Dubai has outperformed Hong Kong and New York in terms of luxury property Transactions
According to the latest information from Knight Frank released on 6 July, as the desire for luxury real estate continues unabated, Dubai became the busiest $10 million and above market in the world in the first quarter of 2023 with 92 transactions.
Between January and March 2023, the emirate slightly outperformed Hong Kong (67) and New York (58) in terms of real estate deals totaling $10 million or more.
According to the real estate consultancy business, the number of luxury property sales in Dubai valued at $10 million grew to 176 deals in the first half of 2023, totaling $3.1 billion (Dh11.377 billion).
The wealthy Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island areas, which continue to dominate sales, accounted for 63% of all home sales in Q2 valued $10 million or more.
According to partner and director of Middle East research Faisal Durrani, 79% of all residences valued at $10 million that will be sold in the city in 2022 have already been sold.
According to Andrew Cummings, partner and head of prime residential, Dubai residents’ wealthy tastes for convenience and a sense of presence in the city are what are driving the desire for lavish residences with quick occupancy.
“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
Millionaires are relocating to the emirate, driving up demand due to factors such as the high level of life, excellent return on investment, and safety.
According to the most recent survey by Henley & Partners, the UAE will welcome 4,500 millionaires this year, which is the second-highest number behind Australia.
In 2022, the UAE brought in 5,200 high-net-worth individuals, more than double its original forecast of 4,000.
Durrani added that the majority – 86 percent – 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 neighborhoods,” he said.
Prices still affordable
The average sales price for all homes worth $10 million or more during the second quarter was $16.5 million.
Due to the high demand, prices for flats and villas increased by 15% and 46%, respectively, by the end of June 2023.
Pricing remains fair because the average transaction price is around Dh6,900 per square foot.