Luxury real estate growing in demand: Palm homes purchased more frequently
According to Knight Frank, there has been a surge in sales of homes priced at $10 million and above in Dubai. In the first quarter of 2024, such ultra-luxurious properties worth $1,7 billion were sold, marking a 19% increase compared to 2023. This comes as no surprise, as there is fierce competition among high-net-worth individuals for the finest villas in the elite segment.
Dubai – the hub of luxury real estate
Dubai is currently the most active global market for luxury real estate. In 2023, 431 homes priced at $10 million or more were sold. London comes in second with 240 deals in this price range, nearly half of Dubai's transactions. New York follows with only 211 deals.
Top locations
Over the past 12 months, the supply of ultra-high-end homes has decreased by 59%, with only 864 properties available for sale in this price range. These villas are always in demand. As for the preferred locations, Palm Jumeirah, Jumeirah Bay Island, and Dubai Hills are leading in terms of the number of deals over $10 million.
Price increases
Following the surge in demand for luxury real estate, prices have also risen. In Dubai Hills, the cost of such homes increased by 11% over the past 12 months. In other locations, price growth ranged from 3-8%.
Dubai's luxury market has grown by 26,3% over the last 12 months. In 2023, there was a growth of 16.3%. In 2022, it surged by 44.4%. Despite this, Dubai remains one of the most affordable elite markets in terms of price per square meter.
New elite projects:
• Palm Homes – from $11,7 million;
• Six Senses Residences – from $1,5 million;
• Mercedes-Benz Places – from $2,4 million.