Dubai’s $10 million-plus property sales hit all-time high as millionaires flock to emirate

Demand for Dubai’s $10-million plus homes has seen a massive increase with sales more than doubled last year as elites and millionaires flocked to the emirate after the pandemic.

Global property consultant Knight Frank said 219 transactions for properties with over $10 million value were made last year as compared to 93 in the previous year in Dubai, an increase of 135 per cent.

With average transacted prices at around Dh3,250 per square foot or about $885 per square foot, it remains one of the world’s most affordable luxury home markets.

“The meteoric rise of Dubai’s multi-million-dollar homes market over the course of the last two years has been phenomenal. From just 11 ultra-prime sales in 2010, 2022 has registered 219 deals above the $10 million mark – more than the total recorded between 2010 and 2020,” said Faisal Durrani, partner – head of Middle East Research, Knight Frank.

"The performance at the top of the market clearly demonstrates the arrival of Dubai as a luxury hub to rival long-established markets elsewhere, with no sign to suggest a slowdown in the seemingly relentless demand from global ultra-high-net-worth-individuals zeroing in on the emirate in search of second homes," he said.

Dubai has seen a massive inflow of high-net-worth individuals in the last two years after the pandemic.

A study released by Henley Global Citizens Report last year projected that the UAE would attract the largest number of millionaires in the world this year. it was estimated 4,000 millionaires would migrate to the UAE in 2022, surpassing the big countries like Australia, Singapore, Israel, Switzerland, the USA, Canada, New Zealand, the UK, India and others.

Andrew Cummings, partner head of prime residential, added that the buyer pool remains exceptionally diverse, ranging from Europe, India, Europe, Asia the UK and Eastern Europe, drawn by Dubai’s climate, safety, security, cosmopolitan lifestyle and incredibly forward-thinking leadership.

Durrani added that Knight Frank’s 2023 Global Attitudes Survey showed that amongst the region’s wealthy, the UAE remains the second most likely target for a home purchase this year, behind the UK.

Whilst the traditional prime areas have continued to experience robust trading, new communities too have seen a surge in luxury sales. Dubai Hills as an example has had 15 deals over $10 million in 2022, including a record sale at Dh205 million. Equally, Tilal Al Ghaf sold out its Dh45 million Crystal Lagoon front villas and recently made a splash with the signature sale of a Lanai Islands mansion for over Dh90 million.

Ata Shobeiry, chief executive officer at Zoom Property, said luxury properties have witnessed a massive surge in demand during the last couple of years.

“I believe the Dubai luxury segment will continue to grow in 2023 as many new projects by top-of-the-line developers are lined up. Despite the price increase, investors will continue to favour them as these properties tend to offer a high return on investment,” he said.

Price growth

The emirate’s prime markets, which include Emirates Hills, Jumeirah Bay Island and The Palm Jumeirah, collectively registered price growth of 44 per cent during 2022.

Palm Jumeirah remains the city’s star performer, with villa prices increasing by 49.4 per cent last year. Villa prices have risen by 96 per cent since the start of the pandemic but remain at about Dh3,000 per square foot.

Apartments too in the most sought-after locations have seen significant price rises. Interestingly, Dubai Hills Estate leads, closely followed by The Palm Jumeirah and Downtown Dubai.

— waheedabbas@khaleejtimes.com

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