Dubai’s luxury residential market stabilized in 2024 while setting a new benchmark for home sales exceeding $10 million.
The city witnessed 435 transactions in this price range, exceeding the 434 sales recorded in 2023, as reported by the latest analysis from the global property consultancy, Knight Frank.
In the fourth quarter, a total of 153 agreements were finalized, marking the highest quarterly total ever recorded for the luxury sector.
Faisal Durrani, partner and head of research for Mena at Knight Frank, stated that despite facing macroeconomic challenges, Dubai’s appeal as a center for global wealth is on the rise, with developers finding it difficult to keep up with the increasing demand for ultra-luxury properties.
“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 said.
Durrani noted that residential property prices experienced an increase of 19.1 percent in the previous year. The interest of the world’s wealthiest individuals continued to be directed towards its villas, which saw a value appreciation of 20.2 percent last year, indicating a remarkable 99.8 percent rise compared to the levels recorded in the first quarter of 2020.
Palm Jumeirah tops again
The Palm Jumeirah continued to be the premier destination for luxury real estate sales in Dubai, achieving 127 transactions—representing 29 percent of the overall volume—each exceeding $10 million in 2024. This resulted in nearly $2.3 billion in property sales, which accounted for 32.5 percent of the total value of Dubai’s luxury sales exceeding $10 million.
Palm Jebel Ali, experiencing significant growth, secured the second position in transaction volume with 36 deals.
In terms of total value, Emirates Hills ranked second with transactions amounting to $514.5 million. Following closely were Jumeirah Bay Island, District One, and Dubai Hills Estate, which contributed 6.7 percent, 6.6 percent, and 6.2 percent, respectively, to the luxury market.
Villas accounted for 68.5 per cent of all luxury deals.
“Dubai has emerged as the world’s leading market for luxury home sales, an enviable position given the relatively young age of the market. The explosive arrival of the city on the luxury homes market stage coincides with an influx of ultra-rich residents who are relocating to the emirate with their families and businesses,” said Petri Mannila, partner, head of prime residential, UAE, at Knight Frank.
It said 52 per cent of all luxury sales in 2024 occurred in the primary (off-plan) market, with the top three developers — Omniyat, Nakheel and Emaar Properties — accounting for a combined 46 per cent of these transactions.
“Dubai’s US$ 10 million homes market has seen extraordinary sales growth despite a prolonged decline in the availability of luxury homes. Since mid-2023, the supply of luxury properties has steadily decreased as developers struggled to meet the surging demand from both Dubai’s elite and the global HNWI,” said Mannila.
