Dubai's luxury real estate market to boom in the third quarter of 2023

Investments of $1.59 billion in luxury real estate

In the third quarter of 2023, investors in luxury real estate in Dubai spent a considerable amount, around $1.59 billion, to acquire properties worth $10 million or more.

Annual expenditure reaches $4.91 billion

According to data provided by Knight Frank, total spending on super high-end properties during 2023 reached an impressive $4.91 billion, with the sale of 277 luxury properties.

Dubai leads the luxury real estate market

Dubai brilliantly outperformed other global metropolises such as New York, Hong Kong and London in the first half of the year to become the most dynamic luxury real estate market.

Average price per square foot AED 6,557

At the end of the third quarter, the average price per square foot for high-value properties in Dubai was 6,557 Emirati Dirhams (AED). The Palm Jumeirah region accounted for more than half, or 52.3%, of sales in the $10 million and above price bracket.

Umm Suqeim Third: A destination of choice

Umm Suqeim Third, which includes the Madinat Jumeirah Living development, stands out with average prices reaching AED 15,700 per square foot, a 62% increase on its nearest competitor, Business Bay.

Upward price trend

Property prices have been rising steadily for nine consecutive quarters in Dubai’s real estate market. Prime districts such as Palm Jumeirah, Emirates Hills and Jumeirah Bay Island saw prime real estate values increase by 15.9% year-on-year.

Predominance of cash purchases

Dubai’s real estate market is still dominated by cash buyers. With a limited supply of prime real estate, demand for luxury properties, particularly those by the sea, remains high. This is reflected in the rapid sale of the first tranches of villas on the Palm Jebel Ali.

These data underline Dubai’s continued appeal as a popular destination for luxury real estate investment, with robust demand, rising property values and sustained competition.