Rich homebuyers help lift Dubai's luxury real estate to $7.6 billion

The luxury real estate market in Dubai is booming, with the world's wealthiest individuals increasingly eager to snatch up properties in the UAE emirate. Sales of luxury homes in Dubai skyrocketed to an impressive $7.6 billion last year, marking a new pinnacle in the city’s status as a global hub for high-end real estate buyers.

The super-rich are shopping for homes somewhere warm and amenable – and Dubai is the perfect place. Dubai’s prime residential market stands out globally, seeing record price growth in recent years driven by the city’s attractiveness for international ultra-high-net-worth individuals.

That is according to a report from Knight Frank, a globally operating real estate consultancy and broker.

Dubai properties are actually pretty affordable when compared with other top luxury real estate cities. In fact, residential prices trail 2014 peak levels by 15%. In 2023, the prime market is expected to have grown at a rate of 13%, outpacing the mainstream market. A relatively low supply and a high demand for luxury waterfront properties have intensified the buzz in the city’s real estate landscape.

“Dubai has doubled down on its position as the world’s most active $10 million-plus homes market,” said Faisal Durrani, partner and MEAN head of research at Knight Frank.

“The depth of demand from international buyers for Dubai’s most luxurious homes is also reflected in the fact that city-wide listings above $10 million fell by 9% last year. Developers are still scrambling to respond to the emirate’s meteoric rise as one of, if not the most sought-after luxury-second home markets in the world.”

Dubai is only behind New York, Los Angeles, and London in the number of luxury homes sold, making it the fourth leading city for $10 million-plus homes. It is also in fifth place for the largest number of $25 million-plus homes sold.

“Indeed, the voracity of international ultra-high-net-worth demand has also super-charged the $25 million plus, or super-prime market. The number of homes trading at this uber-swanky end of the market doubled in 2023 to 56 deals worth $2.3 billion,” said Durrani.

According to a previous report from Knight Frank, the prices for luxury homes surged by 48% last year in Dubai, making it one of the hottest real estate markets in the world. It was revealed last year that some of that remarkable growth is driven, in part, by Russians who are eagerly buying up properties in the UAE.