(MENAFN) Dubai's luxury real estate market is experiencing a continued surge in sales, with a total of Dh6 billion ($1.63 billion) in sales in the first quarter of 2023. This growth is driven by wealthy buyers who have been snapping up 88 units valued at more than $10 million in prime property sales. The uptick in sales is a clear indication of the wider economic recovery in the region, with the emirate's prime residential markets of Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island leading the way.
According to a report by global consultancy Knight Frank, these high-demand areas accounted for 64% of luxury home sales during the three-month period. Average transaction prices in these locations reached Dh8,800 per square foot, a significant increase compared to 2022 figures. The report also revealed that the depth of demand for homes at this price point among local and international ultra-high-net-worth individuals is helping to drive up prices in this exclusive segment of the market.
The surge in sales is particularly notable given that Dubai is still dealing with the economic impact of the pandemic. However, the emirate's finance and tourism hub is showing remarkable resilience, and the continued growth of its luxury real estate market is a clear indicator of its strength. According to Faisal Durrani, partner and head of Middle East Research at Knight Frank, the average transaction prices for prime properties across the city in the first quarter was Dh7,235 per square foot - a 16% increase from the Dh6,250 per square foot recorded in 2022.
The increase in sales and prices is not only a reflection of the strength of Dubai's luxury real estate market but also the increasing demand for high-end properties in the Middle East. The region has become a hub for ultra-high-net-worth individuals, with Dubai being one of the most popular destinations for property investment. The city's strategic location, world-class infrastructure, and favorable tax policies make it an attractive option for investors seeking to diversify their portfolios.
In conclusion, Dubai's luxury real estate market is continuing to thrive in 2023, with sales reaching new heights and prices increasing significantly. The emirate's prime residential markets are leading the way, attracting local and international ultra-high-net-worth individuals who are driving up the prices in this exclusive segment of the market. Despite the ongoing economic challenges, Dubai's strength as a finance and tourism hub is evident, and it remains one of the most attractive destinations for property investment in the Middle East.
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