New record for Dubai as luxury home sales hit US$ 7.6bn in 2023

Dubai | 16 January 2024: The total number of US$ 10 million plus home sales in Dubai grew by 92.4%to 431 sales during 2023, according to analysis carried out by global property consultancy, Knight Frank.

The total value of sales above this price point grew by 91% last year to US$ 7.6 billion, 28% of which was achieved in Q4 alone.

Faisal Durrani, Partner – Head of Research, MENA, said: “Dubai has doubled down on its position as the world’s most active US$10 million plus homes market. The depth of demand from international buyers for Dubai’s most luxurious homes is also reflected in the fact that city-wide listings above US$ 10 million fell by 8.9% last year. Developers are still scrambling to respond to the emirate’s meteoric rise as one of, if not the most sought-after luxury-second home markets in the world.”

“Indeed, the voracity of international ultra-high-net-worth demand has also super-charged the US$ 25 million plus, or super-prime market. The number of homes trading at this uber-swanky end of the market doubled in 2023 to 56 deals worth US$ 2.3 billion”.

Knight Frank’s analysis also reveals that during the first nine months of 2023, Dubai had already sold more than twice as many homes priced over US$ 10 million than its nearest competitor – New York, which recorded 159 deals, against 323 in Dubai.

Similarly, Dubai’s US$ 10 million+ residential property market registered sales totalling US$ 5.8 billion between Q1-Q3 2023, nearly double the level of second-placed London (US$ 3.2 billion).

The beach life

The Palm Jumeirah remains at the epicentre for luxury home sales in Dubai, according to Knight Frank.

Dubai’s first iconic palm tree shaped island accounted for 38.5% of homes sold for more than US$ 10 million during 2023 (or 166 deals), and 39.2% (or 22 deals) of sales of more than US$ 25 million.

Will McKintosh, Regional Partner and Head of Residential, MENA, added: “The Palm Jumeirah’s appeal is now universal, and the island has well and truly cemented its status as one of the most desirable addresses globally. And in line with the broader trend we are seeing in Dubai of genuine end-users and second-home buyers dominating transactional activity, inventory levels are slipping.”

The Palm Jumeirah, for instance, had 9.5% less homes for sale last year than in 2022, reflecting the buy-to-stay and buy-to-hold attitude of the bulk of purchasers. The island’s location at the heart of New Dubai and recently achieved prestigious Blue Flag status only adds to its appeal amongst the world’s elite looking for instant access to the ‘Dubai life’ ”.

Following closely behind the Palm Jumeirah for the total number of homes sold for more than US$ 10 million in 2023 is Jumeirah Bay Island (47 sales) and the recently launched Palm Jebel Ali (36 transactions).

Knight Frank says that the Palm Jebel Ali’s record sell-out of the first tranche of homes in September last year underscores the depth of demand for luxury beach-front homes in Dubai.

The instant success of the Palm Jebel Ali highlights the local and international appetite to secure a beach-front home on Dubai’s next palm island, which is set against a broader backdrop of a shortage of sea-side homes, according to Knight Frank

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