In the first quarter of 2023, Dubai witnessed a 6% rise in sales of luxury homes worth $10 million or more, driven by international buyers and highlighting its position as a global real estate hotspot.
In the first quarter, the market for high-end homes in Dubai priced at $10 million or more saw a 6% increase compared to the same period last year, as revealed in a recent industry report on Tuesday. The data indicates sustained interest from the global elite in acquiring property in the emirate.
During the January to March period, 105 luxury homes, cumulatively valued at $1.73 billion, changed hands, which marks an increase from the previous year’s $1.6 billion, per insights from property consultancy Knight Frank. The majority of these transactions were cash purchases. The palm tree-shaped artificial island, Palm Jumeirah, was the preferred location, capturing 36.3% of the total sales value. It was followed by Jumeirah Bay Island and Dubai Hills Estate in terms of popularity.
Dubai, which hosts the world’s tallest building, is aiming to expand its economic footprint by boosting tourism, developing a local financial hub, and attracting international investment, particularly into its real estate sector.
Despite the recent surge, there are concerns among developers, investors, and brokers about the potential for a significant downturn, reminiscent of the 2008 financial crisis, that could impact the property market.
Last year, Dubai led the world in luxury home sales exceeding $10 million, outperforming London by nearly 80%, as reported by Knight Frank. Unlike other major cities like London and New York, where luxury property prices declined, Dubai experienced substantial price increases in this segment, as noted in a February report by Knight Frank.
Faisal Durrani, Knight Frank’s head of research for the Middle East and Africa, commented on the robust activity in the upper echelons of Dubai’s real estate market. “The level of deal activity in Dubai continues to strengthen, particularly at the top end of the market, where the near constant stream of international high-net-worth-individuals vying for the city’s most expensive homes persists,” said Durrani.
Durrani also mentioned to Reuters that Dubai’s luxury homes offer better value compared to other major cities globally, stating that $1 million can secure approximately 980 square feet of residential space in Dubai, “about three or four times more than you would get in most major global gateway cities”.
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