Dubai’s prime residential markets are experiencing an unprecedented strain in supply due to surging demand from the world’s super-rich. According to the latest analysis from global property consultant Knight Frank, the number of homes available for sale in top-tier areas such as Emirates Hills, Jumeirah Bay Island, Jumeirah Islands, and The Palm Jumeirah has plummeted by 47% over the past year, leaving just 2,851 properties on the market.
“The global super-rich remain fixated on Dubai, which is overwhelming the supply of luxury homes in the city,” explained an expert. “The demand for properties in these prime locations has led to a significant drop in available homes. This builds on the findings from our 2024 Destination Dubai report, which highlighted that $4.4 billion of global private capital is targeting the emirate’s residential market this year, marking a 76% increase from 2023. The appetite among the uber-wealthy continues to strengthen, and developers are struggling to keep up with this demand.”
The prime residential market in Dubai, particularly in areas like The Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands, and Emirates Hills, has seen a notable surge in performance. Average transacted prices in these affluent neighbourhoods reached AED 3,706 per square foot during the first half of 2024, reflecting a 7% increase from the same period in 2023. The Palm Jumeirah dominated the prime residential market, accounting for 89.3% of the 853 home sales recorded in the first half of the year. Jumeirah Islands followed with 5.03%, Jumeirah Bay Island with 3.56%, and Emirates Hills with 1.05%.
At the very top of the market, Dubai has solidified its position as the leading $10 million+ home sales market. After achieving a record 431 sales above $10 million in 2023 – 80% higher than the next closest contender, London – the emirate has seen an additional 190 sales in this exclusive price bracket during the first half of 2024. “What is extraordinary about the continued sales growth in Dubai’s $10 million homes market is that it is set against a backdrop of declining luxury home listings,” the expert continued. “The number of $10 million+ home listings has fallen by 65.5% over the past year, down to just 460 properties. This suggests a ‘buy-to-hold’ trend among buyers, with many international high-net-worth individuals purchasing homes in Dubai for personal use rather than for flipping, which characterised previous market cycles.”
The total value of $10 million+ homes sold in the first half of 2024 totalled $3.2 billion, building on the $7.7 billion recorded in 2023. The Palm Jumeirah led the market with 21 deals worth over $10 million, totalling $365 million, and accounting for 26% of sales by total value. Emirates Hills and District One followed, with 10% and 7.8% of sales respectively. The number of luxury homes sold also saw The Palm Jumeirah leading with 21 sales, followed by Dubai Islands with nine and Emirates Hills with eight.
