Dubai records highest luxury property transactions in the world, surpassing Hong Kong, New York

Dubai emerged as the busiest $10-million-plus market in the world with 92 deals during the first quarter of 2023 as luxury property market demand continues unabated, according to Knight Frank’s latest data released on Thursday.

The emirate edged past Hong Kong (67) and New York (58) in terms of $10-million-plus property deals in the January-March 2023 period.

The real estate consultancy said Dubai luxury property sales of $10 million jumped to 176 during the first half of 2023, surpassing $3.1 billion (Dh11.377 billion).

Prime neighbourhoods of Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island continue to dominate sales, accounting for 63 per cent of all $10-million-plus home sales in Q2.

Faisal Durrani, partner and head of Middle East research, revealed that the city has already achieved 79 per cent of the total number of $10-million homes sold in 2022.

Andrew Cummings, partner and head of prime residential, said the demand for luxury properties offering immediate occupancy remains robust, driven by the discerning preferences of Dubai residents seeking both utility and a sense of presence within the city.

“There is a notable surge in interest for opulent branded residences, fuelled by the record-breaking sales and remarkable sell-out achievements witnessed by esteemed brands such as Six Senses, Baccarat, and Bvlgari,” said Cummings.

Millionaires on the front

The demand is driven by the inflow of millionaires into the emirate, attracted by strong return on investment, high quality of life, and safety aspects.

According to Henley & Partners’ latest report, 4,500 millionaires will relocate to the UAE this year, the second highest after Australia.

In 2022, the UAE attracted 5,200 high-net-worth individuals, surpassing its forecast of 4,000, the highest globally.

Durrani added that the majority – 86 per cent – of global HNWI cite parks as their number one consideration when looking at a residential investment in Dubai.” Given the limited number of development sites in coastal communities, this may be a way to create more inland prime neighbourhoods,” he said.

Prices still affordable

The average sales price during Q2 stood at $16.5 million for all $10 million-plus home sales.

As a result of high demand, apartment and villa prices have increased 15 per cent and 46 per cent, respectively, as of the end of June 2023.

However, prices are still relatively affordable with average transacted prices continuing to hover at around Dh6,900 per square foot.

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