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The total value of luxury homes sold in the first quarter of 2024 amounted to $1.73 billion, which is 6% higher than in 2023
According to the latest analysis conducted by the global analytical service Knight Frank, Dubai saw 105 homes priced above $10 million sold in the first three months of the current year, representing a 19% increase compared to the first quarter of 2023.
Faisal Durrani, Partner and Head of MENA Research at Knight Frank, explained, "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."
The heightened interest from wealthy individuals worldwide in Dubai is best illustrated by the rapid decrease in the volume of homes listed for sale priced above $10 million, which has fallen by 59% over the last 12 months citywide to just 864 homes.
The total value of luxury homes sold in the first quarter increased by 6% compared to the first quarter of 2023. This is attributed to Dubai's super-luxury real estate market becoming the world's most active.
According to Knight Frank, Dubai saw 431 units of housing priced above $10 million sold last year, nearly 80% higher than its closest competitor, London (240). New York (211 units) in 2023 led the top three most active luxury housing markets in the world.
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Most popular locations
In the first quarter, Palm Jumeirah registered transactions worth $628 million and dominated the luxury housing market. The area accounted for 36.3% of total sales. Jumeirah Bay Island (11.1%) and Dubai Hills Estate (7%) ranked second and third, respectively.
While Palm Jumeirah also leads in the overall number of luxury homes sold, Palm Jebel Ali and Business Bay recorded more luxury housing sales than Jumeirah Bay Island or Dubai Hills Estate.
According to Knight Frank, other markets, except for Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills, are quickly gaining popularity among luxury home buyers, for example, real estate in Dubai Hills, which is also worth considering.
In conclusion
Will McKintosh, Regional Partner and Head of Prime Residential at MENA, said, "Dubai Hills Estate has quietly for some time been rising up the ranks as not only one of Dubai’s most sought-after markets for domestic buyers, but now luxury home buyers are increasingly active here too."
"The relative proximity to both Downtown and New Dubai, combined with access to an international school, excellent neighborhood facilities and amenities, and, of course, its abundance of green space, is quickly making Dubai Hills Estate one of Dubai’s most desirable neighborhoods. Prices have unsurprisingly responded to the growing demand to live here and have risen by almost 11% in the last 12 months, while the number of homes available for sale has fallen by 75% to just over 1,000 units this past March."
Earlier, Knight Frank in its Destination Dubai 2023 report found that access to parks and greenery is the most important factor for foreign investors worldwide when considering investments in the emirate.
According to Knight Frank, the luxury residential real estate market in Dubai, which includes Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills, is also experiencing a sharp increase.
Durrani concluded, "After growing by 16.3% in 2023, following an extraordinary 44.4% increase during 2022, Dubai’s prime residential market has grown by 26.3% over the last 12 months, easily making it one of, if not the fastest growing prime residential market globally. While these startling growth rates are phenomenal, it does not take away from the fact that Dubai’s luxury homes market still remains one of the most affordable in the world."
Indeed, for $1 million, one can acquire approximately 980 sq. ft of luxury residential area here, compared to just 366 sq. ft for the same price in New York, 355 sq. ft in London, or 172 sq. ft in Monaco.
