According to the most recent data from Knight Frank provided on Thursday, with 92 transactions during the first quarter of 2023, Dubai became the busiest $10 million and upscale market in the world as the demand for luxury real estate continues unabated.
The emirate narrowly beat out Hong Kong (67) and New York (58) in terms of real estate transactions of $10 million plus between January and March 2023.
The luxury home sales in Dubai valued at $10 million increased to 176 transactions in the first half of 2023, reaching $3.1 billion (Dh11.377 billion), according to the real estate consulting firm.
63% of all house sales in Q2 worth $10 million or more were in the wealthy Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island neighborhoods, which continue to dominate sales.
According to partner and director of Middle East research Faisal Durrani, 79% of all residences valued at $10 million that will be sold in the city in 2022 have already been sold.
According to Andrew Cummings, partner, and head of prime residential, the demand for opulent homes with immediate occupancy is still strong and is being driven by Dubai residents’ sophisticated tastes for convenience and a sense of presence in the city.
“There is a notable surge in interest for opulent branded residences, fuelled by the record-breaking sales and remarkable sell-out achievements witnessed by esteemed brands such as Six Senses, Baccarat, and Bvlgari,” said Cummings.
Millionaires on the front
Millionaires are moving into the emirate, attracted by the high standard of living, great return on investment, and safety factors, which are fueling demand.
The UAE will receive 4,500 millionaires this year, which is the second-highest number behind Australia, according to Henley & Partners’ most recent study.
The UAE exceeded its prediction of 4,000 high-net-worth individuals in 2022 and attracted 5,200, the biggest number globally.
Durrani added that the majority – 86 percent – of global HNWI cite parks as their number one consideration when looking at a residential investment in Dubai. ”Given the limited number of development sites in coastal communities, this may be a way to create more inland prime neighborhoods,” he said.
Prices still affordable
For all house sales worth $10 million or more during the second quarter, the average sales price was $16.5 million.
By the end of June 2023, prices for apartments and villas had risen by 15% and 46%, respectively, due to the strong demand.
The average transaction price continues to stay around Dh6,900 per square foot, thus pricing is still rather reasonable.