Dubai became the world's busiest $10 million+ market with 92 transactions in the first quarter of 2023 as demand for luxury homes continued unabated, according to new data released by Knight Frank on Thursday.
Dubai surpassed Hong Kong (67) and New York (58) in terms of $10 million plus property transactions between January and March 2023.
Dubai's $10 million luxury property sales jumped to 176 in the first half of 2023, exceeding $3.1 billion (Dh11.377 billion), the real estate consultancy said.
Sales in prime neighborhoods such as Palm Jumeirah, Emirates Hills and Jumeirah Bay Island continued to dominate, accounting for 63 percent of all $10 million-plus home sales in the second quarter.
Faisal Durrani, Partner and Head of Middle East Research, revealed that the city has achieved 79% of total $10 million home sales for 2022.
Andrew Cummings, partner and head of premium residences, said demand for luxury homes offering immediate occupancy remains strong, driven by Dubai residents' discerning preferences for both practicality and urban presence.
"There has been a clear surge in interest in luxury branded residences, driven by record sales and significant sell-outs of prestige brands such as Six Senses, Baccarat and Bvlgari," Cummings said.
Millionaires on the Front Lines
Demand is driven by the influx of millionaires into the UAE, attracted by strong investment returns, high quality of life and security aspects.
According to a recent report by Henley & Partners, 4,500 millionaires will move to the UAE this year, the second highest number after Australia.
In 2022, the UAE attracted 5,200 high net worth individuals, surpassing its forecast of 4,000 and the highest in the world.
Durrani added that the majority - 86% - of global HNWIs cite parks as their top consideration for residential investment in Dubai". Given the limited number of development sites in coastal communities, this could be a way to create more prime inland communities," he said.
The average sales price for all home sales over $10 million was $16.5 million in the second quarter.
Due to strong demand, condo and villa prices increased by 15% and 46%, respectively, through the end of June 2023.
However, prices remain relatively affordable, with the average transaction price continuing to hover around Dhs6,900 per square foot.
