‘Developers are still scrambling to respond to emirate’s meteoric rise as one of, if not the most, sought-after luxury-second home markets in the world’
The sale of uber-luxury homes with a price tag of $25 million (Dh92 million) and above doubled to 56 last year, as fewer homes were available for sale than in 2022.
According to data released by Knight Frank, total deals of properties with a price tag of $25 million-plus reached $2.3 billion (Dh8.4 billion) last year as demand stays robust for the ultra-luxury property segment.
The total value of sales above $10m price point grew by 91 per cent to $7.6 billion last year, 28 per cent of which was achieved in the fourth quarter alone.
“Dubai has doubled down on its position as the world’s most active $10 million plus homes market. The depth of demand from international buyers for Dubai’s most luxurious homes is also reflected in the fact that city-wide listings above $10 million fell by 8.9 per cent last year. Developers are still scrambling to respond to the emirate’s meteoric rise as one of, if not the most, sought-after luxury-second home markets in the world,” said Faisal Durrani, Partner – Head of Research, Mena.
Knight Frank’s analysis also reveals that during the first nine months of 2023, Dubai had already sold more than twice as many homes priced over $10 million than its nearest competitor – New York, which recorded 159 deals, against 323 in Dubai.
Similarly, Dubai’s $10 million+ residential property market registered sales totalling $5.8 billion between Q1 and Q3 2023, nearly double the level of second-placed London ($3.2 billion).
The Palm Jumeirah remained at the epicentre for luxury home sales in Dubai.
The iconic palm tree-shaped island accounted for 38.5 per cent of homes sold for more than $10 million during 2023 (or 166 deals), and 39.2 per cent (or 22 deals) of sales of more than $ 25 million.
“The Palm Jumeirah’s appeal is now universal, and the island has well and truly cemented its status as one of the most desirable addresses globally. And in line with the broader trend we are seeing in Dubai of genuine end-users and second-home buyers dominating transactional activity, inventory levels are slipping,” said Will McKintosh, regional partner and head of residential for Mena at Knight Frank.
The Palm Jumeirah, for instance, had 9.5 per cent less homes for sale last year than in 2022, reflecting the buy-to-stay and buy-to-hold attitude of the bulk of purchasers. The island’s location at the heart of New Dubai and recently achieved prestigious Blue Flag status only adds to its appeal amongst the world’s elite looking for instant access to the ‘Dubai life’.
Following closely behind the Palm Jumeirah for the total number of homes sold for more than $10 million in 2023 is Jumeirah Bay Island (47 sales) and the recently launched Palm Jebel Ali (36 transactions).
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