Dubai’s luxury real estate market’s dream run continued in the first half of this year, as it clocked a 47 per cent year-on-year increase in transactions.
The UAE is projected to attract the highest number of millionaires globally in 2024, driving demand for opulent villas and branded residences. This trend is reflected in the first half of the year, where villa transactions saw a remarkable 52 per cent year-on-year growth and total sales value rose by 66 per cent, according to real estate services agency Engel & Volckers.
Daniel Hadi, CEO of Engel & Völkers Middle East, remarked, “The first half of 2024 has been extraordinary for Dubai’s residential real estate market. The unprecedented growth in sales transactions and value is a testament to Dubai’s resilience, strategic infrastructure investments, and its appeal to global investors. As we look ahead, we are optimistic about the sustained growth and transformation of this dynamic market.”
The influx of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) is driving Dubai’s ultra-luxury real estate market, with H1 2024 recording 196 sales exceeding $10m.
Furthermore, the city leads globally in property sales transactions above this price range, as noted by real estate brokerage firm Allsopp & Allsopp.
In-demand villa locations in Dubai
Among the growing number of prime locations, Palm Jumeirah remains Dubai’s premier luxury community, consistently attracting high-value transactions.
New communities like The Acres, Dubai South, and Haven have given a further boost to off-plan villa sales due to their desirable locations, lifestyle amenities, and investment potential.
Additionally, the secondary market saw increased volumes due to newly handed-over properties in communities like Damac Hills 2 and Tilal Al Ghaf, which garnered significant buyer interest.
A new record
Tilal Al Ghaf set a new record for the most expensive villa sale ever recorded in the area. A seven-bedroom off-plan Lanai Island mansion sold for Dhs105m.
This sale achieved the highest price per square foot in Tilal Al Ghaf (Dhs3,416 per square foot), surpassing the average price for similar properties by 15 per cent, as per a statement by Allsopp & Allsopp, which conducted the sale.
Tilal Al Ghaf, though relatively new to Dubai’s luxury scene, has rapidly established itself as a premier residential address. This sale will elevate the community’s status, positioning it alongside long-established luxury areas like Emirates Hills, Palm Jumeirah, and Mohammed Bin Rashid City, it added.
As Majid Al Futtaim’s first residential development in Dubai, Tilal Al Ghaf is already achieving prices on par with the emirate’s most sought-after communities. Lewis Allsopp, chairman of Allsopp & Allsopp, commented, “Tilal Al Ghaf is one of the most impressive and popular new luxury developments in Dubai, and we are delighted to have achieved this record-breaking sale.”
“This achievement from our Private Office team highlights our ability to consistently deliver exceptional results for our clients. As Dubai’s luxury market continues to grow in demand, I look forward to more impressive transactions from the Private Office on incredible properties.”
The Lanai Islands sale saw price per square foot comparable to luxury properties in Emirates Hills(Dhs3,223 per square foot) and Mohammed Bin Rashid City(Dhs3,027 per square foot) versus similar-sized off-plan projects in South Bay and Damac Lagoons(average prices of Dh1,455 and Dh952 per square foot, respectively).
Emerging communities like Dubai Islands and Palm Jebel Ali are also gaining popularity among affluent buyers, further diversifying options in Dubai’s high-end real estate market.