In the first three months of 2024, 105 homes priced above $10 million were sold in Dubai, a 19 percent increase compared to Q1 2023, according to the latest analysis from global property consultant Knight Frank.
Faisal Durrani, Partner – Head of Research, MENA, explained that the demand for luxury homes in Dubai remains strong, particularly from international high-net-worth-individuals seeking the city’s most expensive properties. This high demand has led to a 59 percent reduction in the volume of $10 million+ homes for sale across Dubai over the past 12 months, leaving just 864 such homes available.
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The total value of luxury homes sold in Q1 2024 reached $1.73 billion, a 6 percent increase from Q1 2023. This solidifies Dubai’s position as the world’s busiest $10 million+ homes market, having recorded 431 such sales in 2023 – nearly 80 percent more than the next closest city, London (240 sales).
Palm Jumeirah remained the dominant luxury home market, accounting for 36.3 percent of Q1 2024 sales by value, worth $628 million. Jumeirah Bay Island (11.1 percent) and Dubai Hills Estate (7 percent) followed in second and third place, respectively.
While Palm Jumeirah led in the total number of luxury homes sold (39), other emerging markets like Palm Jebel Ali (10 sales) and Business Bay (7 sales) also saw strong demand for high-end properties.
According to Knight Frank, Dubai Hills Estate is quickly becoming a new hotspot for luxury home buyers, with its proximity to Downtown and New Dubai, access to international schools, and abundance of green space driving increased interest and price growth of nearly 11 percent over the past 12 months.
Knight Frank’s Destination Dubai 2023 report found that access to parks and green space is the most important consideration for global high-net-worth-individuals when investing in Dubai.
Prime residential market
Moreover, Dubai’s prime residential market, encompassing areas like Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills, has surged, growing by 26.3 percent over the last 12 months – one of the fastest rates globally. Despite these strong growth rates, Dubai’s luxury homes remain comparatively affordable, with $1 million securing 980 square feet of prime residential space, compared to just 366 square feet in New York, 355 square feet in London, or 172 square feet in Monaco.
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