In a remarkable achievement for the year 2023, Dubai has taken the lead as the world’s premier luxury property market, surpassing renowned cities such as London, New York, and Paris. According to the latest market report, the city has generated an impressive sum of approximately $850 million (AED 3.1 billion) from high-end residential units priced at $10 million or above during the first half of the year.
Throughout the January-June period, a total of 176 high-end property sales were recorded, including notable transactions that made headlines. One of the standout deals was the extraordinary $111.6 million (AED 410 million) sale of a penthouse in the prestigious Bulgari Lighthouse residence on Jumeirah Bay Island.
Dubai’s real estate market exhibited unparalleled growth and success during this period, firmly establishing its position as the leading destination for luxury property investments globally. The growing international attention on Dubai has led to a significant surge in the off-plan sales market, accounting for 50% of all property sales during the first half of 2023.
The heightened demand has resulted in an impressive average growth of 17% in residential property sales prices across Dubai, particularly in the luxury segment, according to the market report from Allsopp & Allsopp, recognized as the largest independent real estate agency in the city. Lewis Allsopp, the CEO of Allsopp & Allsopp, expressed surprise at the extraordinary AED 410 million penthouse sale, stating, “Even my crystal ball did not foresee the sale of an AED 410 million penthouse coming, as Dubai became the leading global luxury real estate market in the world for homes sold upwards of $10 million [in H1, 2023].”
The heightened demand has led to fierce competition among potential buyers, with an average of four buyers vying for each listed property. This intense competition has driven the average sales price up to AED 3.6 million, representing a notable increase of close to 10% in the past six months.
The first six months of 2023 saw the Dubai property market performing at record levels, with sales totaling $48.46 billion (AED178 billion), a sharp rise of 55.4% from H1 2022, according to Allsopp & Allsopp. The report highlighted a surge in new buyer registrations, property viewings, and sales, demonstrating a robust end-user market in Dubai. Overseas investors have been drawn to Dubai, initially eager to experience the lifestyle, and once here, have been seduced into investing in its future, amid financial and cultural instability witnessed in Europe, the US, and other significant markets. While luxury branded launches and mega-villa sales grabbed headlines, the rest of the market also performed well in terms of sales and price rise, showcasing a maturing and stable real estate market in the city.
