The real estate market in Dubai continues to boom, as the emirate beat London and New York to become the world’s biggest market for $10 million plus homes. Dubai’s luxury home sales with a value of over $10 million, crossed the $3.1 billion mark in the first half of 2023 amid higher demand for prime property in the emirate.

The total number of homes sold during the six-month period from January to June stood at 176, according to a report by global property consultancy Knight Frank. The rising volume has helped drive apartment and villa prices to 15 per cent and 46 per cent, respectively, during the period.

According to the report, sales of $10 million plus homes in the emirate rose to 431 residences in 2023, a growth of 92.4% when compared to the previous year’s 224. Last year, the total value of sales above this price point grew by 91per cent to reach $7.6 billion, 28per cent of which was achieved in Q4 alone. “Dubai has doubled down on its position as the world’s most active $10 million plus homes market. The depth of demand from international buyers for Dubai’s most luxurious homes is also reflected in the fact that citywide listings above $10 million fell by 8.9 per cent last year,” said Faisal Durrani, Partner – Head of Research, MENA.

“With average transacted prices continuing to hover at around Dh6,900 per square foot or about $1,800 per square foot, the emirate continues to offer relatively affordable access to luxury living,” added Durrani. According to Durrani, developers were still scrambling to respond to the emirate’s rise as one of the most – if not the most – sought-after luxury-second-home markets in the world.

Knight Frank’s analysis also revealed that during the first nine months of 2023, Dubai sold more than twice as many homes priced over $10 million than its nearest competitor, New York, which recorded 159 deals, against Dubai’s 323.

Palm Jumeirah remained the ‘epicentre’ of luxury home sales. Following closely behind the Palm Jumeirah was Jumeirah Bay Island, with 47 sales in 2023 and the recently launched Palm Jebel Ali, with 36 transactions.

“The demand for luxury properties in the resale market, offering immediate occupancy, remains robust, driven by the discerning preferences of Dubai residents seeking both utility and a sense of presence within the city,” said Andrew Cummings, partner and head of prime residential at Knight Frank.

Luxury homes are being sold for record prices in Dubai as demand continues to pick up for plush property in the emirate. A Versailles-like mansion is being sold for Dh750 million ($204 million) in Emirates Hills, according to Luxhabitat Sotheby’s International Realty.