Dubai is rapidly establishing itself as the premier destination for high-end residential real estate, as wealthy purchasers continue to buy numerous multimillion-dollar homes costing no less than $10 million in the past year. This has resulted in a surge in demand for luxury properties, making Dubai one of the most coveted markets in the world for upscale real estate.
In 2022, Dubai recorded 219 transactions involving premium residential real estate valued at $10 million or higher, placing it fourth in the world behind New York, Los Angeles and London, according to Knight Frank, a leading international property consultancy.
Dubai’s prime areas
The prime residential areas of Dubai, such as Emirates Hills, The Palm Jumeirah, and Jumeirah Bay Island, accounted for a total of $3.8 billion in luxury property sales.
The top spot in the global ranking was claimed by New York, which recorded 244 high-value property transactions totaling $4.4 billion. Los Angeles came in second with 225 sales worth $4.34 billion, followed by London, which saw 223 transactions amounting to $4.3 billion in value.
Last year, Dubai recorded 26 transactions involving properties valued at $25 million or more, earning it the rank of the fifth most active city globally in this market segment. This is just behind London with 43 deals, New York and Los Angeles with 43 and 39 transactions respectively, and Hong Kong with 28 deals.
Luxury real estate market
Dubai’s luxury residential market is attracting a growing number of high-end buyers due to its unique combination of being significantly undersupplied while still offering more affordable prices compared to other global markets. This is further enhancing the city’s overall appeal to big-ticket purchasers.
Last year, Dubai experienced the largest increase in luxury property prices globally, rising by 44.2%, which is significantly higher than other major cities such as Aspen with 27.6% growth, Riyadh with 25%, Tokyo with 22.8%, and Miami with 21.6%.
Residential properties
According to Faisal Durrani, Partner and Head of Middle East Research, Dubai has successfully cemented its position among the world’s renowned “hub cities” and is now considered one of the most desirable global markets for luxury residential properties.
“Dubai has arrived … The growing concentration of wealth in the city has been catalysed by the confluence of factors, ranging from the government’s decisive response to the pandemic, to the roll-out of a range of new residency visa options. $1 million in Dubai’s prime residential precincts translates into approximately 1,130 square feet of space, roughly five times more than Hong Kong and three times more than London or Singapore. These factors have fueled business and economic confidence and have in turn helped to supercharge demand for luxury homes,” Durrani said.
tanvir@dubainewsweek.com
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