Dubai has made a record in the luxury property market this year with sales of as many as 335 luxury units till July end, making 2023 the most successful year for this segment, a new market study revealed.

Besides, a strong demand for luxury residences and villas are predicted for the remaining months of this year amidst the ongoing post-pandemic global readjustment and the growing global awareness of Dubai’s largely untapped opulent real estate market.

To put this in perspective, only 12 luxury units were sold in Dubai way back in 2014, with most of these units being in Downtown Dubai.

The number shot up to 416 units in 2022, mostly in Business Bay Second and Palm Jumeirah, the study by Realiste, an AI-based proptech venture in Dubai said.

A luxury unit carries a price tag of around $50 million. For instance, a 19,851 sq. ft 4-bedroom ready-to-move-in penthouse unit in Business Bay is currently listed at AED183,625,000 ($50.09 million).

Dubai pips London, Paris, NY in luxury unit sales

According to the study, luxury apartment sales from 2014 till date have mopped up close to AED40 billion ($11 billion).

Dubai pips London, Paris, NY in luxury unit sales

According to Knight Frank’s worldwide index report, Dubai’s real estate had improved by 70.3 percent in September 2022, with the major concentration being on pricey luxurious properties, which were regularly in the top 5 market values.

This is far higher than the index’s rises of 2.5 percent in London, 8.9 percent in Paris and 7.3 percent in New York.

The Realiste study said the surge in demand for expensive real estate in Dubai is driven by several factors.

Dubai’s real estate had improved by 70.3 percent in September 2022, with the major concentration being on pricey luxurious properties, which were regularly in the top 5 market values. Image: LUXHABITAT

“Firstly, there is a huge increase in supply of luxury properties, which creates exclusivity and desirability. Additionally, high-net-worth individuals and investors see luxury real estate as a haven for their wealth and a tangible asset that provides both prestige and potential long-term appreciation,” it said.

Globalisation and the growth of affluent populations worldwide is also seen largely contributing to the increasing demand for luxury properties as a symbol of status and lifestyle.

“With demand exceeding supply, supply will naturally readjust to meet demand and with time, exceed demand,” Alex Galtsev, Founder of Realiste, told Arabian Business.

“This can now be seen with the launch of many luxury projects in Dubai, including Serenia Living, AVA, Bugatti Residences, and Como Residences,” Galtsev said.