Super-prime residential sales have seen a global downtrend, but Dubai has managed to buck this trend as it is leading the world ranking of quarterly deals in this particular category of properties valued at over $10 million.
Knight Frank, the global property consultant, published a super-prime intelligence report on home sales in the three months to September across 12 markets.
The research shows that other than Dubai, there were four more markets that were able to record an increase in the last quarter on a year-to-year basis, bucking the general dip in this sector.
There was a 2.4% decline in global super-prime residential sales in the third quarter on a year-on-year basis.
In the three months to September, the total number of sales recorded in 12 markets was 362, while the number of sales recorded in the same period last year stood at 371.
Knight Frank revealed in its study that the ranking of quarterly sales was once more led by Dubai and the emirate has held this position since the fourth quarter of last year.
In second position comes London, with the third spot going to Hong Kong.
It is not just new-build completions that are driving the super-prime market. Completion delays that happened in 2020 had resulted in higher sales volumes in 2021.
However, now entering 2024, there will be a weakening in new build sales because of the reduced volume of new projects started during the pandemic will be felt.
Knight Frank’s research showed that in the third quarter, the volume of super-prime residences valued at more than $10 million and sold in Dubai had reached a total of $1.59 billionn.
Prime property developer Sobha Group’s chairman, PNC Menon, said that the data did not come as a surprise because Dubai is one of the world’s most sought-after destinations amongst the super-rich.
This is primarily due to the city’s overarching appeal as a spending and safe haven of a diverse combination of cultures and nationalities.
Menon said that there were a variety of factors that have propelled the growth of Dubai’s property sector, such as infrastructure development, consistent innovation, economic stability, along with a cosmopolitan lifestyle.
The realty sector of the city has a very bright outlook and in the years to come, Dubai will see a steady rise in its population.
Luxury homes in Dubai have continued to see resilient demand, while supply is lagging rather stubbornly.
The first nine months of the year saw a total of 277 sales of homes in Dubai that were valued at above $10 million, which is a record high, given that there were three months still remaining.
This is understandable, given that the first half of the year saw Dubai become one of the busiest sales market of homes valued at over $10 million.
It managed to surpass New York, Hong Kong and then London, in that order. While super-prime activity may no longer be at the same peak as in 2021, the market is still highly active.