In the first three months of the year, Dubai saw a surge in luxury real estate sales. A total of 105 homes sold that were over $10 million, marking a 19% increase compared to last year. The total value of these sales amounted to $1.73 billion, up by 6% from the same period in 2023. These figures are according to the most recent analysis from Knight Frank.
DUBAI'S LEADING THE GLOBAL PRIME LUXURY REAL ESTATE MARKET
Dubai is now the top global market for homes priced over $10 million. Last year, the city saw 431 of these high-priced home sales, surpassing London and New York.
STRONG INVESTOR INTEREST
Faisal Durrani, a Partner at Knight Frank, talked about the strong activity in Dubai's luxury market. He mentioned the consistent interest from international high-net-worth people seeing the city's most exclusive properties.
DECLINE IN INVENTORY
Luxury home listings in Dubai fell by 59% in the past year, now standing at only 864. This drop highlights that demand was greater than the available supply. In doing so, this conveys the strong appeal and demand for luxury properties in Dubai.
KEY AREAS IN DUBAI FOR LUXURY REAL ESTATE SALES
The Palm Jumeirah had the highest luxury home total sales value in Dubai, making up 36.3% of the total sales value in Q1. Jumeirah Bay Island and Dubai Hills Estate were also notable areas for total sales value.
EMERGING LUXURY MARKETS IN DUBAI
Luxury home buyers are looking beyond famous areas like Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills. Other markets are starting to catch their attention. Dubai Hills Estate is especially rising in popularity. This is because of its amenities, green spaces, and easy access to key areas.
GROWTH AND AFFORDABILITY
Dubai's luxury real estate market has seen strong growth. But, according to Knight Frank’s 2024 Wealth Report, the Emirates market is still cheaper than many other cities worldwide. For $1 million, buyers can get about 980 square feet of prime residential space in Dubai. So, this offers great value for investors. This is more than half the price of prime residential real estate per square foot in Paris, Shanghai, and Sydney as examples. Yet, Dubai still ranks as the 13th most expensive city in the world for prime residential real estate.
DUBAI’S LUXURY REAL ESTATE MARKET IS AS ATTRACTIVE AS EVER
Dubai's luxury real estate market continues to attract investors from around the world. The emirate offers strong growth, limited inventory, and relative affordability. So, it remains a top destination for luxury property investment.
