Dubai’s luxury property market has set a new benchmark in 2024, recording the highest-ever number of home sales exceeding US$ 10 million. According to an analysis by Knight Frank, the city registered 435 transactions in this segment, surpassing the previous high of 434 sales in 2023. This milestone reinforces Dubai’s standing as a global leader in high-end real estate.
A significant factor in this achievement was the surge in Q4 sales, with 153 deals taking place - the strongest quarterly performance to date for properties in this category.
Faisal Durrani, Partner and Head of Research for MENA at Knight Frank, commented, “Despite macroeconomic headwinds, Dubai’s attractiveness as a hub for international wealth continues to grow, with developers struggling to match the pace of demand for ultra-luxury residences.
The magnetic attraction of the city is also reflected in the fact that Dubai’s population has crossed the 3.8 million mark, up by around 170,000, or 4.6%, during 2024 alone, which continues to create new demand for housing at all price points. Indeed, last year, house prices rose by 19.1%, leaving them 13.1% above the 2014 peak. It’s villas though where the attention of the global super-rich remains focussed, with values rising by 20.2% last year, reflecting a 99.8% uplift on Q1 2020 levels”.
Demand for Ultra-Luxury Homes
Palm Jumeirah remains the focal point for high-value sales, securing 127 transactions in 2024, representing nearly 29% of all deals in this price range. The total value of sales on the island reached approximately US$ 2.3 billion, accounting for a substantial share of the overall luxury property market.
Palm Jebel Ali has also seen increased investor interest, ranking second in terms of transaction volume with 36 deals. The rising appeal of this waterfront destination underscores the continued demand for premium coastal properties, with the first handovers expected in 2027.
Emirates Hills followed closely, recording US$ 514.5 million in transactions, representing 7.3% of the market. Other sought-after locations include Jumeirah Bay Island, District One, and Dubai Hills Estate, contributing 6.7%, 6.6%, and 6.2% of sales, respectively.
Villas dominated the ultra-luxury segment, comprising 68.5% of transactions, a noticeable jump from previous years. This growth reflects Dubai’s increasing appeal to high-net-worth buyers looking for expansive, private residences.
Petri Mannila, Partner and Head of Prime Residential at Knight Frank, remarked, “Dubai has emerged as the world’s leading market for luxury home sales, an enviable position given the relatively young age of the market. The explosive arrival of the city on the luxury homes market stage coincides with an influx of ultra rich residents who are relocating to the emirate with their families and businesses.”
Surge in Off-Plan Investments
In 2024, off-plan sales accounted for 52% of luxury transactions, with leading developers OMNIYAT, Nakheel Properties, and Emaar Properties securing a combined 46% of these deals. Their respective shares stood at 19%, 16%, and 11%.
Among the standout developments, Emaar’s The Oasis - Lavita, located near Jumeirah Golf Estates, emerged as a preferred choice for luxury buyers. Since launching in Q3 2024, 29 out of 43 villas in this project have already been sold for more than US$ 10 million.
Prime Residential Market Performance
Dubai’s prime residential sector, encompassing Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands, and Emirates Hills, has also seen continued growth. During Q4 2024, average transaction prices in these high-end neighbourhoods reached AED 6,626 per square foot, marking a 6% annual increase.
Palm Jumeirah led the way, accounting for two-thirds of prime market transactions with 105 sales. The average price per square foot on the island climbed to AED 7,305, reflecting a 15% rise from the previous year.
Mannila also added that the Sales activity in the ultra-luxury segment continues to thrive, despite a steady decline in available stock. Since mid-2023, the supply of high-end residences has been tightening, as developers work to keep pace with the growing demand from both local and international investors.
Although the number of high-end listings showed signs of recovery in Q3 2024, the total count of properties priced above US$ 10 million remained 14% lower than in Q4 2023. Overall, the availability of such homes dropped by 40% last year, with 2,490 properties listed, compared to 4,120 in 2023.
Dubai’s luxury property sector continues to be a focal point for global investors, with strong demand driving prices upward and further cementing the city’s reputation as a premier destination for high-end real estate acquisitions.
Original article reference: Emirates 24/7.
