Dubai’s luxury residential market forecast to grow 13.5% in 2023 amid higher demand

Prime values are rising due to the city’s safe-haven status and strong demand from ultra-high-net-worth individuals, Knight Frank says

Dubai’s luxury residential market is projected to record the highest growth rate for any prime market globally, at 13.5 per cent in 2023, driven by a demand-supply imbalance and positive economic growth.

“Prime values are being fuelled by Dubai’s safe-haven status, an exceptionally diverse range of international ultra-high-net-worth people in search of luxury second homes, combined of course with the government’s … response to the pandemic, which has spurred business confidence,” Knight Frank said in a report on Monday.

Adding to the city’s appeal is its relative “affordability”, with prime homes selling for around $800 per square foot, “making Dubai one of the most ‘affordable’ luxury residential markets in the world,” it said.

A limited supply of new property is also expected to support the growth of the luxury property market in the emirate.

Dubai’s luxury home sales hit Dh6 billion ($1.63 billion) in the first quarter of 2023, with wealthy buyers snapping up 88 units valued at more than $10 million as prime property sales continued to pick up amid a wider economic recovery.