A total of 105 homes priced in excess of $10 million were sold in Dubai during the first three months of the year, up 19% over last year, according to the latest analysis from global property consultant, Knight Frank.
The total value of luxury homes sold during Q1 stands at $1.73 billion, which is up 6% on Q1 2023 and builds on Dubai’s emergence as the world’s busiest $10 million+ homes market.
Last year, Knight Frank said Dubai recorded 431 home sales above $10 million, nearly 80% higher than the next nearest contender – London (240). New York (211) rounded off the top three most active luxury homes markets in the world in 2023.
Faisal Durrani, Partner – Head of Research, Mena, said: "The level of deal activity in Dubai continues to strengthen, particularly at the top end of the market, where the near constant stream of international high-net-worth-individuals vying for the city’s most expensive homes persists."
"The laser-like focus of the global wealthy on Dubai is best reflected in the rapid deterioration in the volume of $10 million+ homes for sale, which has fallen by 59% across the city over the last 12-months to just 864 homes," he added.
According to Knight Frank, the Palm Jumeirah registered deals worth $628 million, and dominated the luxury homes market during Q1, accounting for 36.3% of sales by total value. Jumeirah Bay Island (11.1%) and Dubai Hills Estate (7%) followed in second and third place, respectively.
While the Palm Jumeirah (39) also led the pack in terms of the total number of luxury homes sold, the Palm Jebel Ali (10) and Business Bay (7) registered more high-end home sales than Jumeirah Bay Island, or Dubai Hills Estate, it stated.
Knight Frank pointed out that away from the headline grabbing Palm Jumeirah, Jumeirah Bay Island and Emirates Hills, several other markets are fast rising in prominence amongst luxury home buyers, with Dubai Hills Estate, for instance, standing out as a market to watch.
"Dubai Hills Estate has quietly for some time been rising up the ranks as not only one of Dubai’s most sought-after markets for domestic buyers, but now luxury home buyers are increasingly active here too," noted Will McKintosh, Regional Partner and Head of Prime Residential, Mena.
"The relative proximity to both Downtown and New Dubai, combined with access to international school, excellent neighbourhood facilities and amenities and of course its abundance of green space is quickly making Dubai Hills Estate one of Dubai’s most desirable neighbourhoods. Prices have unsurprisingly responded to the growing demand to live here and have risen by almost 11% in the last 12-months, while the number of homes available for sale has fallen by 75% to just over 1,000 units this past March," he added.
Knight Frank has previously found in its Destination Dubai 2023 report that access to parks and green space ranks as the most important consideration amongst global HNWI when considering an investment in the emirate.
Dubai’s prime residential market, which includes the Palm Jumeirah, Jumeirah Bay Island and Emirates Hills, has experienced a surge in performance as well.
"After growing by 16.3% in 2023, following an extraordinary 44.4% increase during 2022, Dubai’s prime residential market has grown by 26.3% over the last 12-months, easily making it one of, if not the fastest growing prime residential market globally," stated Durrani.
"While these startling growth rates are phenomenal, it doesn’t take away from the face that Dubai’s luxury homes market still remains one of the most affordable in the world," said the senior official.
"Indeed, $1 million secures some 980 square feet of prime residential space in Dubai, compared to just 366 sq ft in New York, 355 sq ft in London, or 172 sq ft in Monaco," he added.-TradeArabia News Service
