Dubai is driving a rebound in luxury real estate sales.
There were 88 homes sold for more than $10 million in the city during the first quarter, compared with 67 in Hong Kong and 58 in New York, according to a report from the real estate company Knight Frank, which tracks purchases in 12 markets. That pushed the global total to 417 properties, the most since the second quarter of 2022.
Dubai’s market has surged amid an influx of foreign wealth. It now accounts for about 17% of global luxury real estate sales, up from 2% in 2019, according to Knight Frank. London ranked second in the 12 months through March at 14%. Overall, the global market picked up after a few months of slowing activity due to higher interest rates and geopolitical risks, according to the report.
“The role of Dubai in supporting the global super-prime market cannot be overstated,” said Liam Bailey, the company’s global head of research. “Dubai’s sales boom has helped propel prime prices higher since the beginning of 2020, well ahead of the numbers seen in comparable markets.
Overall, global luxury sales were up 11% in the first quarter compared with the prior three months. But despite the increase in the volume of sales, the value of properties purchased slipped 4% to $7.2 billion.
Knight Frank estimated that luxury purchases will total as much as $27 billion this year, down from $33 billion in 2022.
Source from: Bloomberg