Dubai is world's top market for $10m homes as sales hit $3.1bn in first half of year

Sales of units valued more than $10 million stood at 176 during the six month period, Knight Frank says

The Palm Jumeirah continued to dominate sales in the luxury segment in the first six months of 2023. Antonie Robertson / The National

Dubai’s luxury home sales, with a value of more than $10 million, crossed the $3.1 billion mark in the first half of 2023 amid higher demand for prime property in the emirate.

The total number of homes sold during the six-month period from January to June stood at 176, according to global property consultancy Knight Frank.

The rising volume of luxury home sales has helped to drive apartment and villa prices across the Emirate to 15 per cent and 46 per cent, respectively, during the period.

In the first six months, “the city has already achieved 79 per cent of the total number of $10 million homes sold in 2022”, said Faisal Durrani, partner and head of Middle East Research at Knight Frank.

“In addition, with average transacted prices continuing to hover at around Dh6,900 per square foot or about $1,800 per square foot, the emirate continues to offer relatively affordable access to luxury living.”

With 92 deals, Dubai also emerged as the busiest $10 million-plus market in the world during the first quarter of 2023, edging past Hong Kong (67) and New York (58), he said.

Demand for luxury property continues to rise in the UAE and Dubai has been ranked as the world’s fourth-most active market in the luxury residential segment, Knight Frank said in a report earlier this year.

Last year, the emirate recorded the sale of 219 homes priced above $10 million, with the total value of the transactions reaching $3.8 billion.

That ranked Dubai behind New York (244 sales), Los Angeles (225 sales) and London (223 sales).

Global high-net-worth individuals (HNWIs) plan to spend $2.5 billion on Dubai property this year, Knight Frank in another report.

The city's prime districts, including The 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 the second quarter, the latest report said.

The average sales price during the second quarter stood at $16.5 million for homes in the category.

“The demand for luxury properties in the resale market, offering immediate occupancy, remains robust, driven by the discerning preferences of Dubai residents seeking both utility and a sense of presence within the city,” said Andrew Cummings, partner and head of prime residential at Knight Frank.

“Our flagship report, Destination Dubai report substantiates this claim, revealing that an impressive 66 per cent of buyers intend to personally utilise the properties, further attesting to the significance of this trend.”

There is also a “notable surge in interest for opulent branded residences”, in the off-plan segment, Mr Cummings said.

Luxury homes are being sold for record prices in Dubai as demand continues to pick up for plush property in the emirate.

A Versailles-like mansion is being sold for Dh750 million ($204 million) in Emirates Hills, according to Luxhabitat Sotheby’s International Realty.

The property has more than 70,000 square feet of land space, with an additional 60,000 square feet of built-up space that includes a coral reef aquarium, two domes and 160 marble columns.

In May, a luxury mansion at Lanai Islands, in the Tilal Al Ghaf project, was sold for Dh200 million.