Dubai recorded $1.7 billion in sales of homes priced above $10 million during the first three months of 2024, up 19 percent from the corresponding period last year, new research by global property consultancy Knight Frank revealed.
“The level of deal activity in Dubai continues to strengthen, particularly at the top end of the market, where the near constant stream of international high net-worth individuals vying for the city’s most expensive homes persists,” said Faisal Durrani, Partner – Head of Research, MENA, at Knight Frank.
Dubai is now the world’s busiest market for luxury properties over $10 million, the firm said. In 2023, Knight Frank saw the sale of 431 homes in this price bracket – almost 80 percent higher than the next nearest contender, London (at 240). New York rounded off the top three most active real estate markets for luxury homes with 211 properties sold.
“The laser-like focus of the global wealthy on Dubai is best reflected in the rapid deterioration in the volume of $10 million+ homes for sale, which has fallen by 59 percent across the city over the last 12 months to just 864 homes,” he added.
The top 3 Dubai neighbourhoods that attracted the most interest were Palm Jumeirah, Jumeirah Bay Island, and Dubai Hills Estate.
Dubai’s Palm Jumeirah saw deals worth $628 million during the quarter, while Jumeirah Bay Island and Dubai Hills Estate accounted for 11.1 percent and 7 percent of sales volumes respectively.
In terms of unit sales, Palm Jumeirah topped the list with 39 properties traded. However, Palm Jebel Ali and Business Bay saw notable activity too, with over 10 and seven high-end home sales each, surpassing Jumeirah Bay Island and Dubai Hills Estate.
The report suggests that while Palm Jumeirah garners headlines, other emerging locations like Dubai Hills Estate are becoming more popular with luxury home buyers.
“Dubai Hills Estate has quietly for some time been rising up the ranks as not only one of Dubai’s most sought-after markets for domestic buyers, but now luxury home buyers are increasingly active here too,” said Will McKintosh, Regional Partner and Head of Prime Residential, MENA at Knight Frank.
Factors like access to green space and areas like Downtown and New Dubai are driving interest in these alternative markets.
“Prices have unsurprisingly responded to the growing demand to live here and have risen by almost 11 percent in the last 12 months, while the number of homes available for sale has fallen by 75 percent to just over 1,000 units this past March.”
Overall, Dubai’s prime residential areas, encompassing Palm Jumeirah, Jumeirah Bay Island, and others, saw a surge in performance.
“After growing by 16.3 percent in 2023, following an extraordinary 44.4 percent increase during 2022, Dubai’s prime residential market has grown by 26.3 percent over the last 12 months, easily making it one of, if not the fastest growing prime residential market globally,” said Durrani.
“While these startling growth rates are phenomenal, it doesn’t take away from the fact that Dubai’s luxury homes market still remains one of the most affordable in the world… $1 million secures some 980 square feet of prime residential space in Dubai, compared to just 366 square feet in New York, 355 square feet in London, or 172 square feet in Monaco,” he added.
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