In 2023, Dubai achieved a significant milestone by emerging as a global luxury real estate market leader. The latest market report reveals that Dubai surpassed renowned cities such as London, New York, and Paris for the first time. During the first half of the year, the total sales in the high-end residential sector exceeded $850 million (Dhs3.1 billion), with each residential unit priced at over $10 million.
The Dubai market experienced a notable surge in the high-end residential segment, with 176 real estate transactions valued at more than $10 million between January and June 2023. Notably, one of the standout deals was the sale of a penthouse apartment in the Bulgari Lighthouse complex on Jumeirah Island for a remarkable $111.6 million (Dhs410 million).
According to a recent report released by real estate firm Allsopp & Allsopp, Dubai’s growing importance on the global stage has triggered a surge in the off-plan sales sector. This surge has propelled its share to approximately 50 percent of all real estate transactions during the initial half of 2023.
This heightened demand has also propelled the average residential sales prices in Dubai by a significant 17 percent, exceeding the growth in the luxury real estate market.
Allsopp & Allsopp’s CEO, Lewis Allsop, remarked, “The sale of a penthouse apartment valued at Dhs 410 million caught us by surprise, underlining Dubai’s position as the premier global market for luxury real estate, particularly homes exceeding $10 million in value.”
The firm’s report underscores that the first six months of 2023 witnessed unparalleled activity levels in Dubai’s real estate sector, with a total sales volume reaching $48.46 billion (Dhs 178 billion).
Furthermore, the report highlights that during the initial half of 2023, new buyer registrations at Allsopp & Allsopp skyrocketed by over 84 percent compared to the corresponding period in the previous year.
Louis Alsop described how Dubai has become a magnet for foreign investors who are initially drawn to its lifestyle and subsequently choose to invest in its real estate market. He further highlighted that the current financial climate and instability in Europe, the United States, and other significant markets have further amplified investors’ increasing preference for Dubai.