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Dubai's Prime Property Market Soars: 190 Deals Over $10M in H1 2024 Despite Supply Shortage

Dubai's Prime Property Market Soars: 190 Deals Over $10M in H1 2024 Despite Supply Shortage
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Dubai's prime residential market is facing a severe supply shortage, with available homes dropping by 47% over the past year to just 2,851 properties, according to global property consultant Knight Frank. This shortage is most pronounced in affluent neighborhoods like Emirates Hills, Jumeirah Bay Island, Jumeirah Islands, and The Palm Jumeirah.

Soaring Demand from the Global Elite

Faisal Durrani, Partner and Head of Research, MENA at Knight Frank, attributes this decline to relentless demand from the global super-rich.

"The global super-rich remain fixated on Dubai, overwhelming the supply of luxury homes in the city,"

Durrani explained. This follows findings from the 2024 Destination Dubai report, which noted that $4.4 billion of global private capital is targeting Dubai's residential market this year, a 76% increase from 2023.

Luxury Real Estate Market Performance

Dubai’s prime residential market has seen impressive performance in recent months. Average transacted prices in the city’s most upscale areas reached AED 3,706 per square foot in the first half of 2024, marking a 7% increase from the same period in 2023.

The Palm Jumeirah led the market with 853 home sales, representing 89.3% of prime deals. Other significant areas include Jumeirah Islands (5.03%), Jumeirah Bay Island (3.56%), and Emirates Hills (1.05%).

Dominance in the Over $10M Market

Dubai continues to lead the market for homes priced over $10 million, recording 431 sales in 2023, which is 80% higher than the next closest market, London. In the first half of 2024 alone, there were 190 additional sales in this exclusive category.

"The continued sales growth in Dubai’s $10M homes market is extraordinary, especially considering the declining number of luxury homes available,"

Durrani noted.

The number of listings for homes valued over $10 million fell by 65.5% over the past year to just 460 properties. This trend highlights a 'buy-to-hold' buyer profile, with high-net-worth individuals purchasing homes primarily for personal use rather than resale. The total value of homes worth over $10 million sold during H1 2024 reached $3.2 billion, building on the $7.7 billion recorded in 2023.

The Palm Jumeirah led the luxury market with 21 deals worth over $10 million, totaling $365 million and accounting for 26% of sales by total value. Emirates Hills and District One followed in second and third places, respectively.

Strong Demand for Ultra-Luxury Homes

Demand for ultra-luxury homes priced above $25 million remains robust. Will McKintosh, Regional Partner and Head of Residential, MENA at Knight Frank, highlighted significant growth in this segment.

"The number of ‘over $25 million’ home sales grew by 25% in the last three months alone, bringing the tally for the first half of 2024 to 21,"

McKintosh said. This is a remarkable increase compared to the average of fewer than three sales per year between 2015 and 2021.

Dubai’s prime residential market continues to thrive despite a significant supply shortage, driven by strong demand from global high-net-worth individuals. The city’s luxury real estate sector is set for further growth as it attracts more international capital.

Total number of $10m+ homes sold in Dubai

YearNumber of $10m+ home sales
201011
20115
201211
201320
201412
201531
201615
201723
201813
201922
202022
202193
2022224
2023431
H1|24190

Breakdown of $10m+ home sales in Dubai during H1 2024

LocationNumber of $10m+ home sales
Palm Jumeirah60
Palm Jebel Ali14
Business Bay12
Al Wasl9
Jumeirah Bay Island10
District One (MBR City)10
Dubai Hills Estate8
Tilal Al Ghaf10
Downtown9
Emirates Hills12
Jumeirah Beach Residence2
Al Quoz Second4
Al Jadaf4
District Eleven (MBR City)5
Jumeirah Golf Estates4
Dubai Islands9
Jumeirah Second3
Palm Deira4
World Islands1

 Total value of $10m+ homes sold in Dubai in H1 2024

LocationTotal value of sales ($)% of $10m+ sales in H1|24
Palm Jumeirah992,974,37331.4%
Jumeirah Bay Island303,120,9819.6%
Dubai Hills Estate159,809,2645.1%
Al Wasl157,861,0365%
Palm Jebel Ali159,382,3435%
District One (MBR City)216,012,3426.8%
Tilal Al Ghaf186,185,7915.9%
Business Bay195,540,9236.2%
Emirates Hills200,077,6576.3%
Downtown Dubai119,150,5493.8%
Al Quoz Second66,626,7032.1%
Palm Deira45,516,6211.4%
Al Jadaf47,370,5721.5%
World Islands21,525,8860.7%
Jumeirah Golf Estates42,615,8041.3%
District Eleven (MBR City)52,955,3521.7%
Jumeirah Beach Residence36,512,2621.2%
Jumeirah Second47,901,9071.5%
Dubai Islands109,180,9263.5%

Total number of $25m+ homes sold in Dubai

YearNumber of $25m+ home sales
20154
20162
20172
20181
20192
20200
20218
202228
202356
H1|2427

Total number of $10m+ homes sold globally (Q1 2024)

RankCityNumber of $10m+ sales   
1Dubai105
2New York56
3Palm Beach47
4London41
5Los Angeles37
6Hong Kong36
7Miami32
8Geneva29
9Orange County22
10Singapore19
11Paris2

Total value of $10m+ homes sold globally (Q1 2024)

RankCityTotal value of $10m+ sales
1Dubai$1.7bn
2New York$1.2bn
3Palm Beach$1.1bn
4Hong Kong$988m
5Geneva$ 696m
6Los Angeles$672m
7London$601m
8Miami$496m
9Orange County$300m
10Singapore$249m
11Paris$24m

News Source: Gulf Business

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Maryam Pervez

Written by Maryam Pervez

Maryam is the Managing Editor at HiDubai, bringing 8+ years of expertise in marketing, social media, and content development. She holds a Master's degree in Marketing Comms from Middlesex University.
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