Dubai first in the world in the luxury real estate market

Ahmed Al-Bashir, Staff Reporter

Dubai has set a new record for itself in 2023, becoming a leader in the global luxury real estate market, with total sales of $850 million (Dhs3.1 billion) involving high-end residential units costing more than $10 million each during the first six months of the year, outperforming London, New York and Paris for the first time, according to the latest market report.

The Dubai market witnessed 176 real estate deals in the high-end residential units sector, valued at more than $10 million, during the period between January and June of 2023, including a huge real estate deal worth $111.6 million (Dhs410 million) for a penthouse apartment in the Bulgari Lighthouse complex on Jumeirah Island.

A recent report issued by the real estate company, Allsopp & Allsopp, said that the increasing global focus on Dubai has also led to a boom in the off-plan sales market, which has led to an increase in its share to about 50 per cent of all real estate sales, during the first half of 2023.

The rise in demand also drove the average residential sales price in Dubai up by 17%, much more than that in the luxury market.

Lewis Allsop, CEO of Allsopp & Allsopp, said: “We did not expect to sell a penthouse apartment worth Dhs 410 million, as Dubai has become the leading global market for luxury real estate in the world for homes that sell for more than $10 million.”

The company's report said that the first six months of 2023 witnessed the real estate market in Dubai reaching record levels, with total sales reaching $48.46 billion (Dhs178 billion).

The report said that in the first half of 2023, records of new buyers at Allsopp & Allsopp increased by more than 84 per cent compared to the same period last year.

Louis Alsop explained that foreign investors were attracted to Dubai, as they were keen at first to experience the lifestyle, and then invest in its real estate market, adding that the current financial situation, as well as the instability in Europe and the United States and many important markets have also increased investors' growing preference for Dubai.