In the last year, the number of luxury residences available for sale in Dubai has decreased by over half, primarily due to the extraordinary demand from high-net-worth individuals.
According to the data released by global real estate consultancy Knight Frank, the number of properties has fallen by 47% to 2,851 in high-end communities such as Palm Jumeirah, Emirates Hills, and Jumeirah Bay Islands.
This new data shows that buyers are either end-users who want to use it for personal use or investors who are holding onto their assets, expecting prices to rise further in the coming years.
Luxury Home Sales in the First Half of 2024
In the first half of 2024, Dubai had 190 home sales with a combined value of more than $10 million, nearly matching the 189 records set in the previous year’s first half. Similarly, the need for uber-luxury properties valued at $25 million-plus remained strong as 15 homes were sold during Q2, taking the calculation to 21 for the first half of 2024.
Check the details below:
Location | Number of homes sold |
Palm Jumeirah | 60 |
Palm Jebel Ali | 14 |
Business Bay | 12 |
Al Wasl | 9 |
Jumeirah Bay Island/MBR | 10 each |
Location | Total value of sales ($million) |
Palm Jumeirah | 992.97 |
Jumeirah Bay Island | 303.12 |
Dubai Hills Estate | 159.80 |
Al Wasl | 157.86 |
Palm Jebel Ali | 159.38 |
Dubai’s Growing Millionaire Population
Over the past 3-years, the UAE has been a top goal for millionaires to resettle. Henley & Partners reported that 15 billionaires, 212 centi-millionaires, and 72,500 millionaires lived in Dubai. Dubai has one of the highest growth of millionaires, reaching 78% in the past ten years from 2013 to 2023.
“The global super-rich remain fixated on Dubai, which is overwhelming the supply of luxury homes in the city. Indeed, the volume of demand for property in Emirates Hills, Jumeirah Bay Island, Jumeirah Islands, and The Palm Jumeirah has resulted in a 47% drop in the number of homes available for sale in these areas over the last 12 months,” said Faisal Durrani, partner and head of research for Mena at Knight Frank.
Investment Trends and Golden Visa Impact
The international real estate consultancy said that private investors were peeking to invest $4.4bn (Dh16.1bn) in Dubai’s property market, which is quite appealing in price points compared to other prevalent cities. But in some cities, it yields far better rental revenue and capital appreciation.
Michael Gelpke, CEO of Glam Properties, stated that recent trends in the UAE’s Golden Visa real estate market contain increased foreign direct investment, accelerating Dubai’s market growth.
“The investor profile is diversifying, attracting more European and Chinese buyers. There’s a noticeable shift towards an end-user market, with investors planning long-term residency. Demand for high-end properties is increasing, and the off-plan property segment is growing consistently.
“Enhanced family benefits and streamlined application processes make the program more attractive. Community living and mixed-use developments are gaining popularity among Golden Visa holders. These trends reflect the program’s success in stimulating the real estate sector and attracting long-term residents to the UAE,” he said.
Akshay Nagdev, Business Head at Foremen Fiefdom, stated that the present market scene shows an increased demand for luxury villas among those seeking ample and high-end living possibilities.
“Key locations such as Dubai Marina, Downtown Dubai, and Palm Jumeirah are top-rated due to their luxurious lifestyles, vibrant city life, and iconic landmarks. These areas also provide proximity to business hubs, making them convenient for many.
“Golden Visa holders who wish to sponsor and bring their families look for larger homes that can accommodate their needs, driving significant interest in such properties. High-end apartments in key districts are also sought after, especially those within gated communities that offer enhanced security and amenities,” said Nagdev.
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Top Performing Areas
According to Knight Frank, Palm Jumeirah held the top position, with 853 homes sold in Q1 of 2024, accounting for 89.3% of the total opulence sales. Jumeirah Bay Island (3.56%), Emirates Hills (1.05%), and Jumeirah Islands (5.03%) all monitored this rise.
Average transacted prices in Dubai’s most affluent neighborhoods stood at Dh3,706 per square foot during H1 2024, up 7% year-on-year.
“What is extraordinary about the continued sales growth in Dubai’s $10 million homes market is that it is set against a protracted decline in the number of luxury homes on the market. The number of $10 million plus home listings fell by 65.5% over the last 12 months to just 460 properties.
“This is a strong sign of the ‘buy-to-hold’ buyer profile that has taken root in the market, with anecdotal evidence continuing to suggest international HNWI are largely focussed on purchasing homes in the city for personal use, rather than to ‘flip’, which was a defining feature of the previous two market cycles,” said Durrani.
