Dubai’s property market is buoyant. Driven by its economic recovery from the coronavirus pandemic due to higher oil prices, government policies, and changes to visa rules, sales of prime properties continue to pick up. 

Racking up 219 sales of properties worth $10 million or more last year, Dubai has been ranked as the world’s fourth most active market in the luxury residential segment, slightly behind New York (244), Los Angeles (225), and London (223), according to the 2023 Wealth Report from international real estate consultant Knight Frank. 

It is also the fifth most active city for sales of homes priced above $25 million, with the same three cities plus Hong Kong ranking higher.

“Dubai has arrived. The emirate has taken its place among long-established hub cities as one of the world’s most sought-after luxury residential markets,” said Faisal Durrani, partner and head of Middle East research at Knight Franks Middle East said.

Durrani, however, drew attention to the fact that there is undersupply in Dubai’s luxury housing market.

“Eight new villas are expected in the city’s prime neighborhoods until 2025. But the fact that it is more affordable than its global counterparts also adds to the overall appeal of owning a home in Dubai amongst the world’s elite,” he added.

According to Durrani, $1 million buys 1,130 square feet of space in Dubai’s upscale residential neighborhoods, nearly five times as much as Hong Kong and three times as much as London or Singapore.

“With the strongest prime residential growth rate in the world forecast this year at 13.5%, Dubai’s market still represents outstanding relative value. This value continues to drive UHNWI buyers into our market, most of whom are seeking a sun-sand-sea lifestyle that is now synonymous with Dubai,” said Andrew Cummings, partner and head of prime residential at Knight Frank Middle East.

In 2022, investment was resurgent from the UK, India, and Europe. Cummings added that Chinese investors had bounced back post-pandemic, making Middle East residential investments lucrative.

According to the report, Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island are among Dubai’s most desirable neighborhoods.