The market for ultra-luxury homes in Dubai has experienced a remarkable surge, with the sale of residences priced at £18 million (Dh92 million) or more doubling to 56 last year. A reduced inventory of available homes drove this substantial increase compared to the previous year.
Data from Knight Frank revealed that the total value of transactions for properties exceeding £18 million (Dh85 million) reached £1.7 billion (Dh8.4 billion) in 2023, showcasing a persistent demand for the ultra-luxury property segment.
In a report released last week, the property consultancy highlighted that the total number of homes sold in Dubai for £8 million (US$10 million) or more witnessed a remarkable 92.4% increase, totalling 431 transactions in 2023.
The overall value of sales above the £8 million price point grew by 91%, reaching £6.2 billion last year, with a notable 28% of this figure achieved in the fourth quarter alone.
Faisal Durrani, Partner – Head of Research, Mena, at Knight Frank commented, “Dubai has reaffirmed its status as the world’s most active £8 million-plus homes market. The substantial demand from international buyers for Dubai’s most luxurious homes is also evident as city-wide listings above £8 million decreased by 8.9% last year. Developers are racing to keep up with the emirate’s rapid ascent as one of the most sought-after luxury second-home markets globally.”
Further analysis from Knight Frank indicated that during the first nine months of 2023, Dubai outpaced its nearest competitor, New York, selling more than twice as many homes priced over £8 million – 323 in Dubai compared to 159 in New York.
The £8 million+ residential property market in Dubai also outperformed other global cities, with sales totalling £4.3 billion between Q1 and Q3 2023, nearly double the level of London, which came in second at £2.4 billion.
The Palm Jumeirah retained its position as the central hub for luxury home sales in Dubai, accounting for 38.5% of homes sold for more than £8 million in 2023 (166 deals) and 39.2% (22 deals) of sales exceeding £18 million.
Will McKintosh, Regional Partner and Head of Residential for Mena at Knight Frank, noted that Palm Jumeirah’s appeal was now universal, and said the island had “well and truly cemented its status as one of the most desirable addresses globally”.
Palm Jumeirah witnessed a 9.5% decrease in available homes for sale in 2023 compared to 2022, reflecting the prevalent buy-to-stay and buy-to-hold mindset among purchasers.
The island’s central location in New Dubai and recently achieved prestigious Blue Flag status further enhances its allure among the world’s elite seeking immediate access to the vibrant ‘Dubai life’.
Close behind the Palm Jumeirah for the total number of homes sold for more than £8 million in 2023 are Jumeirah Bay Island (47 sales) and the recently launched Palm Jebel Ali (36 transactions).
