Dubai recorded the sale of around 190 luxury homes (priced at $10 million and above) with a total value of $3.2 billion (AED 11.75 billion) during the first half of 2024, according to a recent report from real estate consultancy Knight Frank.
The report showed that the total number of transactions is holding up despite the number of luxury homes available for sale on the market falling by 65.5% year-on-year in the second quarter, as the wealthy hold on to their homes for personal use.
Faisal Durrani, Knight Frank’s head of research for the Middle East and North Africa, said this was a strong sign of the “buy-to-hold” trend taking hold in the market.
Durrani believes the trend suggests that global high net worth individuals are largely focused on buying homes in Dubai for personal use, rather than the trading-in-transit aspect that has been a hallmark of the previous two market cycles.
The report showed that Palm Jumeirah was the most sought-after area, with 21 sales of homes valued at $10 million or more in Q2, accounting for 26% of sales during the period. This was followed by Emirates Hills, which accounted for 10% of these transactions, and District One, which accounted for 7.8%. Sales of properties valued at $25 million or more jumped 25% in Q2 compared to the first three months of the year, to a total of 15 homes.
The number of luxury home listings for sale in the second quarter of this year reached 2,851, down from 5,376 in the second quarter of 2023; the reason behind this is that the owners, who are among the world’s wealthy, are holding on to their residential properties in Dubai, unlike the previous pattern where buyers aim to sell the property afterwards. Thenumber of homes available for sale in Dubai’s luxury housing markets: Emirates Hills, Jumeirah Bay, Jumeirah Islands and Palm Jumeirah, decreased by 47% over the past 12 months to 2,851 properties, according to the latest global analysis issued by Knight Frank.
According to the “Destination Dubai 2024” report, $4.4 billion of global private capital is actively targeting the emirate’s residential market this year; a 76% increase from 2023.
Dubai’s luxury housing market, which includes Palm Jumeirah, Jumeirah Bay, Jumeirah Islands and Emirates Hills, also witnessed a surge in performance, according to Knight Frank.
Average transaction prices in Dubai’s most affluent neighbourhoods stood at AED3,706 per square foot in H1 2024, up 7% on H1 2023.
With 853 homes sold, Palm Jumeirah once again accounted for the largest share of luxury transactions in H1, accounting for 89.3%, followed by Jumeirah Islands (5.03%), Jumeirah Bay Island (3.56%) and Emirates Hills (1.05%).
At the top of the market, Dubai continued to cement its position as the deepest market for home sales above $10 million, according to Knight Frank.
After recording a record 431 sales above $10 million in 2023 – 80% more than the next closest competitor, London – the emirate saw a further 190 sales in this exclusive price bracket in H1.
In fact, the number of listed properties, valued at $10 million plus home listings, has fallen by 65.5% over the past 12 months to just 460 properties as the world’s wealthy hold onto their Dubai properties.