Dubai is the leader in the sale of luxury houses in the second quarter of this year

(quoted from Ferraro)

Globally, the luxury real estate boom has suffered as higher interest rates that have increased borrowing costs have taken their toll. However, Dubai saw an increase in sales of $10 million homes and recorded the highest global sales volume in the market at $1.5 billion in the second quarter of this year.According to Al-Monitor's report, in a survey conducted by the real estate consulting company Knight Frank using data from 12 key international markets, sales of residential properties worth more than 10 million dollars in the second quarter from April to June 2023 compared to the period It decreased by 13% compared to last year.The total number of luxury residential sales in the surveyed markets fell slightly to less than $30 billion in the 12 months to June, falling by about a quarter to $40.7 billion in 2021. Of course, this year's figures are still much higher than sales in the pre-Covid pandemic period, which reached $18.6 billion in 2019, although after 11 interest rate hikes so far and with the federal policy rate between 5.25 and 5.5 percent, the luxury real estate market is burdened by It feels the interest rate increase.Dubai was one of four markets that saw overall high-end residential property sales grow by 79 percent between Q2 2022 and Q2 2023. After Dubai, Sydney with 46%, Paris with 17% and Geneva with 7% are ranked next in terms of sales of luxury homes. Also, in the second quarter, it took the lead in the global market with 1.582 billion dollars in the sale of 95 properties and the total annual sale of 320 properties with a volume of 5.834 billion dollars. New York followed with $1.142 billion from 67 sales in the second quarter, followed by London with $1.034 billion and 54 sales and Hong Kong with $834 million from 42 sales. There were a total of 422 sales during the quarter in the surveyed cities.Due to the influx of global wealth that has poured into this global city in recent years, Dubai was able to register this great leap in its name in the leadership position of the luxury real estate market. Samuel Wendell, senior market research analyst at Al-Monitor, points out that the United Arab Emirates, along with Dubai, is a luxury safe haven for wealthy expatriates and investors who are considered undesirable in many jurisdictions. It has been known from cryptocurrency millionaires to wealthy Russians fleeing Western sanctions.The United Arab Emirates, along with other Persian Gulf countries, maintained their economic growth above the global average in 2022. This situation was made possible for the UAE by creating a more welcoming environment for luxury home buyers in addition to energy exports.The UAE had the highest net millionaire inflow in the world last year as the number of residents with a net worth of $1 million or more increased by 5,200, according to Henley's Private Immigration 2023 report. In contrast, China saw the largest decline in the total number of millionaires, followed by the UK and then Russia.Looking ahead to the future of luxury home sales, Liam Bailey, head of global research at Knight Frank, predicts global trade volume will be even lower next year as the luxury real estate market pulls back from recent highs. "The biggest constraint in most markets in the short term is supply," says Bailey in the Knight Frank report. "The lack of new development starts between 2020 and 2022 means 2024 will be a lean year for new home deliveries. Increased competition for available stock indicates that it must act to lower the price floor for pricing purposes."