Dubai’s prime residential market has been ranked fourth globally as sales of ultra-luxury residences continue to soar amid a resilient economic recovery.
Citing a 2023 Wealth Report, Middle East Eye reported that this year, Dubai is poised to lead the world’s luxury property market, with prices rising by a whopping 13.5%.
Dubai’s Luxury Property
With the meteoric increase in ultra-luxury home sales, Dubai has landed just behind New York with 244 home sales, Los Angeles with 225, and London with 223 (in terms of the $10M-home sales).
For $25M-home sales, Dubai ranked fifth, just behind London with the highest number of 43 sales, New York with 43, Los Angeles with 39, and Hong Kong with 28.
In 2022, Dubai racked up around 219 sales worth roughly $10 million or above, compared to 93 in 2021—a jump of a staggering 135%.
The collective transaction is predicted to be over $3.8B.
The sale of luxury properties—more specifically, villas and “trophy” apartments—has witnessed a massive boom in Dubai, with the city’s upmarket neighbourhoods recording the best performance.
For example, despite the price for opulent residences spiralling upward, the uber-luxury neighbourhood of Palm Jumeirah is cementing its iconic status in the luxury residential market, chalking up the highest home sale in 2022.
The price of a villa in the city’s exclusive enclaves has soared by almost 80% on average since the onset of the COVID-19 pandemic.
Emirates Hills, Palm Jumeirah, and Jumeirah Bay Island are marked as the prime residential neighbourhoods of Dubai.
With the Dubai luxury market seeing a massive influx of elites preferring contemporary interior designs, the demand for high-end interior design studios like Accouter is getting a push in Dubai.
By bringing out the best of both worlds—interior architecture and design—a high-end interior design company can turn a space into a unique, timeless environment.
Reasons Behind Dubai’s Luxury Home Sale Boom
Even though the increasing inflation rate and tough economic headwinds have caused a massive downturn in the residential market in the West, the Emirate’s luxury market is poised to see substantial growth this year.
Awash with luxury villas, penthouses, and exclusive hotels combined with excellent safety, climate, and unparalleled sun-sea-sand lifestyle—Dubai has now become the preference of ultra-high-net-worth buyers.
The city has long been synonymous with opulence, thus making a reputation for itself as the stomping ground of the ultrarich.
Additionally, the city has been marked as one of the world’s most ‘affordable’ luxury residential markets, with most prime homes transacting for only $870/sq. ft on an average.
UAE’s affordable mortgage plans, a tax-free regime, and ease-of-doing business are the key incentives for wealthy buyers around the globe to snap up properties in Dubai.
Additionally, the country’s excellent management of the COVID-19 pandemic has sparked a tremendous comeback making luxury property sales skyrocket.
More recently, the city’s prime residential market is witnessing wealthy buyers from Russia flocking to Emirates as sanctions drive oligarchs out of Europe.
Property agents predict at least 100,000 Russians have settled down in the UAE since the onset of the Russian invasion of Ukraine, which has almost doubled the size of the community there.
Dubai’s luxury property market is witnessing substantial growth, buoyed by a large number of ultrarich snapping up properties in the prime neighbourhoods.
Sohela is an electrical engineer and a self-professed writer with a keen interest in all things tech. When she’s not writing killer content pieces, you’ll find her enjoying tempting foods in her favourite restaurants.