Dubai has become a top choice for luxury real estate transactions worth more than $10 million—amounting to an impressive $1.66 billion in just the first quarter of 2023.
Since 2019, Dubai has become a go-to place for purchasing high-end properties. However, the Gulf Tiger of the United Arab Emirates (UAE) is setting a new record this year. It outranked competitors in just the first quarter of 2023 when it gained a total of 88 real estate transactions for homes that cost over $10 million.
These numbers were based on data collected by real estate consultancy, Knight Frank. The organization also shared that a third of the luxury homes sold in Dubai were located in Palm Jumeirah, which is reclaimed land just off the coast of the city. More inland properties will soon be gaining prime status as well, as per a report from Bloomberg.
Ahead of the Game
For perspective, Dubai outperformed Hong Kong this first quarter when it came to luxury real estate deals. That said, the Fragrant Harbor also experienced a steady rise in sales during this period, with 67 transactions that totaled $988 million, according to Knight Frank’s research.
Meanwhile, New York came in third place with 58 deals worth $942 million. Last year, London claimed first place with 246 transactions that amounted to $4.7 billion, according to Financial Times. However, the UK city slipped down to sixth place after 2023’s first quarter with only 36 deals thus far.
Epicenter of Wealth
“Dubai’s luxury homes market continues to attract the attention of the world’s wealthy,” explained Faisal Durrani, Knight Frank’s head of Middle East Research, to Financial Times.
Experts suspect that the primary reason behind this was the UAE’s efficient management of the COVID-19 pandemic. Another cause was likely the government’s efforts to attract long-term expatriates, especially amid the conflict between Ukraine and Russia. The UAE continues to remain neutral in light of its close ties with both the United States and Russia.
As such, many of the wealthy who’ve purchased property in Dubai hail from Russia, according to Bloomberg. However, buyers from China are also bolstering demand within the market.
Another report from Henley & Partners has revealed that around 5,200 high-net-worth individuals flocked to Dubai last year with an investable wealth of at least $1 million. Meanwhile, 2,400 of these individuals left Hong Kong in the very same year.
However, the Fragrant Harbor is expected to catch up to Dubai with the launch of its Top Talent Pass Scheme, according to the South China Morning Post. The project aims to attract highly-skilled professionals and high-net-worth families through incentives, according to Ho-Pin Tung, the director of Knight Frank Hong Kong.
Banner photo via Instagram @dubai.