Dubai’s premium property market surpasses previous sales milestones

In Dubai's third quarter of 2023, buyers invested $1.59 billion in properties priced at $10 million and above.

According to Knight Frank's data, the total expenditure on ultra-luxurious residences has now climbed to $4.91 billion this year, with 277 high-end properties sold.

Faisal Durrani, the head of research for MENA at Knight Frank, highlighted that Dubai led the luxury property market in the first half of 2023, surpassing other global hotspots like New York, Hong Kong, and London.

By the close of Q3, the average transaction price for these top-tier properties stood at AED 6,557 per sq. ft. Notably, the Palm Jumeirah was responsible for a significant 52.3% of sales in the $10 million-plus category.

In contrast, Umm Suqeim Third, featuring the Madinat Jumeirah Living development, boasted average prices of AED 15,700 per sq. ft. This is a notable 62% spike compared to its closest rival, Business Bay, as reported by the real estate firm.

Regarding the trends, Durrani mentioned a consistent price surge over the past nine quarters in Dubai's third real estate cycle. He added, "Dubai's premier locations, such as the Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island, remain the shining stars, pushing prime values up by 15.9% compared to the same period the previous year."

Knight Frank emphasized that cash purchasers primarily drive Dubai's real estate landscape. With limited prime market inventory, the demand for luxury and beachfront residences remains robust. This was evident in the rapid sales of the initial set of villas at Palm Jebel Ali, as highlighted by the company.