World’s rich flock to Dubai for luxury property, depleting supply of $10 million+ homes

dubai property
Dubai real estate market experiences an unprecedented boom. Image: Canva

The number of luxury homes available for sale in Dubai’s prime residential areas has plummeted by 47% over the past year, according to a new report from global property consultant Knight Frank.

The analysis reveals that listings in elite neighborhoods like Emirates Hills, Jumeirah Bay Island, Jumeirah Islands, and The Palm Jumeirah dropped to just 2,851 properties in Q2 2024, down from 5,376 in the same period last year.

This dramatic reduction in inventory comes as demand from ultra-wealthy international buyers continues to soar. Knight Frank’s research shows that $4.4 billion of global private capital is actively targeting Dubai’s residential market in 2024, a 76% increase from 2023.

“The global super-rich remain fixated by Dubai, which is overwhelming the supply of luxury homes in the city,” said Faisal Durrani, Partner and Head of Research for MENA at Knight Frank.

“This clearly highlights that the international buyer appetite, particularly among the uber wealthy, continues to strengthen and developers appear unable to keep pace with the demand.”

The report indicates that Dubai’s prime residential market has experienced strong price growth, with average transacted prices in the most affluent neighborhoods reaching AED 3,706 per square foot during the first half of 2024, up 7% from the same period in 2023.

At the very top of the market, Dubai has solidified its position as the world’s leading location for ultra-luxury home sales. The emirate saw 190 sales of properties priced over $10 million in the first half of 2024, matching the 189 such transactions recorded in the entirety of H1 2023. The total value of these sales reached $3.2 billion.

“What is extraordinary about the continued sales growth in Dubai’s $10 million homes market is that it is set against a protracted decline in the number of luxury homes on the market,” Durrani noted.

“In fact, the number of $10 million plus home listings fell by 65.5% over the last 12 months to just 460 properties.”

The Palm Jumeirah remains the epicenter of Dubai’s luxury real estate scene, accounting for 89.3% of prime deals in H1 2024 with 853 home sales. It also led in $10 million-plus transactions, registering 21 such deals worth a total of $365 million in Q2 alone.

Even more remarkably, sales of homes priced over $25 million have surged by 25% in just the last three months, bringing the total for the first half of 2024 to 21. This figure is particularly significant given that between 2015 and 2021, Dubai averaged less than three such sales per year.

As Dubai’s luxury real estate market continues to outperform global competitors, industry experts are closely watching to see how long this unprecedented boom can be sustained.


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