Ultra-rich drive 65.5% fall in Dubai luxury home listings during Q2

Number of prime home listings in Q2 2024 stood at 2,851, down from 5,376 in Q2 2023
190 deals over US$ 10 million during H1 recorded, equalling the 189 US$10 million+ sales in H1 2023
15 sales of homes priced above US$25 million during Q2 – a rise of 25% on Q1 2024

Dubai | 8 July 2024: The number of homes available for sale in Dubai’s prime residential markets – Emirates Hills, Jumeirah Bay Island, Jumeirah Islands and The Palm Jumeirah – has fallen by 47% over the last 12 months to 2,851 properties, according to the latest analysis from global property consultant, Knight Frank.

Faisal Durrani, Partner – Head of Research, MENA, explained: “The global super-rich remain fixated by Dubai, which is overwhelming the supply of luxury homes in the city. Indeed, the volume of demand for property in Emirates Hills, Jumeirah Bay Island, Jumeirah Islands and The Palm Jumeirah has resulted in a 47% drop in the number of homes available for sale in these areas over the last 12-months.

“This builds on the findings from our 2024 Destination Dubai report which found that US$ 4.4bn of global private capital is actively targeting the emirate’s residential market this year – up 76% on 2023. 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.”

PRIME HOMES MARKET

Dubai’s prime residential market, which includes the Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands and Emirates Hills, has experienced a surge in performance as well, according to Knight Frank.

Average transacted prices in Dubai’s most affluent neighbourhoods stood at AED 3,706 psf during H1 2024, up 7% on H1 2023.

With 853 home sales, the Palm Jumeirah once again accounted for the lion’s share of prime deals in H1, at 89.3%, followed by Jumeirah Islands (5.03%), Jumeirah Bay Island (3.56%) and Emirates Hills (1.05%).

US$ 10 MILLION+ HOMES MARKET

At the very top of the market, Dubai has continued to cement its position as the deepest US$ 10 million+ home sales market, says Knight Frank. After registering a record 431 sales above US$ 10 million during 2023 – 80% higher than the next nearest contender: London – the emirate has seen a further 190 sales in this exclusive price bracket during H1.

Durrani continued: “What is extraordinary about the continued sales growth in Dubai’s US$10 million homes market is that it is set against a protracted decline in the number of luxury homes on the market. In fact, the number of US$10 million plus home listings fell by 65.5% over the last 12-months to just 460 properties. This is a strong sign of the ‘buy-to-hold’ buyer profile that has taken root in the market, with anecdotal evidence continuing to suggest international HNWI are largely focussed on purchasing homes in the city for personal use, rather than to ‘flip’, which was a defining feature of the previous two market cycles.”

The total value of US10 million+ homes sold during H1 totalled US$ 3.2bn and builds on the US$ 7.7bn figure recorded during 2023.

The Palm Jumeirah registered 21 deals worth over US$ 10 million, totalling US$ 365 million, and dominated the luxury homes market during Q2, accounting for 26% of sales by total value. Emirates Hills (10%) and District One (7.8%) followed in second and third place, respectively.

The Palm Jumeirah (21) also led the pack in terms of the total number of luxury homes sold, followed by Dubai Islands (9) and Emirates Hills (8).

US$ 25 MILLION+ HOMES MARKET

Will McKintosh, Regional Partner and Head of Residential, MENA, added: “Even further up the price spectrum, demand remains extremely robust, with the number of US$ 25 million plus home sales growing by 25% in the last three months alone, taking the tally for the first half of 2024 to 21. What is remarkable about this figure is that the average number of US$ 25 million plus home sales between averaged less than three a year, between 2015 and 2021”.

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