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Dubai makes history in 2023 and becomes the world’s leading luxury real estate market, overtaking London, NY and Paris

In the period from January to June, the Dubai real estate market recorded 176 sales of high-end properties worth more than USD 10 million. A recent market report reveals some of the spectacular deals that made headlines.

Dubai set a groundbreaking record in 2023 and dominated the global luxury real estate market. In just six months, USD 850 million was transacted in high-quality residential properties worth over USD 10 million, surpassing major cities such as London, New York and Paris for the first time.

The market recorded an impressive 176 high-end real estate sales during the period, including a stunning $111.6 million deal for a penthouse at the Bulgari Lighthouse residence on Jumeirah Bay Island. This surge in demand has also led to the off-plan sales market accounting for around 50 percent of all real estate sales in Dubai.

The luxury real estate market saw an average growth of 17 percent, resulting in fierce competition with an average of four potential buyers bidding for every property listed. Total sales in the first half of 2023 reached a record-breaking 48.46 billion dollars (AED 178 billion), a significant increase of 55.4 percent compared to the previous year.

Dubai’s appeal goes beyond its glamorous image, as foreign investors are attracted by its lifestyle and future potential. In addition, the current financial and cultural uncertainties in other major markets have prompted investors to choose Dubai for its stability.

While luxury properties made the headlines, the rest of the market also performed well: 78 percent of all sales transactions were under AED 3 million and 74 percent of sales were apartments. A more moderate price growth of 4-8 percent was recorded in this segment, which indicates a mature and stable real estate market in the city.

The report also highlights that a total of 61,166 sales transactions were made in the first half of 2023, representing an impressive 42.3 percent year-on-year increase. The market saw an almost even split between off-plan sales (50.1 percent) and secondary sales (49.9 percent), with secondary sales accounting for 60 percent of total sales value.

Premium apartments with water views in Downtown Dubai, Bluewaters and Dubai Marina recorded a significant price increase of 8-10 percent, driven by demand from Russian and Chinese investors. British and Indian investors, on the other hand, preferred more affordable apartments in areas such as JLT, JVC and Business Bay.

Overall, 2023 was an exceptional year for Dubai’s real estate market, with record-breaking sales, increasing investor interest and a dynamic mix of luxury and affordable properties driving the city’s success.

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