Dubai led 2023 Super-Prime Home Sales Over $10-Million
According to new research from Knight Frank, global super-prime residential sales fell 2.4% year-on-year for Q3 2023 with 362 sales recorded across 12 markets versus 371 transactions from Q3 2022.

Residential sales in several of the world’s mainstream markets have declined by 20% to 30% year-on-year, likely as a result of rising finance costs that have had an adverse impact on affordability and market access.

Though not immune from slowing activity, our latest data confirms that global super-prime markets have proven more resilient. Sales in our 12 markets fell only 2.4% year over year for Quarter 3 this year compared to Quarter 3 last year (362 sales as opposed to 371).

Liam Bailey, Knight Frank’s Global Head of Research noted: “Super-prime activity may have declined since its peak in 2021; however, our latest results demonstrate a market with activity still above prepandemic levels. Higher debt costs will continue to weigh on this sector – but lack of new project launches in London and New York will significantly depress sales during 2024.”

Annualized data shows a similar picture, with sales for the 12-months through September decreasing 4.1% year-on-year compared to full year 2022 results.

Knight Frank reports that superprime sales over the most recent 12-month period totalled at an impressive $31.7 billion – down significantly from their post-pandemic high of $40.7 billion reached post-pandemic in 2021 but still well above their pre-pandemic total of $18.6 billion reached during 2019.

Performance Drivers
The super-prime market is driven primarily by completions. Sales volumes in 2021 were in part buoyed by delayed completions from 2020; indeed some of Knight Frank’s current strength in London, New York and Miami can be attributed to completions from schemes which began prior to the pandemic. As we move through 2024 however, new build sales will become less attractive as their impact fades due to reduced project starts through pandemic-caused delays.

Superprime markets are by their very nature international, and travel volumes through 2023 have contributed to sales growth – with flight volume one indicator showing sales close to 2019 levels once more.

Five markets experienced year-on-year volume gains during Q3, including Hong Kong, Dubai, Geneva, Miami and Sydney.

Dubai remains at the top of Knight Frank’s quarterly sales ranking for Q4, 2022 – holding that place since Q3 2022. London comes second, followed by Hong Kong at third.