Page 482 - SOBHA REALTY QUARTERLY PR REPORT - JANUARY-MARCH 2024 (ENGLISH )

comes in third place with the Algarve and Cape Town (both 12.3per cent) completing
the top five.

PNC Menon, chairman and founder of Sobha Realty, said the UAE’s luxury real estate
market would remain robust in 2024 due to the sustained demand for prime properties
driven by a growing influx of foreign investors. “In particular, Dubai, ranked among the
world’s most affordable luxury markets, has been able to better position itself as the
destination of choice for high net worth buyers and business investors thanks to the
diversity of prime properties available for purchase.”

He noted that the luxury real estate industry is modifying its strategy in response to the
shifting economic environment by focusing on technological integration, immersive
virtual experiences, and sustainable practices. “Smart houses, eco-friendly architecture,
and wellness-focused amenities are becoming increasingly popular in response to the
evolving needs and values of luxury property buyers,” said Menon.

According to Knight Frank, prime residential values in neighbourhoods including the
Palm Jumeirah, Emirates Hills and Jumeirah Bay Island have experienced record
growth during 2023, albeit this has been from a low base.

Faisal Durrani, partner and head of Research, Knight Frank Mena, said the total number
of prime homes available for sale declined by 38.5 per cent in Dubai during 2023,
echoing the 52 per cent decrease in sales inventory in Dubai’s Burj Khalifa over the
same period. “Owners are clearly deciding to hold on to their homes for longer, with
inventory levels falling sharply, signalling the longer-term residency mindset now
bedding in amongst the increasingly dominant buy-to-hold purchasers. Unsurprisingly,
this behaviour has helped to sustain price growth in the emirate’s prime market, which
registered the second fastest rate of growth globally in 2023 at 15.9 per cent”

“The accolades for Dubai’s prime market are piled high following the city’s record-
breaking 431 $ 10 million+ home sales, including an all-time high of 56 properties
trading for over $25 million last year. Despite the record-breaking sales of luxury homes,

Dubai ranks towards the bottom end of the most expensive prime markets globally,”
Durrani said.

“Indeed, in our global tracker of 15 prime residential markets around the world, $ 1
million secures 979 square feet of residential space in Dubai, three-times more than
London, New York, or Singapore and about 806 square feet more than first-placed

https://www.khaleejtimes.com/business/dubai-prime-property-sector-to-see-robust-price-surge-
in-2024