Dubai's real estate market has made history by surpassing major global cities as the leading luxury property market. In the first half of 2023, Dubai recorded nearly $850 million (AED 3.1 billion) in sales from high-end residential units priced above $10 million.
The market report highlighted 176 high-end property sales, including a remarkable $111.6 million (AED 410 million) penthouse deal at the Bulgari Lighthouse residence on Jumeirah Bay Island.
The surge in global interest has driven a substantial increase in off-plan sales, accounting for approximately 50% of all property sales during this period, according to the Allsopp & Allsopp H1 2023 market report.
The demand for luxury properties has also led to an average growth of 17% in residential property sales prices across Dubai. The Allsopp & Allsopp agency reported an impressive 55.4% rise in property sales, totaling $48.46 billion (AED 178 billion) in H1 2023 compared to the previous year. New buyer registrations increased by over 84%, with a significant rise in property viewings and sales conversions.
Surprisingly, 57% of new buyers utilized mortgage finance, indicating a robust end-user market in Dubai. Overseas investors have been enticed by Dubai's attractive lifestyle and promising future, especially amidst uncertainties in major global markets.
While luxury branded launches and mega-villa sales gained attention, the broader property market in Dubai demonstrated strong performance in terms of sales and price rise. Approximately 78% of all sales transactions were properties below AED 3 million, with 74% of sales representing apartments.
The market exhibited stability and maturity, with a modest price growth of 4-8% in this segment. Overall, the first half of 2023 set new records, with a total of 61,166 sales transactions, showing a significant increase of 42.3% from the previous year.
The market showcased a balanced split between off-plan (50.1%) and secondary (49.9%) sales transactions, with secondary sales contributing 60% of the total sales value.
Waterfront premium units in Downtown Dubai, Bluewaters, and Dubai Marina experienced notable price increases due to high demand from Russian investors and returning Chinese buyers. Additionally, British and Indian investors favored more affordable apartments in areas like JLT, JVC, and Business Bay.
