USD 10 million-dollar home sales boom in Dubai could signal start of new ‘Roaring Twenties’

22 USD 10-million homes sold between January and May 2021 AED 2.8b (USD 770m) worth of homes sold in this price bracket during first five months of 2021 Luxury home sales surge in Dubai mirrors emerging trend in global cities, such as London
Written By:
Faisal Durrani, Knight Frank
2 minutes to read

The sale of homes priced at over USD 10 million has risen sharply in Dubai.

The uber luxury end of the market is a terrific barometer for general market sentiment. And in Dubai, we appear to be in the midst of a spectacular post-Covid rebound in luxury home sales. There have been 22 sales of homes worth more than USD 10 million between January and May, compared to a total of 19 last year.

Even if we step back to the period before the pandemic, the number of home sales in this price bracket so far this year is at the highest level since 2015. Home buyers are clearly oozing with confidence when it comes to the emirate’s uber luxury homes market.

The spike in sales is linked to the decisive way in which the emirate responded to the pandemic; a world leading vaccine roll-out programme in the UAE and the fact that Dubai was one of the first cities in the world to begin a path to normalisation following the wave of global lockdowns.

Investor sentiment has clearly been influenced by the way in which Dubai managed the impact of the pandemic. The world’s wealthy have their eyes firmly set on the city, where a million dollars gets you five times more residential real estate than London, New York, or Singapore – which means accessing a luxury lifestyle is relatively more affordable.

Most of the transactions in the USD 10-million dollar range has been for homes on the Palm Jumeirah, where the most expensive home to sell this year was a USD 30.3 million (AED 111 million) villa.

The rebounding of Dubai’s super prime market echoes a wider global trend, signalling the start perhaps of a ‘Roaring Twenties’ for global real estate. With over 42,000 million-dollar homes, Dubai is second only to London, where luxury home sales have also rebounded.

Dubai is the epitome of lifestyle living, and the surge in interest at the current time reinforces its appeal with those looking for well designed, luxury homes with a beachfront location. The overriding sentiment in the prime sector is certainly one of positivity, with global buyers continuing to see the appeal of Dubai for real estate investment.

We have witnessed high levels of transactional activity recently in the prime marketplace, with the appeal of Palm Jumeirah as an example, still more popular than ever. In addition to the obvious advantages of its year-round sunshine and climate, our clients also welcome being in one of the most safe cities in the world where families can relax and enjoy the benefits that come from living in Dubai.

Photo by Aldo Loya on Unsplash