DUBAI Sales of homes worth $10 million or more in Dubai hit about $1.6 billion in the third quarter, according to an industry report published on Wednesday, up from $1.13 billion in the same period a year ago.

The total value of sales stood at almost $5 billion between January and September this year, property consultancy Knight Frank said in a statement.

Dubai is racing to attract people and capital to drive long-term growth as part of an economic model focused on property investment, tourism and inflows of foreign capital.

Property is booming - helped by Russian demand amid THE war in Ukraine and laxer residency rules - and analysts this time see more guard rails in place against a repeat of the problems that subdued Dubai after the 2008 global credit crunch.

"Demand for luxury homes in Dubai remains resilient and supply continues to stubbornly lag demand," said Faisal Durrani, partner and head of research for Middle East and Africa at Knight Frank.

The total number of sales of homes worth more than $10 million in the nine month period to September hit a record high of 277 in Dubai, building on its status as the top market for such deals in the first half, ahead of New York, Hong Kong and London, Knight Frank said.

Activity is dominated by cash buyers, the consultancy said.

(Reporting by Rachna Uppal, Editing by Louise Heavens)