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According to a recent market report, Dubais real estate market witnessed an impressive 176 high-end property sales surpassing $10 million during the first half of the year In a groundbreaking achievement in 2023, Dubai emerged as the world’s premier luxury property market, outshining renowned cities like London, New York, and Paris. According to the latest market report, the city generated an impressive sum of approximately $850 million (AED 3.1 billion) from high-end residential units priced at $10 million or above during the first half of the year. Throughout the January-June period, a total of 176 high-end property sales were recorded, including remarkable transactions that made headlines. Notably, one of the headline-grabbing deals was an extraordinary $111.6 million (AED 410 million) sale of a penthouse in the prestigious Bulgari Lighthouse residence on Jumeirah Bay Island. Dubai’s real estate market showcased unparalleled growth and success during this period, firmly establishing its position as the leading destination for luxury property investments worldwide. The growing international attention on Dubai has sparked a remarkable surge in the off-plan sales market, propelling its share to a significant 50% of all property sales during the first half of 2023, as reported by the Allsopp & Allsopp H1 2023 market report. The heightened demand has also resulted in an impressive average growth of 17% in residential property sales prices across Dubai, particularly in the luxury segment, according to the report from Allsopp & Allsopp, recognised as the largest independent real estate agency in the city. Lewis Allsopp, the CEO of Allsopp & Allsopp, expressed surprise at the extraordinary AED 410 million penthouse sale, stating, “Even my crystal ball did not foresee the sale of an AED 410 million penthouse coming, as Dubai became the leading global luxury real estate market in the world for homes sold upwards of $10 million [in H1, 2023].” The heightened demand has led to fierce competition among potential buyers, with an average of four buyers vying for each listed property. This intense competition has driven the average sales price up to AED 3.6 million, representing a notable increase of close to 10% in the past six months. Record-breaking sales in H1 2023 The first six months of 2023 saw the Dubai property market performing at record levels, with sales totalling $48.46 billion (AED178 billion), a sharp rise of 55.4 from H1 2022, Allsopp & Allsopp said. The report said in H1 2023, Allsopp & Allsopp’s new buyer registrations soared over 84% compared to the same year-ago period. The agency also saw its platform generating 49% more property viewings than the previous six months, and converting into 28% more sales over the same period. “As a company, we recorded 57% of new buyers taking advantage of mortgage finance, contrary to the widespread narrative that Dubai operates within a cash-buyer bubble,” Allsopp & Allsopp said. “These data points also show a far healthier end-user market than the headlines will have you believe,” it said. Everyone’s eyes are on Dubai The Allsopp top executive said overseas investors have been drawn to Dubai, initially eager to experience the lifestyle, and once here, have been seduced into investing in its future. The current financial – and also the cultural instability – being witnessed across Europe, the US, and many significant markets also added to surging investor preference for Dubai, he added. The report said while the luxury branded launches and mega-villa sales grabbed headlines in the first half, the rest of the market also put up a decent performance in terms of sales and price rise. “This segment saw about 78% of all sales transactions under AED3 million, with 74% of all sales being apartments,” it said. This segment, however, saw only a modest price growth – 4-8%– reflecting a maturing and stable real estate market in the city, the report said. 2023 first half breaks several records The Allsopp & Allsopp report said the first six months of 2023 saw the Dubai property market performing at record levels, clocking as many as 61,166 total sales transactions, up by 42.3% from the previous year. “We continue to see an even split between off-plan (50.1%) and secondary (49.9%) sales transactions. However, secondary sales contributed a larger slice (60%) of the total sales in value terms, helped by prices of readily available properties increasing at an average rate of 17% during the first six months of the year,” the report said. Apartment sales accounted for 74% of all Dubai property transactions. “In the first six months of the year, premium units with water views in Downtown Dubai, Bluewaters, and Dubai Marina experienced significant price increases – 8-10%t – as we saw increased demand for these units coming from Russian investors and recently returning Chinese buyers,” Allsopp & Allsopp said. British and Indian investors in the same segment, however, opted for more affordable apartments in areas such as JLT, JVC and Business Bay. “Our company has experienced its busiest year yet in 2023, with our teams shattering many long-standing company records and personal bests, with contributions from individual agents and company teams helping us complete more sales and lettings transactions for our clients than ever before,” the premier real estate agency said. |
