Palm Jumeirah and Palm Jebel Ali attract investors as Dubai’s luxury real estate sector reaches record highs
Dubai’s luxury residential real estate market set a new benchmark in 2024, achieving a record number of $10m+ home sales, according to Knight Frank’s latest analysis.
The city recorded 435 sales above $10m, surpassing the 434 transactions registered in 2023, further solidifying its position as the world’s top luxury home market.
A particularly strong Q4 contributed to this milestone, with 153 high-value transactions—the highest quarterly figure ever recorded in this segment.
Dubai’s luxury real estate market
Faisal Durrani, Partner – Head of Research, MENA, stated: “Despite global economic challenges, Dubai’s appeal as a hub for international wealth continues to grow, with developers struggling to keep up with demand for ultra-luxury homes.
“The city’s magnetism is also evident in its population growth, which exceeded 3.8m in 2024—an increase of approximately 170,000, or 4.6 per cent. This surge continues to drive housing demand across all price brackets.
“Last year, house prices rose by 19.1 per cent, pushing values 13.1 per cent above the 2014 peak. However, villas remain the primary focus of the global ultra-wealthy, with prices climbing by 20.2 per cent last year—an astounding 99.8 per cent increase from Q1 2020 levels.”
Palm Jumeirah remains the epicenter of Dubai’s luxury market, with 127 transactions (29 per cent of the total volume) above $10m in 2024, totaling nearly $2.3bn in property sales and accounting for 32.5 per cent of Dubai’s $10m+ sales by value.
Dubai’s second palm-shaped island, Palm Jebel Ali, has been gaining traction, ranking second in transaction volume with 36 high-value sales.
This growing demand highlights the strong appetite for luxury waterfront properties. The first handovers on Palm Jebel Ali are scheduled for 2027.
In terms of value, Emirates Hills placed second with $514.5m in sales (7.3 per cent of the luxury market), followed by Jumeirah Bay Island, District One, and Dubai Hills Estate, which contributed 6.7 per cent, 6.6 per cent, and 6.2 per cent of the market, respectively.
Villas made up 68.5 per cent of all luxury transactions, reflecting continued demand for this property type as Dubai strengthens its reputation as a global luxury real estate hub, particularly among high-net-worth international buyers.
By contrast, villas accounted for 52 per cent of $10m+ transactions in both 2022 and 2023.
Petri Mannila, Partner – Head of Prime Residential, UAE, commented: “Dubai has positioned itself as the world’s leading luxury home market, an impressive feat given its relatively young real estate sector.
“The city’s rapid rise in the luxury market aligns with an influx of ultra-wealthy residents relocating with their families and businesses.”
Off-plan market dominance
In 2024, 52 per cent of all luxury sales occurred in the primary (off-plan) market, with Omniyat, Nakheel, and Emaar Properties leading the sector. These three developers accounted for 46 per cent of off-plan transactions, contributing 19 per cent, 16 per cent, and 11 per cent of luxury sales, respectively.
Emaar’s The Oasis – Lavita, adjacent to Jumeirah Golf Estates, launched in Q3 2024 and quickly became the year’s most sought-after luxury project, with 29 out of 43 villas selling for over $10m, according to Knight Frank.
Dubai’s prime residential sector—defined by Knight Frank as Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands, and Emirates Hills—also experienced significant growth.
In Q4 2024, the average transaction price in Dubai’s most exclusive neighborhoods reached AED6,626 ($1,804) per square foot, reflecting a 6 per cent increase from Q4 2023.
Palm Jumeirah remained dominant, accounting for two-thirds of all prime property deals with 105 transactions. The average sale price on Palm Jumeirah climbed to AED7,305 ($1,990) per square foot, a 15 per cent rise from Q4 2023.
Supply challenges in the luxury segment
Mannila noted: “Dubai’s $10m+ home market has witnessed extraordinary growth despite a steady decline in luxury property availability. Since mid-2023, supply has struggled to keep pace with demand from both local elites and global high-net-worth individuals.”
While the number of luxury listings began to recover in Q3 2024, showing gradual improvement, the Q4 total of 805 $10m+ listings remained 14 per cent below the same period in 2023.
“Overall, the number of homes priced above $10m fell by 40 per cent in 2024, with just 2,490 properties listed, compared to 4,120 in 2023.”
Despite fluctuations earlier in the year, demand for ultra-luxury homes remains strong, particularly in the $25m+ segment, where sales continued to perform well.
Transactions in this category rebounded significantly in Q4 2024, reaching 15 deals—just one short of the record set in Q3 2023—further reinforcing the strength of Dubai’s ultra-luxury real estate market.
