In the first three months of this year, 105 properties worth more than $10 million were sold in Dubai, up 19% from Q1 2023, according to global real estate consultant Knight Frank.
Faisal Durrani, Partner – Head of Research, MENA, explained, “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 percent across the city over the last 12 months to just 864 homes.”
The total value of luxury homes sold in Q1 was $1.73 billion, which is 6% more than in Q1 2023. This builds on Dubai’s emergence as the world’s busiest market for properties costing $10 million or more.
Knight Frank reports that in the previous year, Dubai had 431 home sales of over $10 million, nearly eighty percent more than the next closest competitor, London (240). The list of the top three most active luxury home markets globally in 2023 was completed by New York (ranked 211).
Palm Jumeirah led the luxury home market in Q1 with $628 million in transactions, or 36.3 percent of all sales. Dubai Hills Estate (7%), and Jumeirah Bay Island (11.1%) came in second and third, respectively.
Palm Jumeirah ranked first overall in terms of sold luxury properties with 39, but Business Bay (seven) and Palm Jebel Ali (ten) sold more upscale properties than Jumeirah Bay Island or Dubai Hills Estate.
According to Knight Frank, premium real estate buyers are rapidly gravitating toward other markets besides the eye-catching Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills, such as Dubai Hills Estate.
Will McKintosh, Regional Partner and Head of Prime Residential, MENA, said, “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.
“The relative proximity to both Downtown and New Dubai, combined with access to an international school, excellent neighborhood facilities and amenities, and, of course, its abundance of green space, is quickly making Dubai Hills Estate one of Dubai’s most desirable neighborhoods. Prices have unsurprisingly responded to the growing demand to live here and have risen by almost 11 percent in the last 12 months, while the number of homes available for sale has fallen by 75 percent to just over 1,000 units this past March.”
Prime Resurgence
According to Knight Frank, the Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills premium residential markets in Dubai have seen a noticeable improvement in performance.
Durrani concluded, “After growing by 16.3 percent in 2023, following an extraordinary 44.4 percent increase during 2022, Dubai’s prime residential market has grown by 26.3 percent over the last 12 months, easily making it one of, if not the fastest growing prime residential market globally. While these startling growth rates are phenomenal, it does not take away from the fact that Dubai’s luxury homes market remains one of the most affordable in the world.
“Indeed, $1 million secures some 980 square feet of prime residential space in Dubai, compared to just 366 square feet in New York, 355 square feet in London, or 172 square feet in Monaco.”
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