Dubai records 'spectacular' post-Covid rebound in luxury home sales valued at more than $10m​​​​​​​​​​​​​​​​​​​​​

The most expensive residential property sold this year was a $30.3 million villa on The Palm Jumeirah

Although there was a large increase in demand for luxury villas towards the end of 2020 and the beginning of 2021, demand is now tapering off slightly with more emphasis on mid-market properties, according to Allsopp & Allsopp. Photo: Chris Whiteoak / The NationalShow less

Record luxury home sales in Dubai are heralding a wider post-coronavirus pandemic recovery for the high-end segment of the global property market.

The emirate, the commercial and tourism centre of the Middle East, is recording a sharp increase in the sale of homes valued at more than $10 million, consultancy Knight Frank said, citing the emirate's return to normal ahead of other cities after a wave of global lockdowns and the UAE's rapid vaccination campaign.

In the first five months of 2021, 22 homes worth more than $10m were sold, the most since 2015 and up from 19 homes in 2020.

"In Dubai, we appear to be in the midst of a spectacular post-Covid rebound in luxury home sales," said Faisal Durrani, head of Middle East research at Knight Frank.

Dubai was one of the first cities to reopen its borders to international tourists in July 2020 as the UAE unveiled one of the world's fastest Covid-19 inoculation drives, stimulating economic activity and the return of overseas visitors.

Most of the transactions in the $10m price bracket were for homes on The Palm Jumeirah, where buyers paid a total of $770m for homes in this price range between January and May, according to Knight Frank.

The most expensive home sold this year was a $30.3m villa on the group of islands developed by Nakheel.

"The uber luxury end of the market is a terrific barometer for general market sentiment," said Mr Durrani.

"Home buyers are clearly oozing with confidence when it comes to the emirate’s uber luxury homes market.”

The sharp increase in Dubai's luxury home market reflects similar patterns in other global cities.

"The rebounding of Dubai’s super prime market echoes a wider global trend, signalling the start perhaps of a ‘Roaring Twenties’ for global real estate," said Mr Durrani.

"Dubai is second only to London, where luxury home sales have also rebounded”.

A view of Dubai's Palm Jumeirah looking towards the Atlantis Hotel. Most of the sales transactions in the $10m price range has been for homes on the Palm Jumeirah, Knight Frank said. Getty

A luxury villa on the Palm Jumeirah. The most expensive home to sell in Dubai this year was a $30.3 million villa in Palm Jumeirah. Jaime Puebla / The National

Emirates Hills is one of Dubai's prime residential villa communities. Between January and May this year, buyers snapped up 22 homes worth more than $10 million, compared to a total of 19 last year, Knight Frank said. Sarah Dea / The National

Sales for homes worth more than $10m so far this year is at the highest level since 2015, Knight Frank said. Courtesy Luxury Property

The luxury home sales surge in Dubai mirrors an emerging trend in global cities, such as London, Knight Frank said. Courtsey Kensington Luxury Real Estate Brokers

$770m worth of luxury homes in Dubai in the $10m price bracket were sold during first five months of 2021. Courtesy of Luxhabitat

The sale of homes priced at more than $10m has risen sharply in Dubai, according to consultancy Knight Frank. Courtesy Better Homes

A surge in luxury home sales in Dubai is due to the UAE's rapid vaccine roll-out programme and Dubai's fast return to normalcy following a wave of global lockdowns. Courtesy Knight Frank

Residential buildings in the Grange Road area of Singapore. The rebounding of Dubai’s super prime market echoes a wider global trend, signalling the start of a ‘Roaring Twenties’ era for global real estate, Knight Frank said. Bloomberg News

Luxury homes in Dubai are more affordable than residential real estate in London, New York, or Singapore, Knight Frank said . AFP

Prime property in the emirate is cheaper than in Singapore, London or New York.

A buyer can snap up a 165-square-metre home in Dubai for $1m, according to Knight Frank. The emirate has 42,356 homes valued at $1m, second only to London, according to the consultancy.

“Investor sentiment has clearly been influenced by the way in which Dubai managed the impact of the pandemic," Mr Durrani said.

"The world’s wealthy have their eyes firmly set on the city."