Dubai’s high-end property market is defying expectations. Despite a significant drop in the number of luxury homes available, sales remain strong, according to a new report by Knight Frank.
The data, covering the first half of 2024, shows that 190 properties worth $10 million or more were sold, generating a total value of $3.2 billion. This is nearly identical to the performance in the same period of 2023 (189 properties, $3.3 billion).
Dubai’s Luxury Market Heats Up
Intriguingly, this stability comes amidst a staggering 65.5% year-on-year decrease in available luxury listings during the second quarter. Knight Frank’s Head of Research for the Middle East and North Africa (MENA) region, Faisal Durrani, interprets this trend as a shift in buyer behavior.
“This is a strong sign of the ‘buy-to-hold’ buyer profile that has taken root in the market,” Durrani is quoted as saying in the report. He suggests that wealthy international buyers are increasingly seeking properties for personal use rather than short-term investment flips, a common strategy in previous market cycles.
Dubai, the UAE’s bustling trade and tourism hub, continues to attract a growing number of high-net-worth individuals. This trend, coupled with the city’s ambitious economic diversification plans, is fueling the demand for luxury property.
The report also highlights Palm Jumeirah, the iconic palm-shaped artificial island, as the top performer in the second quarter. This prestigious area saw 21 sales of $10 million-plus properties, accounting for 26% of all such transactions during the period.
Furthermore, sales of ultra-luxury properties exceeding $25 million witnessed a 25% jump in the second quarter compared to the first three months of the year. This segment saw a total of 15 homes sold.
Dubai’s dominance in the global luxury property market is further solidified by the report’s revelation that the city held the top spot in 2023 for sales of $10 million-plus homes, outperforming second-placed London by a significant margin (nearly 80%).
Looking ahead, Dubai’s luxury property market appears poised for continued growth, fueled by a combination of strong demand from international buyers and a limited supply of high-end listings.
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