In the third quarter of 2024, there were fewer listings for luxury properties in Dubai as supply continued to fall short of demand.
In the most desirable areas of the city, 400 deals were recorded in Q3 2024 as opposed to 489 in Q3 2023. This illustrates the decline in the quantity of houses up for sale throughout the city.
Comparing Q3 2024 to the same period in 2023, there were 52% fewer home listings in the four desirable areas, indicating that supply is not keeping up with the speed at which sales are occurring.
Knight Frank reports that there was a significant decline in the number of properties listed for more than $10 million, from 3,316 in Q1–Q3 2023 to just 1,622 in the same period in 2024.
However, compared to 85 in the prior quarter, 92 deals worth $10 million or more were signed in the third quarter of 2024—an increase of 8.2 percent.
Compared to 277 during the same period in 2023, a total of 282 home sales of over $10 million were recorded between January and September of 2024. Home sales for more than $10 million brought in a total of $4.5 billion between January and September of 2024.
With 19 transactions totaling $344 million during the third quarter, the Palm Jumeirah continued to be Dubai’s hotspot for luxury sales. Second and third place went to Dubai Silicon Oasis and Dubai Hills Estate, respectively.
According to Knight Frank data, nine transactions totaling more than $10 million were made on the Palm Jebel Ali in Q3 2024, making up $97 million. With this, the total for Dubai’s second palm-tree-shaped island in 2024 reached $1.1 billion, or 24.4% of the total value of the city’s luxury home sales thus far this year.
“The momentum in the upper echelons of the market persists. Developers are racing to satisfy the demand for $10 million plus homes, but the rate at which ultra-luxury homes are selling continues to accelerate. $10 million plus listings continue to decline, with a near 51 percent fall during the first nine months of 2024, when compared to the same period last year,” said Faisal Durrani, partner – head of research for Mena at Knight Frank.
“Despite this, sales volumes in this exclusive segment retain their upward trajectory. This highlights the strength and persistence of demand for the city’s most expensive homes, which the ultra-rich continue to secure at record rates. Indeed, this is also reflected in the fact that the ratio of $10-million-plus home sales to listings has climbed to 17.1 percent this year, from 10.7 percent during 2023,” said Durrani.
In Q3 2024, the average price that a home in one of Dubai’s upscale neighborhoods sold for was $3.5 million.
The Palm Jumeirah (90.4%) again accounted for the majority of prime deals in Q3, with 384 home sales. Jumeirah Islands (6.1%), Emirates Hills (2.2%), and Jumeirah Bay Island (1.4%) were the next highest percentages.
“The Palm Jumeirah remains the location of choice for both Dubai’s elite and global high net-worth individuals who continue to zero in on what is arguably the world’s most iconic island. And when you factor for the fact that average transacted prices here for homes priced at over $10 million stand at $2,048 per square foot, it is easy to understand as well the value for money that Dubai presents to international buyers,” said Petri Mannila, partner – head of prime residential UAE, Knight Frank.
“With almost no development sites remaining, Dubai’s latest island developments – the Palm Jebel Ali and Dubai Islands – are rapidly rising as new luxury home hotspots and will soon likely join our prime watch list to sit alongside Tilal Al Ghaf, Jumeirah Golf Estates, Al Barari and Blue Waters,” said Mannila.
