Dubai's luxury residential market saw an impressive momentum in the third quarter, driven by sales activity at Palm Jumeirah, which accounted for 31.2% of all sales exceeding AED 36 million. According to Knight Frank's recent analysis, there was an 8.2% quarter-on-quarter rise in high-end property transactions, with 92 sales of more than AED 36 million and an average sale price of AED 56 million.
Faisal Durrani, Partner and Head of Research for MENA at Knight Frank, paid attention to the steady demand for ultra-luxury properties despite a shortage of listings. There was a nearly 51% drop in homes listed at AED 36 million or above in the first nine months of 2024 compared to the same timeframe in 2023. However, sales numbers in this segment continued to rise, with the ratio of sales to listings climbing to 17.1% this year from 10.7% in 2023. This indicates ongoing high interest among wealthy buyers in Dubai's most exclusive properties.
The supply of ultra-luxury properties has dwindled significantly, with listings dropping from 3,316 during Q1-Q3 of 2023 to just 1,622 in 2024. This trend suggests a preference among buyers for holding onto luxury properties rather than reintroducing them to the market, reinforcing a "buy-to-hold" or "buy-to-live" approach.
The Palm Jumeirah remained the leading area for luxury home transactions, with 19 deals amounting to over AED 1.2 billion during Q3 2024. Dubai Silicon Oasis and Dubai Hills Estate followed as outstanding locations, contributing 25.4% and 12.1%, respectively, of the total AED 36 million-plus sales value.
Dubai Silicon Oasis has gained traction in the luxury segment largely due to significant sales at Binghatti Crystals Residences. Commenting on the appeal of Palm Jumeirah, Petri Mannila, Partner and Head of Prime Residential UAE, highlighted its ongoing status as a preferred choice among Dubai's elite and high-net-worth individuals worldwide. Mannila also noted that the value presented by properties in this location, with an average price of AED 7522.37 per sq.ft. for homes exceeding AED 36 million, adds to its attractiveness.
With limited development space left on Palm Jumeirah, new projects like the Palm Jebel Ali and Dubai Islands are beginning to gain prominence in the luxury housing market, with Knight Frank suggesting they may soon join other high-value residential areas such as Tilal Al Ghaf, Jumeirah Golf Estates, Al Barari, and Blue Waters.
Palm Jebel Ali registered nine transactions over AED 36 million, totalling AED 350 million-plus in Q3, which brings the cumulative value for this location to more than AED 4 billion in 2024, making up 24.4% of the city’s luxury home sales value for the year so far.
Globally, Dubai retained its top position for high-value home sales in Q2 2024, outpacing cities like New York and Hong Kong. In the 12 months ending in June 2024, Dubai's tally of 436 home sales at AED 36 million or above nearly equalled the combined figures of New York and London.
Original article reference: Construction Business News.
