New Knight Frank report shows that sales of uber-expensive properties exceeds New York, Hong Kong and London
The volume of super-prime homes sold in Dubai, priced at over US $10mn, totalled $1.59bn during Q3, according to the latest market analysis by global property consultant, Knight Frank.
Faisal Durrani, Partner – Head of Research, Middle East & Africa, explained: “Demand for luxury homes in Dubai remains resilient and supply continues to stubbornly lag demand. The total number of $10mn+ home sales in Dubai for the first nine-months of the year has hit 277, a record high with three-months of the year still left to run. This builds on Dubai’s emergence as the world’s busiest $10mn+ sales market during H1, ranking ahead of New York (125), Hong Kong (109), and London (99).”
The average transacted price for homes that were sold for more than $10mn stood at $1785 per sqft at the end of Q3, according to Knight Frank’s analysis.
City luxury home demand continues to strengthen, attracting both local and international purchasers. Dubai’s prime residential areas are witnessing consistent interest, with The Palm Jumeirah remaining the key focal point for super-prime home sales, accounting for 52.3% of total sales in this exclusive 10mn+ price bracket.
Not to be outdone, however, is Umm Suqeim Three, which is anchored by the Madinat Jumeirah Living development. Average transacted prices here stand at $4,274 per sqft, 62%% higher than its nearest competitor, Business Bay, says Knight Frank.
Durrani continued, “The extraordinary run of price rises in this third market cycle has seen prices escalating for nine consecutive quarters. Dubai’s prime neighbourhoods of the Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island, have been and continue to be the real stars of this cycle, leaving prime values 15.9% higher than this time last year.”
Dubai’s latest freehold residential market cycle remains firmly in its growth phase. Cash purchasers dominate activity, and the buyer pool is still exceptionally diverse. Stock in the prime markets is restricted and demand for luxury beach-front homes, as seen with the recent sell-out of the initial tranche of villas on the Palm Jebel Ali, is likely to sustain rising prices for the foreseeable future.