Dubai has achieved a historic milestone by outperforming London, New York, and Paris to become the leading luxury property market globally. The latest market report revealed that in the first half of 2023, Dubai generated close to $850 million (AED3.1 billion) from high-end residential units priced above $10 million.
During this period, the real estate market in Dubai witnessed 176 high-end property sales, including a headline grabbing $111.6 million (AED 410 million) penthouse deal at the Bulgari Lighthouse residence on Jumeirah Bay Island.
The global attention on Dubai has led to a surge in the off-plan sales market, comprising approximately 50% of all property sales in the first half of 2023, according to the Allsopp & Allsopp H1 2023 market report.
Driven by the increased demand, residential property sales prices across Dubai experienced an average growth of 17%, with even higher increases seen in the luxury segment. Moreover, Allsopp & Allsopp, the city’s largest independent real estate agency, reported a remarkable 55.4% rise in property sales, totaling $48.46 billion (AED178 billion) in the first half of 2023, compared to the same period the previous year. The agency witnessed a surge in new buyer registrations, up by over 84% year-on-year, with 49% more property viewings and 28% more sales conversions.
Contrary to common belief, the report revealed that 57% of new buyers utilized mortgage finance, indicating a healthier end-user market in Dubai. Overseas investors have been captivated by Dubai’s appealing lifestyle and have been enticed to invest in its promising future, especially given the financial and cultural instabilities in major global markets.
While luxury branded launches and mega-villa sales made headlines, the broader property market in Dubai also exhibited strong performance in terms of sales and price rise. About 78% of all sales transactions were properties below AED3 million, with 74% of sales representing apartments.
The report emphasized the market’s stability and maturity, with a modest price growth of 4-8% in this segment. Overall, the first half of 2023 set several records, with a total of 61,166 sales transactions, a significant increase of 42.3% from the previous year.
The market demonstrated a balanced split between off-plan (50.1%) and secondary (49.9%) sales transactions, with secondary sales contributing 60% of the total sales value.
Waterfront premium units in Downtown Dubai, Bluewaters, and Dubai Marina experienced notable price increases due to high demand from Russian investors and returning Chinese buyers. Moreover, British and Indian investors opted for more affordable apartments in areas such as JLT, JVC, and Business Bay.
