Global rich set to spend $2.5bln on luxury Dubai properties in 2023

Global rich set to spend $2.5bln on luxury Dubai properties in 2023

Dubai, an increasingly favoured destination for the global rich in the post-pandemic era, is poised to attract $2.5 billion this year as high-net-worth-individuals (HNWIs) seek property as an investment asset or as a second home.

According to property consultancy Knight Frank's inaugural edition of Destination Dubai, last year they spent $3.8 billion on homes priced at over $10 million in the emirate.

The consultancy surveyed 183 HNWIs globally, each with a net worth of over $3 million, excluding their main home, or primary residence. Together, this group owns 851 homes around the world and has a combined net worth of $3.2 billion.

The report also highlights the shift in preference from off-plan purchases to recently built/completed homes. Fifty-three percent of HNWI buyers are focusing on acquiring newly constructed homes, rising to 71% amongst HNWIs from East Asia.

Dubai recorded 88 home sales above $10 million, totalling over 6 billion dirhams ($1.6 billion) during Q1 2023, with average transacted prices for such homes reaching AED 7,235 per square feet (psf), representing a 16% increase on 2022’s AED 6,250 psf.

While Dubai’s prime neighbourhoods comprising the Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, accounted for 64% of $10 million+ home sales during Q1, other areas are