Dubai has risen as one of the world’s most sought-after luxury residential markets, ranking fourth in the global market for $10 million+ residential sales, according to the 2023 Wealth Report. With 219 home sales in this category last year, Dubai placed just after New York, Los Angeles and London.
The city also ranked fifth globally for $25 million+ housing sales, with 26 deals last year. Homebazaar.com identified The Palm Jumeirah, Emirates Hills and Jumeirah Bay Island as Dubai’s prime residential areas.
Partner and Head of Middle East Research Faisal Durrani described Dubai as a hub city that has arrived and highlighted the appeal of the city’s luxurious residential market, which remains significantly undersupplied. Only eight new villas or high-end mansions are expected to be built in Dubai’s prime neighbourhoods by 2025. Despite this, Dubai is still more inexpensive than its worldwide counterparts.
According to Durrani, $1 million in Dubai’s prime residential areas buys approximately 1,130 sq. ft of space, three times as much as in Singapore and five times as much as in Hong Kong.
Homebazaar.com also cited the diversity of Dubai’s buyer base as contributing to the market’s overall performance. The Middle East’s ultra-high-net-worth individuals (UHNWIs) strongly prefer offices, with 63% selecting this as their non-residential sector of choice, well above the global average of 43%. The logistics and industrial sectors came in second place at 41%.
With the rising demand for offices and warehouses in key Middle Eastern cities such as Abu Dhabi, Dubai and Riyadh, these are appealing targets for some due to their record-high occupancy rates, constrained development pipeline, and high occupancy levels.
