Dubai: World’s Fourth Most Active Luxury Residential Market
Dubai has been ranked as the world’s fourth most active market in the luxury residential segment as sales of prime properties continued to pick up amid a wider economic recovery.
- The emirate, the commercial and tourism hub of the Middle East, recorded the sale of 219 homes priced above $10 million last year, with the total value of the transactions reaching $3.8 billion.
- Dubai ranks behind New York (244 sales), Los Angeles (225 sales) and London (223 sales).
- It is also the fifth most active city for sales of homes price above $25 million, with the same three cities plus Hong Kong ranking higher.
- The emirate has taken its place among long-established hub cities as one of the world’s most sought-after luxury residential markets.
- The growing concentration of wealth in the city has been catalysed by a confluence of factors, ranging from the government’s decisive response to the pandemic to the roll-out of a range of new residency visa options.
- Dubai’s luxury residential market “remains significantly undersupplied, with just eight new villas expected in the city’s prime neighbourhoods until 2025.
Dubai’s economy expanded by 4.6% on an annual basis in the first nine months of 2022, with wholesale and retail trade accounting for 24.1% of its gross domestic product, according to the Dubai Statistics Centre.
Transactions: The market recorded 90,881 transactions last year, exceeding the previous high of 81,182 in 2009, property consultancy CBRE.
Growth Rate: With the strongest prime residential growth rate in the world forecast this year at 13.5%, Dubai’s market still represents outstanding relative value.