for apartments at the later two locations is approximately Dh2,200 per square foot.
According to Knight Frank’s Andrew Cummings, “the buyer pool remains unusually diversified, with ex-pat residents and foreign high-net-worth individuals from Europe, India, Europe, Asia, the UK, and Eastern Europe still arriving in their droves.”
More super-prime loans are being given out
According to Andrew Cummings, Partner – Head of Prime Residential at Knight Frank, “We have also seen significant sales at newly handed over, or soon to handover, buildings like One Palm, Dorchester Residences, and Atlantis the Royal.” The outstanding architecture, first-rate amenities, and high-end finishing that is new to Dubai are what set these properties apart.