219 ultra-prime homes sold in Dubai in 2022 says Knight Frank
The record-breaking year has the highest $10mn+ villa sales ever recorded
Dubai registered a record 219 ultra-prime home sales in 2022, according to the latest analysis by global property consultant, Knight Frank. The firm says ultra-prime refers to properties with a value exceeding US $10mn.
“The meteoric rise of Dubai’s multi-million-dollar homes market over the course of the last two years has been phenomenal. From just 11 ultra-prime sales in 2010, 2022 has registered 219 deals above the $10mn mark – more than the total recorded between 2010 and 2020,” explained Faisal Durrani, Partner – Head of Middle East Research at Knight Frank.
He continued, “The performance at the top of the market clearly demonstrates the arrival of Dubai as a luxury hub to rival long established markets elsewhere, with no sign to suggest a slowdown in the seemingly relentless demand from global ultra-high-net-worth-individuals zeroing in on the emirate in search of second homes. Indeed, our 2023 Global Attitudes Survey shows that amongst the region’s wealthy, the UAE remains the second most likely target for a home purchase this year, behind the UK.”
In early January 2023, CBRE said that Dubai saw a record total of residential transactions in 2022.
Knight Frank’s research also reveals that the emirate’s prime markets, which include Emirates Hills, Jumeirah Bay Island and The Palm Jumeirah, have collectively registered price growth of 44% during 2022.
Durrani added, “Dubai’s prime residential market has performed in line with our expectations and with average transacted prices standing at around $885 per sqft, it remains one of the world’s most affordable luxury home markets – further boosting the city’s appeal amongst international buyers.”
“The Palm Jumeirah remains the city’s star-performer, with villa prices increasing by 49.4% last year, underpinned by a shortage of new waterfront villa projects in completed communities and the desire by the international elite to secure stand-alone beach front homes. The exceptional demand for homes on Dubai’s Palm Jumeirah is best reflected in the fact that villa prices have risen by 96% since the start of the pandemic, but remain at about $817 per sqft. Prices are however now 34% higher than their 2017 peak,” he remarked.
In mid January 2023, the Select Group awarded $816.7mn in contracts for Dubai projects.
Villas in Mohammed Bin Rashid City (21.6%), Dubai Hills Estate (20.2%) and District One (19.5%) were the other locations that experienced the strongest gains in 2022, the firm observed.
Apartments too in the most sought-after locations have seen significant price rises; Dubai Hills Estate (22.7%) leads the 2022 league table, closely followed by The Palm Jumeirah (19.7%) and Downtown Dubai (13.8%). Apartments in the last two locations are now trading for approximately $600 per sqft, the firm concluded.
Also in mid January 2023, Samana said it would invest $680mn into 12 new projects in 2023.
