Luxury real estate on the rise: Increased demand for homes on the Palm
According to Knight Frank, Dubai has seen a surge in the sale of homes priced at $10 million and above. In the first quarter of 2024, sales of such ultra-luxurious properties amounted to $1,7 billion, a 19% increase compared to 2023. This rise is not surprising, as there is fierce competition among high-net-worth international buyers for the best villas in the elite segment.
Dubai: The hub of luxury real estate
Today, Dubai stands as the most active market for luxury real estate worldwide. In 2023, 431 homes priced at $10 million and above were sold. London followed with 240 transactions in this price segment, showcasing a nearly twofold difference. New York ranks third with 211 such sales.
Prime locations
Over the past 12 months, the supply of ultra-expensive homes has dwindled by 59%, with only 864 properties currently available at these price points. These villas are in constant demand. The leading areas for transactions over $10 million are Palm Jumeirah, Jumeirah Bay Island, and Dubai Hills.
Price increases
With the rising demand for luxury real estate, prices have also escalated. Over the past year, home prices in Dubai Hills have increased by 11%. Other locations have seen price hikes ranging from 3-8%.
The luxury market in Dubai has grown by 26,3% over the last 12 months. In 2023, the growth was 16,3%, and in 2022, it was 44,4%. Despite this, Dubai remains one of the most affordable luxury markets in terms of price per square meter.
New luxury projects:
Palm Jumeirah Home – from $11,7 million.
Six Senses Residences – from $1,5 million.
Mercedes-Benz Places – from $2,4 million.