In 2023, Dubai witnessed an impressive surge in the sale of homes priced at $10 million and above, with transactions skyrocketing by over 92%, totaling 431 sales. This robust activity underscored the active participation of affluent investors in Dubai’s thriving real estate market. The year saw several records shattered, and indications suggest that this trend is set to continue throughout 2024.

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Faisal Durrani, Partner – Head of Research for MENA at the renowned property consultancy Knight Frank, remarked, “Dubai has reaffirmed its status as the world’s most dynamic $10 million plus homes market.”

Homes exceeding the $10 million mark, sold in the final quarter of 2023, experienced a remarkable 28% increase in value compared to the previous year.

Durrani observed, “The depth of demand from international buyers for Dubai’s most luxurious homes is also reflected in the fact that city-wide listings above $10 million decreased by 8.9 percent last year. Developers are actively responding to the emirate’s meteoric rise as one of the most sought-after luxury-second home markets globally.”

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In the first nine months of 2023, Dubai outperformed its closest rival, New York, selling over twice as many properties for over $10 million, with 159 deals compared to New York’s 323.

“Dubai has reaffirmed its status as the world’s most dynamic US$10 million-plus homes market” – Faisal Durrani of Knight Frank

Rising to the Challenge: A Surge in Multi-Million Dollar Developments Responding to the surge in demand, developers rushed to introduce high-rise projects and communities in the second half of 2023. These projects aimed to cater to the discerning needs of buyers willing to make substantial investments in the luxury real estate market.

“The voracity of international ultra-high-net-worth demand has also super-charged the $25 million plus (property) market,” noted Durrani. “The number of homes trading at this uber-swanky end of the market doubled in 2023 to 56 deals worth $2.3 billion.”

Palm Jumeirah and Jumeira Bay Island Reign Supreme Palm Jumeirah remained the top choice for buyers investing in $10 million properties, followed closely by Jumeira Bay Island. Despite this, Will McKintosh, Regional Partner and Head of Residential, MENA, highlighted that Palm Jumeirah had “9.5 percent fewer homes for sale last year than in 2022, reflecting the buy-to-stay and buy-to-hold attitude of the bulk of purchasers.”

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“The island’s location at the heart of New Dubai and recently achieved prestigious ‘Blue Flag’ status only adds to its appeal amongst the world’s elite looking for instant access to the ‘Dubai life.’”

This remarkable surge in Dubai’s luxury real estate market reflects not only its global appeal but also the strategic measures taken by developers to meet the escalating demand for opulent properties. As the market continues to evolve, it is poised to maintain its allure among international investors seeking a blend of luxury and investment potential.