Skip to main content

Thousands of homeowners in Dubai have become “accidental millionaires.” A recent analysis by global real estate consultancy Knight Frank reveals that nearly one in five homes in the city is now valued at over $1 million.

Knight Frank has been monitoring property prices over time. They’ve noticed that homeowners who bought properties for under $1 million are now seeing their investments grow in value due to serious price inflation.

According to a report from property consultancy Knight Frank on Tuesday, Dubai’s prime residential market, which includes places like The Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills, experienced a price increase of over 26 percent last year.

In the first three months of the year, there were 105 recorded sales of homes that sold for over $10 million. That’s a 19 per cent increase compared to the same time last year. Palm Jumeirah made up a little more than a third of the transactions this quarter.

“So, after a solid 16.3 per cent growth in 2023 and an impressive 44.4 per cent jump in 2022, Dubai’s prime residential market has seen a 26.3 per cent increase over the past year. This really positions it as one of the fastest-growing prime residential markets in the world,” shared Faisal Durrani, who is a partner and heads up Middle East research at Knight Frank.

In the first quarter, the total value of luxury homes sold in Dubai reached $1.73 billion, a 6 per cent increase from the same period last year in 2023. The market for luxury homes in the Emirates now holds its global leadership position.

The January Knight Frank report shows that Dubai’s luxury real estate market set records in 2023. Home sales in this bracket increased by 100 percent during the year to $7.6 billion, surpassing New York and London combined in value.

Dubai’s foreign investor appeal comes from its worldwide connections plus favourable market terms for overseas residents buying homes.

According to Mr. Durrani, the strong interest in luxury living spaces has decreased the number of homes available for purchase.

“The deal activity in Dubai is really picking up, especially at the high end of the market. There’s this ongoing flow of international high-net-worth individuals competing for the city’s priciest homes,” he said.

You can really see how the global wealthy are zeroing in on Dubai, especially when you look at the sharp drop in the number of homes priced over $10 million. In just the past year, that number has plummeted by 59 per cent, leaving only 864 homes on the market.

Mr Durrani mentioned that even with the rising prices, Dubai’s luxury homes market is still considered one of the most affordable globally.

Omar Al-Farsi

Typically replies within few minutes