The third quarter of 2024 saw a decline in the number of luxury property listings in Dubai, as demand continued to exceed supply.
In Q3 2024, there were 400 deals recorded in the city’s prime areas, a decrease from 489 in Q3 2023. This trend indicates a drop in the number of homes available for sale throughout the city.
Listings in four key luxury areas fell by 52% in Q3 2024 compared to the same timeframe last year, illustrating that supply cannot keep pace with the rapid sales activity.
There was a significant decrease in listings for homes priced over $10 million, which dropped from 3,316 between Q1 and Q3 2023 to just 1,622 during the same period in 2024, according to Knight Frank.
Nevertheless, 92 transactions worth over $10 million were completed in the third quarter of 2024, up from 85 in the previous quarter, reflecting an 8.2% increase.
Between January and September 2024, 282 homes sold for more than $10 million were recorded, compared to 277 in the same period of 2023. The total value of homes sold over this period reached $4.5 billion.
The Palm Jumeirah continued to be the top luxury sales area in Q3, with 19 transactions exceeding $10 million, amounting to $344 million. Dubai Silicon Oasis and Dubai Hills Estate ranked second and third, respectively.
Knight Frank’s data indicated that nine sales over $10 million occurred on Palm Jebel Ali, totaling $97 million in Q3 2024. This brings the total for Dubai’s second palm-shaped island to $1.1 billion in 2024, accounting for 24.4% of the total value of luxury home sales in the city thus far.
“The momentum in the higher end of the market remains strong. Developers are racing to meet the demand for homes priced over $10 million, but the pace of ultra-luxury sales continues to quicken. Listings in this price bracket are decreasing, with a nearly 51% drop in the first nine months of 2024 compared to the same period last year,” said Faisal Durrani, partner and head of research for MENA at Knight Frank.
“Despite this, sales volumes in this exclusive segment are on the rise. This illustrates the strength and persistence of demand for Dubai’s priciest homes, which the ultra-wealthy continue to acquire at unprecedented rates. In fact, the ratio of sales to listings for homes priced over $10 million has risen to 17.1% this year, up from 10.7% in 2023,” Durrani added.
The average transaction price for homes in Dubai’s prime neighborhoods was $3.5 million during Q3 2024.
With 384 sales, the Palm Jumeirah (90.4%) accounted for the majority of prime transactions, followed by Jumeirah Islands (6.1%), Emirates Hills (2.2%), and Jumeirah Bay Island (1.4%).
“The Palm Jumeirah continues to be the preferred location for Dubai’s elite and global high-net-worth individuals, who are drawn to what is arguably the most iconic island in the world. Additionally, the average price per square foot for homes exceeding $10 million here stands at $2,048, showcasing the value that Dubai offers to international buyers,” noted Petri Mannila, partner and head of prime residential UAE at Knight Frank.
“With almost no development sites left, Dubai’s latest island projects—Palm Jebel Ali and Dubai Islands—are quickly becoming new luxury home hotspots and are likely to join our prime watch list alongside Tilal Al Ghaf, Jumeirah Golf Estates, Al Barari, and Blue Waters,” Mannila concluded.
