Global property counsel Knight Frank’s research said 105 homes priced beyond $10 million were sold in Dubai during Q1, marking a 19% increase compared to last year.
Luxury Home Sales Surge in Dubai
The total weight of luxury homes dealt with during Q1 amounted to $1.73 billion, a 6% rise from Q1 2023. This evolution further solidifies Dubai’s position as the world’s busiest home market for $10 million or more.
In 2023, Knight Frank conveyed that Dubai registered 431 home sales exceeding $10 million, nearly 80% more elevated than London, the next highest competitor with 240 sales. New York completed the top three most active luxury home markets with 211 sales.
Factors Driving Luxury Home Demand
Faisal Durrani, Partner – Head of Research, Mena, underlined the strengthening deal movement in Dubai, specifically in the top-end market, fueled by a steady influx of multinational high-net-worth individuals pursuing the city’s most expensive properties.
He noted, “The intense interest of the global wealthy in Dubai is evident in the significant reduction in the volume of $10 million+ homes for sale, which has plummeted by 59% across the city over the past 12 months to just 864 homes.“
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Dominant Luxury Home Markets in Dubai
Knight Frank data displayed that Palm Jumeirah conquered the luxury homes market during Q1, registering sales worth $628 million, accounting for 36.3% of total sales by significance. Dubai Hills Estate and Jumeirah Bay Island heeded in 2nd and 3rd position, respectively.
While Palm Jumeirah led the total number of luxury homes marketed (39), Palm Jebel Ali and Business Bay recorded more high-end home deals than Dubai Hills Estate or Jumeirah Bay Island.
Knight Frank highlighted emerging markets such as Dubai Hills Estate, gaining traction among luxury home buyers due to its proximity to downtown and New Dubai, access to international schools, excellent amenities, and green spaces.
Affordability and Growth in Dubai’s Prime Residential Market
Will McKintosh, Regional Partner and Head of Prime Residential, Mena, highlighted the growing desirability of Dubai Hills Estate, attributing it to elements like proximity to essential areas and quality amenities. He noted a nearly 11% price increase over the past 12 months and a significant reduction in available homes for sale.
Knight Frank’s Destination Dubai 2023 news found that entrance to parks and green space ranks as the most important concern among global high-net-worth individuals when assessing investment in Dubai.
Dubai’s premium residential market, including Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island, has seen excellent performance, with a 26.3% boost over the last 12 months, making it one of the fastest-growing prime residential markets globally.
Despite these impressive growth rates, Durrani accentuated that Dubai’s luxury homes market remains one of the most affordable globally. He remarked that $1 million in Dubai guarantees significantly more prime residential rooms compared to cities like New York, London, or Monaco.
