City is now fourth busiest market for luxury homes in the world
According to the latest analysis conducted by global property consultant Knight Frank, Dubai’s residential property sales exceeding $10 million amounted to 88, contributing to a total of Dh6 billion in the first quarter.
According to Knight Frank’s analysis, the Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island are still the top-performing luxury residential areas in Dubai, with average transacted prices for $10 million homes in these sought-after locations reaching Dh8,800 per square foot in the first quarter. Meanwhile, other areas of the city are also rapidly gaining prime status.
Faisal Durrani, Partner – Head of Middle East Research said: “The $10 million plus homes market in Dubai continues to strengthen, with 88 sales being registered in Q1 alone. 2022 saw Dubai record 219 deals above this price point, positioning the city as the fourth busiest luxury homes market in the world. 2023 is shaping up to be another record year for this segment of the market.
The strong demand for homes in this price range from both local and international ultra high net worth individuals (UHNWIs) is contributing to the rising prices in this exclusive market segment. In fact, the first quarter has witnessed an average transacted price of Dh7,235 per square foot for $10 million plus homes, which reflects a 16 percent surge from last year’s Dh6,250 per square foot.
While Dubai’s prime neighbourhoods of the Palm Jumeirah, Jumeirah Bay Island and Emirates Hills accounted for 64 per cent of $10 million home sales during Q1, other areas are also growing in prominence and are likely to be classed as ‘prime’ if they continue to entrench themselves as high-end neighbourhoods, the Knight Frank study shows. The Al Wasl-Dubai Canal corridor is one such area, with branded residential sales contributing to its emergence as a hotspot for UHNWI who are focused on securing the most expensive homes in the emirate’s most desirable neighbourhoods.