Dubai’s luxury property market saw a decline in listings during the third quarter of 2024 due to high demand surpassing supply. The number of deals registered in prime locations decreased from 489 in Q3 2023 to 400 in Q3 2024, indicating a shortage in available homes for sale across the city. The four prime areas experienced a 52 per cent drop in home listings compared to the same period last year, reflecting the lag in supply relative to sales. Additionally, $10 million-plus home listings decreased significantly from 3,316 in Q1-Q3 2023 to 1,622 in the same period of 2024.
Despite the decline in luxury property listings, there was an increase in the number of deals valued at $10 million or more. A total of 92 deals with a value of $10 million-plus were signed in Q3 2024, an 8.2 per cent rise from the previous quarter. Between January and September 2024, a total of 282 home sales of over $10 million were recorded, amounting to $4.5 billion. The Palm Jumeirah emerged as the top luxury sales location during the third quarter, with 19 deals worth over $10 million totaling $344 million.
Knight Frank’s data highlighted that nine sales exceeding $10 million were recorded on the Palm Jebel Ali in Q3 2024, totaling $97 million. This brought the total luxury home sales value for 2024 on Dubai’s second palm-shaped island to $1.1 billion, representing 24.4 per cent of the city’s total luxury sales value for the year. Faisal Durrani, partner and head of research for Mena at Knight Frank, noted the ongoing momentum in the upper echelons of the market and the swift sales of ultra-luxury homes despite declining listings in the $10 million-plus category.
The average transacted price for a home in Dubai’s prime neighborhoods was $3.5 million during Q3 2024, with the Palm Jumeirah accounting for the majority of prime deals at 90.4 per cent. Petri Mannila, partner and head of prime residential UAE at Knight Frank, emphasized the Palm Jumeirah’s appeal to Dubai’s elite and global high-net-worth individuals, considering it the world’s most iconic island. As development sites become scarce, new luxury home hotspots like the Palm Jebel Ali and Dubai Islands are emerging, likely to be added to the prime watch list alongside other prestigious locations in Dubai.
The demand for luxury properties in Dubai remains strong, with high-end buyers continuing to seek exclusive homes despite the decrease in listings. The city’s prime locations, including the Palm Jumeirah, continue to attract affluent investors, showcasing the value for money that Dubai presents to international buyers. As new luxury developments rise, Dubai’s real estate market is set to evolve, with upcoming areas like Palm Jebel Ali and Dubai Islands expected to become sought-after luxury destinations in the near future. Overall, the luxury property market in Dubai displays resilience and growth, offering ample opportunities for high-end real estate investments.
