Sales of expensive homes more than doubled last year in Dubai, as some of the world’s wealthiest people buy homes in the Middle East’s business and tourism hub. Knight Frank data shows that 56 very expensive homes (in the $25 million and above category), worth a total of $2.27 billion, were sold in the city in 2023. Last year, 28 such properties were sold, with a total value of $1.24 billion.
Most of the luxury properties sold (22 out of 56) are located in the man-made island system Palm Jumeirah which forms a palm tree, while another 15 are in the Jumeirah Baywhich is shaped like a seahorse.
Demand for property in Dubai is very high as the government’s handling of the pandemic and loose allocation policies visa attract more foreigners, notes Bloomberg. The most luxurious part of the market is also benefiting from a new wave of investors, be it Russians who are looking for a safe haven for their assets either cryptocurrency millionaires or Indians who are looking for a second home.
“The world’s ultra-wealthy continue to focus on Dubai, with the city’s lifestyle and relatively affordable luxury homes being the main draw factors,” explains Faisal Durrani, Knight Frank’s Middle East chief analyst. “There is also an element of concentration of international wealth in Dubai, which helps give the emirate a critical mass, which in itself becomes a magnet for the global elite.”
New categories of buyers, such as from Monaco, are turning to Dubai, while interest from China is also increasing, Durrani emphasizes.
The most expensive sale of 2023 was for a five-bedroom apartment at Como Residences, a yet-to-be-built high-rise in Palm Jumeirah. The 2,039 square meter apartment sold for $136.2 million.
This shift to very expensive homes is a new phenomenon in Dubai. Before 2021, a maximum of four homes sold over $25 million per year.
