According to the most recent analysis conducted by international real estate consultant Knight Frank, Dubai saw 88 home sales over $10 million that totaled Dh6 billion during the first quarter.
The analysis by Knight Frank also reveals that the city’s premier residential neighborhoods, including the Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island, continue to dominate luxury home sales, with first-quarter average transacted prices for US10 million homes in these coveted areas reaching Dh8,800 per square foot. But, other areas of the city are quickly gaining prime status as well.
“The $10 million plus properties market in Dubai continues to strengthen, with 88 transactions being registered in Q1 alone,” stated Faisal Durrani, Partner and Head of Middle East Research. Dubai became the fourth busiest market for luxury properties in the world in 2022 after recording 219 deals exceeding this threshold. 2023 is expected to be yet another record year for this market sector.
While Dubai’s prime neighbourhoods of the Palm Jumeirah, Jumeirah Bay Island and Emirates Hills accounted for 64 per cent of $10 million home sales during Q1, other areas are also growing in prominence and are likely to be classed as ‘prime’ if they continue to entrench themselves as high-end neighbourhoods, the Knight Frank study shows. The Al Wasl-Dubai Canal corridor is one such area, with branded residential sales contributing to its emergence as a hotspot for UHNWI who are focused on securing the most expensive homes in the emirate’s most desirable neighbourhoods.
Dubai’s premium residential market had price increases of 44% in 2022, making it the fastest-growing luxury market in the world. Knight Frank forecasts that prime residential values in Dubai will rise by 13.5 per cent, positioning the city as the fastest growing residential market for the second year running.
However, with $1 million securing 1,130 square feet in any of Dubai’s three prime neighbourhoods, the city is the 16th most “affordable luxury” market in the world. Effectively, this means $1 million buys three-times more prime residential space than cities like London, New York, or Singapore.