In 2023, Dubai's prime residential market is expected to grow by 13.5%, the highest growth rate in the world." In its latest report, Knight Frank said, "This growth is supported by a clear imbalance between supply and demand and a positive economic backdrop.

However, despite a continued boom in sales and a sustained rise in values across all sectors, residential unit prices in Dubai are still 15 per cent below their 2014 peak.

Residential market values in Dubai rose by 5.6 per cent in the first quarter, the ninth consecutive quarter of growth, driven by a surge in buyer demand. This growth was particularly driven by strong demand for luxury second homes and the city's emergence as a global hub for luxury goods, according to data released by the real estate consultancy.

Sales of branded residences, in particular, have seen a sharp rise since the start of the pandemic, driven by demand from ultra-high net worth individuals. Developments such as the Bakara Apartments in downtown Dubai have achieved record prices, highlighting the growing popularity of branded residences in the city.

PNC Menon, founder and chairman of premium property developer Sobha Group, said: "Dubai has cemented its position as one of the world's most important markets in the luxury residential sector following a series of government-initiated reforms that benefit investors and residents alike. Over the past few months, a steady stream of high net worth buyers and investors have arrived from overseas to establish homes in Dubai, attracted by the city's myriad of attractions and advantages, including its image as the cleanest, safest and most residential-friendly destination in the region."

Menon, who recently launched its first iconic residential development, The S tower, said: "Going forward, demand for luxury properties offering an elegant living experience in a city of choice for the super rich and famous will continue to rise."

Faisal Durrani, Partner - Head of Middle East Research at Knight Frank, despite the current strong rise, prices are still 15% behind the 2014 peak." Flats are recovering more slowly, still lagging behind the last market peak of 18 per cent seven years ago. Villas, on the other hand, have matched their 2014 peak and remain highly sought after, particularly in the upper end of the market, where prices are now 15 per cent higher than in the first quarter of 2022, with even more significant growth in prime neighbourhoods."

Knight Frank reports that prices in Dubai Hills and Emirates Hills, for example, have risen sharply as domestic buyers' demand for larger homes fuels demand, particularly in more affordable inland communities. Flat prices in Dubai Hills have risen by 23 per cent in the past 12 months, making it one of the city's biggest gaining communities.

The value of Dubai's residential market rose by 5.6 per cent in the first quarter, the ninth consecutive quarter of growth, driven by a surge in buyer demand. This growth was particularly driven by strong demand for luxury second homes and the city's emergence as a global hub for luxury goods, according to data released by the real estate consultancy.

Sales of branded residences, in particular, have seen a sharp rise since the start of the pandemic, driven by demand from ultra-high net worth individuals. Developments such as the Bakara Apartments in downtown Dubai have achieved record prices, highlighting the growing popularity of branded residences in the city.

PNC Menon, founder and chairman of premium property developer Sobha Group, said: "Dubai has cemented its position as one of the world's most important markets in the luxury residential sector following a series of government-initiated reforms that benefit investors and residents alike. Over the past few months, a steady stream of high net worth buyers and investors have arrived from overseas to establish homes in Dubai, attracted by the city's myriad of attractions and advantages, including its image as the cleanest, safest and most residential-friendly destination in the region."

Menon, who recently launched its first iconic residential development, The S tower, said: "Going forward, demand for luxury properties offering an elegant living experience in a city of choice for the super rich and famous will continue to rise."

Faisal Durrani, Partner - Head of Middle East Research at Knight Frank, despite the current strong rise, prices are still 15% behind the 2014 peak." Flats are recovering more slowly, still lagging behind the last market peak of 18 per cent seven years ago. Villas, on the other hand, have matched their 2014 peak and remain highly sought after, particularly in the upper end of the market, where prices are now 15 per cent higher than in the first quarter of 2022, with even more significant growth in prime neighbourhoods."

Knight Frank reports that prices in Dubai Hills and Emirates Hills, for example, have risen sharply as domestic buyers' demand for larger homes fuels demand, particularly in more affordable inland communities. Flat prices in Dubai Hills have risen by 23 per cent in the past 12 months, making it one of the city's biggest gaining communities.

"Continued strong demand for luxury homes from the international elite has contributed significantly to a 44% increase in the average price of villas across Dubai since January 2020. This level of growth brings villa prices to their last market peak in 2014 and demonstrates Dubai's rise as a leading global luxury hub," said Cummings.