Dubai is closing in on becoming the world's most sought-after market for luxury homes, with high-net-worth buyers snapping up dozens of homes worth at least US$10 million last year.

The emirate registered 219 sales of prime residential properties worth US$10 million or more, the fourth highest in the world in 2022 behind New York, Los Angeles and London, according to global real estate consultancy Knight Frank.

The total value of high-end properties sold in Dubai's prime residential areas, including The Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, was estimated at US$3.8 billion.

New York took the top spot with 244 sales worth a total of US$4.4 billion, followed by Los Angeles with 225 sales worth US$4.3 billion and London with 223 sales worth US$4.3 billion.

Dubai is also now the fifth most active city for property sales worth US$25 million or more, with 26 transactions recorded last year, behind London with 43 transactions, New York (43), Los Angeles (39) and Hong Kong (28).

Faisal Durrani, partner in charge of Middle East research, said Dubai has taken its place among the historic 'hub cities' as one of the world's most popular markets for luxury properties.

Durrani said: "Dubai has arrived ...... an increasing concentration of wealth in the city, which has been driven by a variety of factors, from the government's decisive response to the pandemic to the introduction of a range of new residency visa options," said Durrani.

The fact that Dubai's luxury property market remains significantly undersupplied and more affordable than its global counterparts also adds to the city's overall appeal to big-ticket buyers.

"In Dubai's prime residential areas, US$1 million equates to about 1,130 square feet of space, about five times that of Hong Kong and three times that of London or Singapore," said Durrani.

"These factors have fuelled business and economic confidence, which in turn has helped to supercharge the demand for luxury homes."

Dubai saw the biggest jump in luxury property prices last year at 44.2 per cent, significantly higher than global peers such as Aspen (which came in second with 27.6 per cent growth), Riyadh (25 per cent), Tokyo (22.8 per cent) and Miami (21.6 per cent).