Luxury homes in Dubai are in high demand, with the number of properties for sale decreasing by almost half in the past year. According to a report by Knight Frank, the number of luxury homes available in high-end communities like Palm Jumeirah, Emirates Hills, and Jumeirah Bay Islands has dropped by 47 percent to 2,851 units. This shift is attributed to both end-users and investors, with buyers either wanting to use the properties for personal use or holding onto them as investments in anticipation of future price increases.
During the first half of 2024, Dubai saw 190 homes sold for over $10 million, with a significant demand for uber-luxury properties valued at $25 million and above. The top locations where these high-value homes were sold include Palm Jumeirah, Palm Jebel Ali, Business Bay, Al Wasl, and Jumeirah Bay Island. Knight Frank’s data also shows that Dubai has been a popular destination for millionaires, with a significant increase in wealthy individuals relocating to the city over the past few years.
The real estate market in Dubai has seen a surge in private investments, attracting billions of dollars from investors looking for opportunities in the city’s property market. The demand for luxury properties has been driven by a diversifying investor profile, with more European and Chinese buyers entering the market. The trend towards an end-user market and increased interest in high-end properties are driving the growth of the luxury real estate sector in Dubai.
Key factors contributing to the growing demand for luxury villas and high-end properties in Dubai include the city’s luxurious lifestyle, vibrant cityscape, and proximity to business hubs. Locations like Dubai Marina, Downtown Dubai, and Palm Jumeirah are particularly popular among Golden Visa holders looking to sponsor and bring their families to Dubai. The demand for high-end apartments and gated communities with enhanced security and amenities is also on the rise.
Palm Jumeirah remains the top-selling location for luxury homes in Dubai, with 853 homes sold in the first half of 2024. This accounts for almost 90 percent of total luxury sales in the city. The average transacted prices in Dubai’s most affluent neighborhoods have also seen a 7 percent increase year-on-year, standing at Dh3,706 per square foot during the first half of 2024. The market’s growth in luxury home sales is fueled by a decline in the number of luxury homes on the market, indicating a shift towards long-term ownership and personal use rather than quick turnovers.
Overall, the luxury real estate market in Dubai continues to attract high-net-worth individuals and investors from around the world, driving demand for high-end properties in the city’s most exclusive neighborhoods. With a focus on long-term residency and personal use, the market is expected to see sustained growth and stability in the coming years, making Dubai a top choice for luxury real estate investments.
