Prime properties: 190 deals over $10m recorded Dubai in H1; supply drops – Gulf Business

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Dubai Prime Properties demand and supply q2 2024, - Knight frank Image: Getty Images

Dubai’s prime residential markets are experiencing a significant supply shortage, with the number of available homes falling by 47 per cent over the past 12 months to just 2,851 properties, according to global property consultant Knight Frank.

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The affluent neighbourhoods of Emirates Hills, Jumeirah Bay Island, Jumeirah Islands and The Palm Jumeirah are particularly affected by this dramatic decrease.

Faisal Durrani, partner and head of Research, MENA at Knight Frank, attributed the decline to the relentless demand from the global super-rich. “The global super-rich remain fixated by Dubai, which is overwhelming the supply of luxury homes in the city,” Durrani said. “This builds on the findings from our 2024 Destination Dubai report which found that $4.4bn of global private capital is actively targeting the emirate’s residential market this year – up 76 per cent on 2023.”

Luxury real estate market sees surge

Dubai’s prime residential market has witnessed a surge in performance in the past months.

Average transacted prices in the city’s most affluent neighbourhoods reached Dhs3,706 per square foot during the first half of 2024, marking a 7 per cent increase compared to the same period in 2023.

The Palm Jumeirah led the market with 853 home sales, accounting for 89.3 per cent of prime deals, followed by Jumeirah Islands (5.03 per cent), Jumeirah Bay Island (3.56 per cent), and Emirates Hills (1.05 per cent).

Prime properties over $10m in Dubai

Dubai continues to dominate the ‘over $10m’ home sales market, solidifying its position as the deepest market in this price bracket.

The emirate recorded 431 sales above $10m in 2023, 80 per cent higher than the next closest market, London.

The first half of 2024 saw an additional 190 sales in this exclusive category. “What is extraordinary about the continued sales growth in Dubai’s $10m homes market is that it is set against a protracted decline in the number of luxury homes on the market,” Durrani noted.

The number of home listings valued more than $10m fell by 65.5 per cent over the past year to just 460 properties. This trend reflects a ‘buy-to-hold’ buyer profile, with international high-net-worth individuals primarily purchasing homes for personal use rather than resale.

The total value of homes worth over $10m sold during H1 2024 reached $3.2bn, building on the $7.7bn figure recorded in 2023.

The Palm Jumeirah led the luxury market with 21 deals worth over $10m, totalling $365m and accounting for 26 per cent of sales by total value.

Emirates Hills and District One followed in second and third places, respectively.

Demand for properties worth $25m is strong

Demand for ultra-luxury homes priced above $25 m also remains robust. Will McKintosh, regional partner and head of Residential, MENA at Knight Frank, highlighted the growth in this segment.

“The number of ‘over $25m’ home sales grew by 25 per cent in the last three months alone, taking the tally for the first half of 2024 to 21,” McKintosh said. This is a remarkable increase compared to the average of less than three sales per year between 2015 and 2021.

Read: Abu Dhabi real estate gaining popularity among global HNWIs

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