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Luxury home sales in Dubai skyrocketed to US$ 7.6bn in 2023

Knight Frank reports a staggering 92.4% increase in $10 million+ home sales in Dubai in 2023, reaching 431 sales

Aerial view of Palm Jumeirah

Dubai’s luxury real estate market caters to the world’s wealthiest individuals, offering an extraordinary level of opulence, conveniences, unmatched connectivity, and excellent quality of life. Hence, it’s not surprising that a recently published report by the global property consultancy firm Knight Frank revealed a staggering 92.4% increase in the number of homes sold for $10 million or more in Dubai in 2023, reaching an impressive 431 sales—surpassing the previous year’s record of 224.

The total value of sales above this price point grew by 91% last year to US$ 7.6 billion, 28% of which was achieved in Q4 alone.

Knight Frank’s analysis also revealed that during the first nine months of 2023, Dubai had already sold more than twice as many homes priced over US$ 10 million than its nearest competitor – New York, which recorded 159 deals, against 323 in Dubai. Similarly, Dubai’s US$ 10 million+ residential property market registered sales totalling US$ 5.8 billion between Q1-Q3 2023, nearly double the level of second-placed London (US$ 3.2 billion).

Faisal Durrani, Partner – Head of Research, MENA, mentions, “Dubai has doubled down on its position as the world’s most active US$10 million-plus homes market. The depth of demand from international buyers for Dubai’s most luxurious homes is also reflected in the fact that city-wide listings above US$ 10 million fell by 8.9% last year. Developers are still scrambling to respond to the emirate’s meteoric rise as one of, if not the most sought-after luxury-second home markets in the world.”

He further adds, “The voracity of international ultra-high-net-worth demand has also super-charged the US$ 25 million plus or super-prime market. The number of homes trading at this uber-swanky end of the market doubled in 2023 to 56 deals worth US$ 2.3 billion.”

Faisal Durrani, Partner – Head of Research, MENA

Bang for your buck

Dubai has experienced remarkable growth since the pandemic, driven by its reputation as a safe haven and its popularity as a luxury home destination. These factors have greatly boosted business confidence. Therefore, affluent individuals from around the globe have been increasingly setting their sights on Dubai’s exquisite homes, primarily located in the city’s most coveted neighbourhoods.

According to Knight Frank, the Palm Jumeirah remains at the epicentre for luxury home sales in Dubai. Dubai’s first iconic palm tree-shaped island accounted for 38.5% of homes sold for more than US$ 10 million during 2023 (or 166 deals), and 39.2% (or 22 deals) of sales of more than US$ 25 million.

Will McKintosh, Regional Partner and Head of Residential, MENA, says, “The Palm Jumeirah’s appeal is now universal, and the island has well and truly cemented its status as one of the most desirable addresses globally. In line with the broader trend we are seeing in Dubai of genuine end-users and second-home buyers dominating transactional activity, inventory levels are slipping. The Palm Jumeirah, for instance, had 9.5% fewer homes for sale last year than in 2022, reflecting the buy-to-stay and buy-to-hold attitude of the bulk of purchasers. The island’s location at the heart of New Dubai and recently achieved prestigious Blue Flag status only adds to its appeal amongst the world’s elite.”

Will McKintosh – Regional Partner and Head of Residential, MENA

Following closely behind Palm Jumeirah for the total number of homes sold for more than US$ 10 million in 2023 is Jumeirah Bay Island (47 sales) and the recently launched Palm Jebel Ali (36 transactions).

The Palm Jebel Ali’s record sell-out of the first tranche of homes in September last year underscores the depth of demand for luxury beach-front homes in Dubai. The instant success of the Palm Jebel Ali highlights the local and international appetite to secure a beach-front home on Dubai’s next palm island, which is set against a broader backdrop of a shortage of sea-side homes, according to Knight Frank.