Demand for luxury real estate in Dubai continues to surge
Prime and super-prime transaction volumes continue to grow in property hotspots such as the Palm Jumeirah, as the luxury home sales increase in Dubai mirrors emerging trends seen in global cities, such as London.
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Dubai super prime residential market
At Knight Frank here in Dubai, we have seen a strong surge in demand for super-prime homes, valued at over AED 20 million, with both enquiries and transactions steadily rising. The number of AED 20 million plus home sales recorded in May across the emirate is the third highest monthly total ever recorded – the record is 78 home sales in this price bracket, set during the summer of 2009.
March 24th and May 22nd 2021 have set the highest and second highest record for the number of AED 20 million plus home sales on the Palm Jumeirah, highlighting the appeal of the location to wealthy global buyers.
At a time when the world's property markets are still finding their feet following the crippling impact of the pandemic, luxury homes in Dubai remain in very high demand. Dubai's decisive handling of the pandemic, being one of the first locations in the world to return to some semblance of normality and its relatively affordable luxury homes, especially when compared to London, New York and Singapore, where $1 million buys you five times less space, means we expect demand for super prime homes to continue rising.
Indeed, as more global economies reopen and 'revenge spending' ensues, Dubai's ultra-luxury homes are expected to remain a prime target amongst the world's wealthiest.
The world’s super wealthy have been snapping up ultra-luxury homes in places such as the Palm Jumeirah. During May alone, there were 35 sales of homes priced at over AED 20 million across Dubai, almost two-thirds of which were on the Palm Jumeirah.
Dubai prime residential market
We are also continuing to see the sale of prime residential homes priced at over $10 million rising sharply in Dubai, with 22 sales of homes worth more than $10 million between January and May, compared to a total of 19 last year. Even if we step back to the period before the pandemic, the number of home sales in this price bracket so far this year is at the highest level since 2015. Home buyers are clearly oozing with confidence when it comes to the emirate’s uber-luxury homes market.
The majority of the transactions in the $10 million plus range has been for homes on the Palm Jumeirah, where the most expensive home to sell this year was a $30.3 million (AED 111 million) villa. Overall, the most expensive deal so far this year was on Jumeirah Bay Island, where a European buyer purchased a home worth $32.9 million in July.
The rebounding of Dubai’s prime market echoes a wider global trend, signalling the start of a potential ‘Roaring Twenties’ for global real estate. With over 42,000 million-dollar homes, Dubai is second only to London, where luxury home sales have also rebounded since the start of this year.
What does it mean?
Dubai remains the epitome of lifestyle living, and the surge in interest at the current time reinforces its appeal with wealthy buyers looking for well designed, luxury homes with a beachfront location.
The overriding sentiment in both the super-prime and prime sectors is certainly one of positivity, with global buyers continuing to see the appeal of Dubai for real estate investment. We have witnessed high levels of transactional activity recently in the prime marketplace, with the appeal of Palm Jumeirah as an example, still more popular than ever.
In addition to the obvious advantages of its year-round sunshine and climate, our clients also welcome being in one of the safest cities in the world where families can relax and enjoy the benefits that come from living in Dubai.
Below is a prime example of the type of luxury residential property that is so in demand:
For more information please contact Faisal Durrani