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Dubai’s high-end property sales undented by drop in listings, consultancy says

Published July 8, 2024
A general view of residential properties at the Balqis Residence on Palm Jumeirah in Dubai, United Arab Emirates. Photo: Reuters
A general view of residential properties at the Balqis Residence on Palm Jumeirah in Dubai, United Arab Emirates. Photo: Reuters

DUBAI: The number of homes worth $10 million or more that were sold in Dubai held steady in the first half of the year despite a drop in listings, an industry report showed on Monday, as demand from the international ultra-rich stayed strong.

A total of 190 homes worth an overall $3.2 billion were sold in the six months to end June compared with 189 properties for $3.3 billion in the same period of 2023, according to provisional data from property consultancy Knight Frank.

‘Dubai’s residential property still relatively affordable compared to regional cities’

The total number of deals held up despite a 65.5% year-on-year drop in the number of such luxury homes available on the market in the second quarter, the report showed.

“This is a strong sign of the ‘buy-to-hold’ buyer profile that has taken root in the market,” Faisal Durrani, Knight Frank’s head of research for Middle East and North Africa (MENA), was quoted as saying in the report.

The trend suggests international high-net worth individuals “are largely focused on purchasing homes in the city for personal use, rather than to ‘flip’, which was a defining feature of the previous two market cycles,” he added.

 General view of Palm Jumeirah development, in Dubai, United Arab Emirates. Photo: Reuters
General view of Palm Jumeirah development, in Dubai, United Arab Emirates. Photo: Reuters

Home to the world’s tallest tower, the United Arab Emirates’ Dubai is the Middle East’s biggest tourism and trade hub, attracting a record 17.15 million international overnight visitors last year.

It is seeking to grow its economy through tourism, building a local financial centre and by attracting foreign capital, including into property, with property purchase and rental prices showing no signs of fizzling out.

The report showed palm tree-shaped artificial island Palm Jumeirah was the most sought-after area, recording 21 sales of homes worth $10 million or more in the second quarter, accounting for 26% of sales in the period.

 A construction site is seen, with the Dubai skyline including the Burj Khalifa tower visible in the background, in Dubai, United Arab Emirates. Photo: Reuters
A construction site is seen, with the Dubai skyline including the Burj Khalifa tower visible in the background, in Dubai, United Arab Emirates. Photo: Reuters

It was followed by Emirates Hills with 10% and the District One area with 7.8% of such deals. Sales of properties worth $25 million or more jumped 25% in the second quarter compared with the first three months of the year to a total of 15 homes.

2023: Pakistanis remain among top 10 buyers of Dubai property, Indians top list

Last year Dubai ranked first globally for the number of home sales above $10 million, selling nearly 80% more such properties than second-placed London.

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