Dubai reported 88 homes selling at values exceeding $10 million per property in the first quarter, compared with 67 in Hong Kong and 58 in New York, according to a report by global real estate consultancy Knight Frank, which tracks purchases in 12 markets. This shows that Dubai is leading a rebound in luxury property sales.
These sales pushed the total global deals to 417 luxury properties, the most since the second quarter of 2022.
The report concluded that global high-net-worth individuals plan to spend $2.5 billion on real estate in Dubai this year.
About 22 percent of the wealthy are willing to pledge between $5 million and $10 million on real estate in the emirate, while 8 percent are willing to spend more than $80 million, according to Knight Frank.
The consulting firm said East Asian buyers have a greater propensity for spending, with many preparing to set aside more than $20 million to buy property in Dubai.
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Last year, $3.8 billion was spent on homes in Dubai where prices exceeded $10 million.
The Knight Frank report surveyed 183 wealthy people globally, each with a net worth of more than $3 million, excluding their main home or residence. Together, the group owns 851 homes globally and has a combined net worth of $3.2 billion.
Liam Bailey, Global Head of Research at the company, said: “Dubai’s role in supporting the global luxury real estate market cannot be overlooked. Dubai’s sales boom has helped push initial prices higher since the beginning of 2020, far outperforming the figures in similar markets.”
Faisal Durrani, Partner and Head of Middle East Research at Knight Frank said: “Dubai has reached a tipping point… The outstanding transport infrastructure, unparalleled global connectivity, and exceptionally superior driving have lept Dubai’s reputation and stature globally, as evidenced by the constant demand from international wealthy people to own second homes here or, in fact, move to the emirate.”
Real estate transactions rose in Dubai and Abu Dhabi last year amid rising demand from buyers.
The Dubai Media Office said in April that the sector recorded a total value of deals worth 157 billion dirhams in the first quarter of 2023, a year-on-year increase of 80 percent.
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