Wednesday, June 19, 2024

Dubai Makes History in 2023 to become World’s Leading Luxury Property Market, Outpacing London, New York and Paris

Dubai achieved a historic milestone in 2023 by emerging as the world’s top luxury property market, surpassing London, New York, and Paris.

According to a recent market report, the city generated nearly $850 million (AED3.1 billion) in the first six months of the year from high-end properties. Notably, there were 176 high-end property sales during this period. It includes a $111.6 million (AED410 million) deal for a penthouse in the Bulgari Lighthouse residence on Jumeirah Bay Island.

As reported by Allsopp & Allsopp, the market’s popularity led to a surge in off-plan sales. It accounted for about 50% of all property sales in the first half of 2023.

The surge in demand also caused residential property prices across Dubai to grow by an average of 17%. Moreover, the luxury end of the market experienced even higher growth.

Lewis Allsopp, CEO of Allsopp & Allsopp, expressed surprise at the market’s success, as he had not anticipated the AED410 million penthouse sale. He noted that the competition among buyers resulted in an average sales price of AED3.6 million. It shows a significant increase of nearly 10% in the past six months.

During the first half of 2023, the Dubai property market performed exceptionally well. It recorded a total of $48.46 billion (AED178 billion) in sales, marking an increase of 55.4% compared to H1 2022.

Furthermore, overseas investors have been drawn to Dubai’s lifestyle. They have increasingly invested in its future, especially due to financial and cultural instability in Europe, the US, and other major markets.

The Dubai property market showcased impressive performance during the first half of 2023. Notably, about 78% of all sales transactions were for properties below AED3 million, with apartments accounting for a substantial 74% of total transactions, indicating a stable and mature real estate market.

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