In the latest analysis covering Q3 2023, Dubai’s prestigious properties, with a staggering price tag exceeding $10 million, recorded a collective sales volume reaching $1.59 billion. The insight, brought forward by Knight Frank, identifies that top investors from China, UAE, the UK, and India are keenly investing in these illustrious properties.

Faisal Durrani, partner and head of research for the Middle East and Africa region, remarked, “Demand for luxury homes in Dubai remains resilient, and supply continues to lag demand stubbornly. The total number of $10 million home sales in Dubai for the first nine months of the year has hit 277, a record high with three months of the year still left to run. This builds on Dubai’s emergence as the world’s busiest $10 million-plus sales market during first-half, ranking ahead of New York (125), Hong Kong (109), and London (99)”.

Knight Frank’s study further elaborates that, by the conclusion of Q3, the average transaction price for these opulent homes was pegged at Dh6,557 per square foot.

Dubai’s appetite for luxury residences shows no sign of slowing down by continually attracting domestic and global buyers. Prime residential zones, especially The Palm Jumeirah, consistently spark interest. This iconic location alone accounted for over half (52.3%) of the total sales within the exclusive $10 million bracket.

With its grounding within Madinat Jumeirah Living, Umm Suqeim emerges as another prime location. Notably, the average sales price here reaches Dh15,700 per square foot – 62% above its closest rival, Business Bay.

Durrani further elaborated on the market’s trajectory, stating, “The extraordinary run of price rises in this third market cycle has seen prices escalating for nine consecutive quarters. Dubai’s prime neighbourhoods of the Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island have been and continue to be the real stars of this cycle, leaving prime values 15.9 per cent higher than this time last year”.

In the current scenario, it is clear that Dubai’s luxury real estate market is thriving, with cash transactions being predominant. The buyer pool’s diverse nature and the market’s limited stock, especially for premium beachfront properties, are anticipated to propel price growth until supply eventually meets the soaring demand.