Dubai is closing in to become the most sought-after market for luxury residential properties in the world, with high-net-worth buyers snapping up dozens of multimillion-dollar homes that cost at least $10 million last year. 

The emirate registered 219 sales of prime residential properties worth $10 million or more, the fourth highest in the world in 2022, just behind New York, Los Angeles and London, according to global property consultant Knight Frank. The total value of sold high-end properties in Dubai’s prime residential districts, which include The Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, was estimated to be worth $3.8 billion. 

New York landed the first spot with 244 sales worth a total of $4.4 billion, followed by Los Angeles with 225 sales worth $4.34 billion and London, which had 223 sales worth $4.3 billion. 

Dubai is also now the fifth most active city for sales of properties worth $25 million or more, with 26 transactions recorded last year, just behind London, which had 43 deals, New York (43), Los Angeles (39) and Hong Kong (28). 

Faisal Durrani, Partner – Head of Middle East Research, said Dubai has taken its place among long-established “hub cities” as one of the world’s most sought-after market for luxury residential properties. 

“Dubai has arrived … The growing concentration of wealth in the city has been catalysed by the confluence of factors, ranging from the government’s decisive response to the pandemic, to the roll-out of a range of new residency visa options,” Durrani said. 

The fact that Dubai’s luxury residential market remains significantly undersupplied and is more affordable than its global peers is also adding to the city’s overall appeal to big-ticket buyers. 

“$1 million in Dubai’s prime residential precincts translates into approximately 1,130 square feet of space, roughly five times more than Hong Kong and three times more than London or Singapore,” Durrani said. 

“These factors have fueled business and economic confidence and have in turn helped to supercharge demand for luxury homes.” 

Dubai registered the biggest jump in luxury property prices last year at 44.2%, significantly higher than its global counterparts like Aspen, which came second with a 27.6% growth, Riyadh (25%), Tokyo (22.8%) and Miami (21.6%). 

(Reporting by Cleofe Maceda; editing by Seban Scaria)