Dubai’s residential real estate market saw an 8.2% quarter-on-quarter increase in the total number of home sales above $10 million (AED 37 million), reaching 92 deals, with an average sale price of $15.3 million (AED 56.3 million), according to the latest analysis from global real estate consultancy Knight Frank.
Total luxury home sales in Dubai during the nine months amounted to AED 16.5 billion (US$4.5 billion). Faisal Durrani, Partner – Head of Research, MENA, explained: “Momentum remains strong at the upper end of the luxury market, with developers racing to meet demand for homes above $10 million. However, the pace of sales of these luxury homes continues to increase. Sales volumes in this luxury segment continue to grow significantly, reflecting the strength and continued demand for the city’s most expensive residential properties, which the wealthy continue to acquire at record rates.” He added: “The rapid turnaround in luxury sales and the lack of return to the market is a reflection of what Knight Frank says is a ‘buy-to-hold’ and ‘buy-to-live’ mentality currently prevailing in Dubai’s prime residential market.
Palm Jumeirah remains the centre of luxury sales in Dubai, recording 19 transactions worth over US$10 million, totalling US$344 million during the third quarter, accounting for 31.2% of sales above US$10 million in value.
Dubai Silicon Oasis (25.4%) and Dubai Hills Estate (12.1%) followed in second and third place respectively. This quarter saw Dubai Silicon Oasis emerge as a prime location for luxury sales, with a number of high-value sales.
Petri Manella, Partner – Head of Luxury, UAE, said: “Palm Jumeirah remains the preferred location for Dubai’s elite and global high net worth individuals, who continue to focus on what is considered the world’s most iconic island. When you consider that the average price of homes over $10 million here is $2,048 per square foot, it’s easy to understand the value Dubai offers international buyers. With few development sites available, Dubai’s newest island projects, such as Palm Jebel Ali and Dubai Islands, are quickly emerging as new hotspots for luxury homes.
Nine sales of $10 million or more were recorded on Palm Jebel Ali, totalling $97 million in Q3 2024. This brings the island’s 2024 total to $1.1 billion, accounting for 24.4% of the city’s luxury home sales so far this year.
During Q2 2024, Dubai retained its position as the world’s top market for home sales over $10 million, according to Knight Frank’s report, with New York (72) and Hong Kong (61) in second and third place. Even in the 12 months to the end of June 2024, Dubai recorded 436 home sales, roughly equivalent to the combined sales of luxury homes in New York (229) and London (214) over the same period.
Dubai’s luxury residential market, defined by Knight Frank as including the neighbourhoods of Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands and Emirates Hills, also saw a significant increase in sales. The average transaction price for a home in Dubai’s prime neighbourhoods was $3.5 million in Q3. With 384 home sales, Palm Jumeirah (90.4%) once again accounted for the lion’s share of prime transactions in Q3, followed by Jumeirah Islands (6.1%), Emirates Hills (2.2%) and Jumeirah Bay Island (1.4%).