Dubai’s prime residential real estate market continues to flourish, with 88 home sales above $10 million, totaling Dh6 billion, in the first quarter of 2023, according to a recent analysis by global property consultant Knight Frank. The Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island remain the top luxury home sales locations, with average transacted prices reaching Dh8,800 per square foot for $10 million homes in these sought-after areas. Other neighborhoods, such as the Al Wasl-Dubai Canal corridor and Tilal Al Ghaf, are also emerging as prime high-end destinations.
Faisal Durrani, Partner – Head of Middle East Research at Knight Frank, commented on the robust demand from local and international ultra-high-net-worth individuals (UHNWI) for homes in this price range, driving up prices in the exclusive luxury segment of the market. In fact, the first quarter of 2023 saw average transacted prices for $10 million plus homes reach Dh7,235 per square foot, marking a 16 percent increase from 2022.
Knight Frank’s study also revealed that while the Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills accounted for 64 percent of $10 million home sales in Q1, other areas are gaining prominence and could be classified as prime in the future. The Al Wasl-Dubai Canal corridor, with its branded residential sales, is becoming a hotspot for UHNWI seeking the most prestigious homes in Dubai’s desirable neighborhoods. Additionally, Tilal Al Ghaf has quickly joined the list of ultra-luxury neighborhoods, with several villas transacting for over $10 million, indicating its potential to become a prime location.
Andrew Cummings, Partner – Head of Prime Residential Sales, noted that Tilal Al Ghaf is setting a new benchmark for luxury living as an inland community that offers high-quality amenities. With a shortage of completed waterfront communities and limited development sites, inland communities like Tilal Al Ghaf are expected to continue growing in prominence in Dubai’s luxury real estate market.
Dubai’s prime residential market experienced remarkable price growth of 44 percent in 2022, making it the world’s fastest-growing luxury market. Knight Frank predicts that prime residential values in Dubai will rise by 13.5 percent, positioning the city as the fastest-growing residential market for the second consecutive year. Furthermore, with $1 million able to buy 1,130 square feet of prime residential space in Dubai’s prime neighborhoods, the city is considered the 16th most “affordable luxury” market globally, offering three times more space than cities like London, New York, or Singapore.
“Dubai’s prime real estate market is expected to sustain its upward trajectory due to the shortage of prime developments under construction and the relentless demand from UHNWI for luxury second homes,” said Durrani. As Dubai’s luxury real estate market continues to thrive, it presents lucrative opportunities for investors and homebuyers alike.
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