A recent report by the real estate consulting agency Knight Frank showed that Dubai formed the largest luxury real estate market in the last quarter of 2023, outperforming famous international cities such as London, New York, and Singapore.
In the fourth quarter of last year 2023, the emirate witnessed 108 sales of luxury properties, the price of each exceeding $10 Million, which is an increase from 95 sales in the second quarter, which was the highest during the previous three quarters. In total, there were 411 sales in 12 markets around the world covered in the last three months of last year until December, compared to 370 in the same period in 2022.
Dubai is followed by London and New York with 52 sales each during the fourth quarter. Sales volumes in Hong Kong fell to 15 sales during the same quarter, pushing it out of the top five markets. Sydney ranked fourth and Geneva fifth, with strong activity throughout the same quarter.
Although luxury real estate sales rose in the fourth quarter, which increased 2023’s total sales above 2022, they were still 22% below the levels reached in 2021. However, according to Knight Frank, the total is still well above the pre-pandemic level seen in 2019.
The rise in luxury property sales activity reverses the slowdown in the previous quarter, and reflects a more confident global economic outlook at the end of 2023, with expectations of interest rate cuts in 2024 becoming stronger.
From a year-over-year perspective, annual sales of properties valued at more than $10 million have increased in recent quarters despite the impact of rising interest rates on global housing markets. The share of the Emirate of Dubai was 384 sales out of 1,782 during the 12 months until the end of December 2023, and the global total represents a 1% increase compared to the entire year 2022, but a decrease of 22% from the peak of sales of 2,291 in the entire year 2021.
- Sales value
In the fourth quarter of 2023, the Emirate of Dubai achieved annual sales amounting to $1.81 billion for luxury properties whose price exceeds $10 million, out of total world sales of $7.58 billion. On a full-year basis, the emirate achieved annual sales of this category of real estate at a value of $6.70 billion in 2023.
The total value of luxury real estate sales in the world reached $31.9 billion in the year ending December 2023, and although it is a 22% decrease from the peak of $40.7 billion during the real estate boom in 2021, it is still well above the pre-pandemic level in 2019.
According to Knight Frank, the Dubai market continues to achieve strong sales volumes in the luxury real estate market, and the significant growth in prices over the past two years has led to an increase in luxury real estate prices by more than 100%, which has led to the conversion of many properties from the luxury real estate category to Fancy real estate category.
- Pivotal year
The agency said: 2023 was a pivotal year for global mortgage markets, as interest rates continued to rise in the first half of the year and wealth creation rebounded with asset prices rising on the back of a stock boom fueled by artificial intelligence, which was then supported in the last quarter. Through expectations of lower interest rates.
According to Liam Bailey, global head of Knight Frank Property Research, the year 2024 is likely to be defined by the final pivot to reducing debt costs, which will boost activity in key global super-mortgage markets. He said: Waterfront properties and even inland villas confirm the expansion market.
- List of the top 5 global markets for luxury real estate:
1- Dubai
2- London
3- New York
4- Sydney
5- Geneva