According to Knight Frank’s most recent analysis, 88 homes valued at above $10 million and totaling Dh6 billion were sold in Dubai during the first quarter.
According to Knight Frank’s analysis, the city’s most prestigious residential neighborhoods, such as Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island, continue to dominate the sale of luxury homes, with first-quarter average transacted prices for US$10 million homes in these sought-after areas reaching Dh8,800 per square foot. But, other parts of the city are also gaining prominence quite quickly.
Faisal Durrani, Partner – Head of Middle East Research said: “The $10 million plus homes market in Dubai continues to strengthen, with 88 sales being registered in Q1 alone. 2022 saw Dubai record 219 deals above this price point, positioning the city as the fourth busiest luxury homes market in the world. 2023 is shaping up to be another record year for this segment of the market.
“The depth of demand for homes at this price point from local and international UHNWI is helping to drive up prices in this exclusive segment of the market. Indeed, Q1 has seen average transacted prices for $10 million plus homes reach Dh7,235 per square foot, which represents a 16 per cent increase on 2022’s Dh6,250 per square foot.” Dubai
While the Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills, three of Dubai’s prime neighbourhoods, accounted for 64% of $10 million in home sales during the first quarter, other areas are also gaining prominence and are likely to be classified as “prime” if they continue to firmly establish themselves as upscale neighbourhoods, the Knight Frank study reveals. One such place is the Al Wasl-Dubai Canal corridor, where branded residential sales have helped it become a hotspot for UHNWI who are interested in purchasing the priciest properties in the emirate’s most coveted neighbourhoods.
Dubai’s premium residential market had price increases of 44% in 2022, making it the fastest-growing luxury market in the world. According to Knight Frank, Dubai will have the fastest-growing residential market for the second year in a row as prime residential prices are expected to increase by 13.5%.
The city is the 16th most “affordable luxury” market in the world, with $1 million buying 1,130 square feet in any of Dubai’s three upscale neighbourhoods. This effectively means that compared to cities like London, New York, or Singapore, $1 million can purchase three times as much luxury residential real estate.