The emirate’s prime markets, which include Emirates Hills, Jumeirah Bay Island and The Palm Jumeirah, collectively registered a price appreciation of 44 per cent last year, global consultancy Knight Frank said in its latest report on Monday .
“The meteoric rise of Dubai’s multimillion -dollar homes market over the course of the last two years has been phenomenal,” said Faisal Durrani, par tner and head of Middle East Research at Knight Frank.
“From just 11 ultra-prime sales in 2010, 2022 has registered … more than the total recorded between 2010 and 2020.
“The performance at the top of the market clearly demonstrates the arrival of Dubai a s a luxury hub to rival long-established markets elsewhere, with no sign to suggest a slowdown in the seemingly relentless demand from global ultra -high-net-worth-individuals zeroing in on the emirate in search of second homes.”
The UAE remains the second-most likely target — after the UK — for a home purchase this year by the region’s wealthy, Mr Durrani said, citing the consultancy’s 2023 Global Attitudes Survey.
Property prices in the emirate rose across all segments of the market last year amid a wider economic recovery from the coronavirus -induced slowdown.
Business activity in Dubai's non-oil private sector economy remained strong in December .
The emirate's seasonally adjusted S&P Global purchasing managers' index reading edged higher last month to 55.2, from 54.9 in November, firmly above the neutral 50 mark separating expansion from contra ction.
A lack of supply has also driven up prices in the emirate’s ultra -luxury market as the number of new high -end homes planned is not enough to keep up pace with growing demand, Knight Frank said in November.
However, the emirate remains one of the world’s most affordable luxury home markets, which is further boosting the city’s appeal among international buyers, the report said.
Dubai’s prime residential market registered transactions worth Dh30.7 billion ($8.35 billion) in the fourth quarter of 2022, reflecting a volume growth of about 40 per cent from the third quarter, a separate report by Luxhabitat Sotheby’s International Realty found.
