During the third quarter of 2023, luxury homes in Dubai priced at over $10 million achieved a total sales volume of $1.59 billion, according to an analysis conducted by Knight Frank. The top purchasers of these ultra-luxury properties in the emirate, valued at $10 million (Dh36.7 million) or more, are Chinese, Emirati, British, and Indian investors.
"Demand for high-end homes in Dubai remains robust, while the supply continues to lag behind the demand persistently. The total number of $10 million-plus home sales in Dubai for the first nine months of the year reached a record high of 277, with three months remaining in the year. This solidifies Dubai's position as the world's busiest market for $10 million-plus property sales during the first half of the year, surpassing New York (125), Hong Kong (109), and London (99)," noted Faisal Durrani, Partner and Head of Research, Middle East and Africa.
In the third quarter of 2023, the total sales volume for super-prime homes in Dubai, priced at over $10 million, reached $1.59 billion, according to an analysis conducted by Knight Frank. The primary buyers of these ultra-luxury properties in the emirate, with a value of $10 million (Dh36.7 million) or more, are Chinese, Emirati, British, and Indian investors.
"Demand for luxury homes in Dubai remains strong, while supply consistently falls short of demand. The total number of $10 million home sales in Dubai for the first nine months of the year has reached 277, setting a new record with three months remaining in the year. This reinforces Dubai's position as the world's most active market for $10 million-plus property sales in the first half of the year, surpassing New York (125), Hong Kong (109), and London (99)," said Faisal Durrani, Partner and Head of Research, Middle East and Africa.
Advertisement At the end of the third quarter, Knight Frank's analysis showed that the average transacted price for homes sold for more than $10 million was Dh6,557 per square foot (psf).
The demand for luxury homes in the city continues to grow, attracting both local and international buyers. Prime residential areas in the city are witnessing consistent interest, with The Palm Jumeirah being the primary focal point for super-prime home sales, accounting for 52.3% of total sales in the $10 million+ price bracket. Umm Suqeim, anchored by the Madinat Jumeirah Living development, came in third. The average transacted prices in this area are Dh15,700 per square foot, 62% higher than its closest competitor, Business Bay.
"The remarkable trend of price increases in this third market cycle has seen prices rise for nine consecutive quarters. Dubai's prime neighborhoods, including the Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island, have been and continue to be the standout performers in this cycle, with prime values currently 15.9% higher than this time last year," added Durrani.
Dubai's third freehold residential market cycle remains in its growth phase.
"Cash buyers are dominating the market, with a highly diverse buyer pool. Prime market inventory is still limited, and the demand for luxury beachfront homes, as seen in the recent sell-out of the initial tranche of villas on the Palm Jebel Ali, is expected to continue driving price growth until the supply can meet or exceed demand," stated Knight Frank.