Dubai’s luxury residential market achieved a new record for $10 million-plus home sales, according to recent data collated by Knight Frank, the global real estate consultancy.
Dubai Residential Market Review for Q3 of 2024 noted 435 sales above $10 million, surpassing the 434 transactions registered during 2023, according to the latest analysis.
Faisal Durrani, Partner - Head of Research, MENA at Knight Frank, said Dubai’s attractiveness as a hub for international wealth continues to grow, with developers struggling to match the pace of demand for ultra-luxury residences.
“The magnetic attraction of the city is also reflected in the fact that Dubai’s population has crossed the 3.8 million mark, up by around 170,000, or 4.6 per cent, during 2024 alone, which continues to create new demand for housing at all price points,” he was quoted as saying by Khaleej Times.
“Over the last 18-24 months, Dubai has emerged as the world’s deepest market for $10 million-plus home sales, with high net worth individuals (HNWI) looking for prime luxury beachfront villas,” Durrani had told Business Recorder during a conversation in Dubai earlier.
The UAE has also emerged as one of the leading countries welcoming an inflow of High Net Worth Individuals (HNWIs) along with Singapore, USA and Italy, according to a recent report on wealth migration by Henley & Partners.
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Knight Frank’s latest Destination Dubai report also singled out Dubai as a hub for international HNWIs interested in purchasing a home in the city with a net worth in excess of $15 million.
In fact, Arabian Business reported on Monday that even middle-class Britons were joining the exodus of wealthy individuals from the United Kingdom, following its challenging economy and high taxes.
Global leader in luxury sales
Durrani added that house prices rose by 19.1 per cent in Dubai last year. The attention of the global super-rich remained focused on its villas, with values rising by 20.2 per cent last year, reflecting a 99.8 per cent uplift on the first quarter of 2020 levels.
He also surmised this trend to remain as more and more luxury properties were being purchased for end user purposes rather than investment.
In Q2 2024, Dubai retained its position as the top market globally for the number of home sales over $10 million with 94 sales, with New York (72) and Hong Kong (61) ranking in second and third place, respectively, according to Knight Frank data.
In fact, even during the 12-months to the end of June 2024, Dubai registered 445 home sales, surpassing the combined total of luxury sales in New York (229) and London (214) over the same period
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Palm Jumeirah leads the way
The Palm Jumeirah led the way with 127 deals – 29 per cent of the total volume – worth over $10 million in 2024, amounting to nearly $2.3 billion of property sales and accounting for 32.5 per cent of Dubai’s $10 million-plus sales by total value.
Palm Jebel Ali finished second in transaction volume with 36 deals.
In terms of value, Emirates Hills ranked second, with $514.5 million in transactions. Jumeirah Bay Island, District One, and Dubai Hills Estate followed, contributing 6.7 per cent, 6.6 per cent, and 6.2 per cent of the luxury market, respectively.
Villas accounted for 68.5 per cent of all luxury deals.
Knight Frank added that while global oil price volatility and regional competition are mitigating factors in this growth trajectory.
Although Gulf hubs are heavily investing in reforming and reinventing their economies, this is not an immediate threat to Dubai’s position as the region’s primary travel, tourism and trade hub, added Knight Frank.
With a population of close to 60 million, the GCC region could easily accommodate a second global gateway city, be it Riyadh, or elsewhere.
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