Due to the ongoing shortage of luxury real estate in Dubai, the number of listings decreased in the third quarter of 2024.
There were 400 deals in Q3 2024 compared to 489 in Q3 2023 in the city’s most sought-after neighborhoods. This demonstrates how the number of homes for sale in the city has decreased.
In the four sought-after areas, there were 52% fewer home listings in Q3 2024 compared to the same period in 2023, suggesting that supply is not keeping up with the rate of sales.
The number of properties listed for more than $10 million has significantly decreased, according to Knight Frank, from 3,316 in Q1–Q3 2023 to just 1,622 in the same period in 2024.
But in the third quarter of 2024, 92 deals worth $10 million or more were signed, up 8.2 percent from 85 in the previous quarter.
Between January and September of 2024, there were 282 recorded home sales of more than $10 million, as opposed to 277 during the same period in 2023. Sales of homes costing more than $10 million generated $4.5 billion in revenue in total between January and September of 2024.
The third quarter saw 19 transactions totaling $344 million at the Palm Jumeirah, which remained Dubai’s leading location for luxury sales. Dubai Silicon Oasis came in second and Dubai Hills Estate came in third.
Knight Frank data indicates that in Q3 2024, nine transactions totaling over $10 million were made on the Palm Jebel Ali, for a total of $97 million. As a result, the total for Dubai’s second island shaped like a palm tree in 2024 came to $1.1 billion, or 24.4% of the entire amount of the city’s sales of luxury homes this year.
“The momentum in the upper echelons of the market persists. Developers are racing to satisfy the demand for $10 million plus homes, but the rate at which ultra-luxury homes are selling continues to accelerate. $10 million plus listings continue to decline, with a near 51 percent fall during the first nine months of 2024, when compared to the same period last year,” said Faisal Durrani, partner – head of research for Mena at Knight Frank.
“Despite this, sales volumes in this exclusive segment retain their upward trajectory. This highlights the strength and persistence of demand for the city’s most expensive homes, which the ultra-rich continue to secure at record rates. Indeed, this is also reflected in the fact that the ratio of $10-million-plus home sales to listings has climbed to 17.1 percent this year, from 10.7 percent during 2023,” said Durrani.
A house in one of Dubai’s posh neighborhoods sold for an average of $3.5 million in Q3 2024.
With 384 home sales in Q3, The Palm Jumeirah (90.4%) once again accounted for the majority of prime deals. The next highest percentages were for Jumeirah Islands (6.1%), Emirates Hills (2.2%), and Jumeirah Bay Island (1.4%).
“The Palm Jumeirah remains the location of choice for both Dubai’s elite and global high net-worth individuals who continue to zero in on what is arguably the world’s most iconic island. And when you factor for the fact that average transacted prices here for homes priced at over $10 million stand at $2,048 per square foot, it is easy to understand as well the value for money that Dubai presents to international buyers,” said Petri Mannila, partner – head of prime residential UAE, Knight Frank.
“With almost no development sites remaining, Dubai’s latest island developments – the Palm Jebel Ali and Dubai Islands – are rapidly rising as new luxury home hotspots and will soon likely join our prime watch list to sit alongside Tilal Al Ghaf, Jumeirah Golf Estates, Al Barari and Blue Waters,” said Mannila.
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