According to data shared by consultancy firm Knight Frank, Dubai has sold the highest number of luxurious multimillion-dollar homes in terms of global sale rankings.
Since the COVID-19 pandemic, Dubai has attracted a rising number of high-net-worth individuals (HNWIs). It sold a total of 95 residential properties that were priced at $10 million or higher.
Dubai in the lead
The second quarter of 2023 saw the highest number of homes sold in Dubai, as it managed to outpace about 11 top markets.
These include New York, Hong Kong, London, Palm Beach, Paris, Singapore, Geneva, Sydney, Los Angeles, Orange County and Miami, but not in that order.
Dubai was also leading the charts with a total value of $1.5 billion, but the quarter also saw sales of more than $1 billion recorded in both New York and London.
In the 12 months ending on June 2023, the total number of homes valued at more than $10 million sold in Dubai were about 320, which is the highest in the cities that Knight Frank tracks.
In its report, Knight Frank said that Dubai was leading the pack, but there were healthy volumes also recorded in both New York and London.
Sales in top markets
A total of 422 homes were sold in 12 cities in the second quarter of the year and their combined value was around $7.3 billion.
This meant that the total sales in the 12 months leading to June were of about 1,638 residential units and their combined valuation was just under $30 billion.
It was below the peak recorded in 2021 at $40.7 billion. However, the total volume is still higher than the number recorded before the pandemic in 2019, which is around $18.6 billion.
Even though other markets have seen a decline, Dubai has continued to record rising demand, as the second quarter last year and this year saw an increase of 79%.
Meanwhile, the rise in volumes in other markets were significantly lower with 46% for Sydney, 17% for Paris and 7% for Geneva.
The US recorded the biggest slowdown, particularly Los Angeles, as volumes dropped by nearly 63%. This decline was mostly because of higher interest rates.
According to the report, supply is a major constraint amongst most markets in the near term because there is a lack of new developments starting between 2020 and 2022.
Therefore, delivery in 2024 is going to be lean, which means there is increasing competition for available stock and this is giving pricing a boost.
Even though there has been a slowdown in the market, it continues to be higher than levels seen before the pandemic.
Early this year, another report from Knight Frank had revealed that global HNWIs would spend a whopping $2.5 billion this year on properties in Dubai.
The consultancy had polled about 183 HNWIs and about 22% of them had said that they would invest about $5 million to $10 million in real estate in Dubai, while 8% of them had said that they would spend over $80 million.