Staff Writer: Khaleej Times
October 24, 2023
During the third quarter of 2023, super-prime homes in Dubai, priced at over $10 million, garnered a total sales volume of $1.59 billion, as per an analysis conducted by Knight Frank. According to the property consultant, Chinese, Emirati, British, and Indian investors are the top buyers of uber-luxury properties in the emirate with a value of $10 million (Dh36.7 million) and more.
“Demand for luxury homes in Dubai remains resilient, and supply continues to lag demand stubbornly. The total number of $10 million home sales in Dubai for the first nine months of the year has hit 277, a record high with three months of the year still left to run. This builds on Dubai’s emergence as the world’s busiest $10 million-plus sales market during first-half, ranking ahead of New York (125), Hong Kong (109), and London (99),” said Faisal Durrani, partner and head of research, Middle East and Africa.
The average transacted price for homes that were sold for more than $10 million stood at Dh6,557 per square foot (psf) at the end of Q3, according to Knight Frank’s analysis.
City luxury home demand continues to strengthen, attracting both local and international purchasers. The city’s prime residential areas are witnessing consistent interest, with The Palm Jumeirah remaining the key focal point for super-prime home sales, accounting for 52.3 percent of total sales in this exclusive US10 million+ price bracket.
Umm Suqeim came third, which is anchored by the Madinat Jumeirah Living development. Average transacted prices here stand at Dh15,700 per square foot, 62 percent higher than its nearest competitor, Business Bay.
“The extraordinary run of price rises in this third market cycle has seen prices escalating for nine consecutive quarters. Dubai’s prime neighborhoods of the Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island have been and continue to be the real stars of this cycle, leaving prime values 15.9 percent higher than this time last year,” added Durrani.
Dubai’s third freehold residential market cycle remains firmly in its growth phase.
“Cash purchasers dominate activity, with the buyer pool still being exceptionally diverse. Stock in the prime markets is still restricted, and demand for luxury beachfront homes, as evidenced by the recent sell-out of the initial tranche of villas on the Palm Jebel Ali, is likely to continue sustaining price growth until such time that supply outstrips demand,” Knight Frank said.