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.
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.
In numbers: Tracking the sales of prime properties in Dubai and overseas
Information courtesy: Knight Frank, REIDIN
Total number of $10m+ homes sold in Dubai
| Year | Number of $10m+ home sales |
| 2010 | 11 |
| 2011 | 5 |
| 2012 | 11 |
| 2013 | 20 |
| 2014 | 12 |
| 2015 | 31 |
| 2016 | 15 |
| 2017 | 23 |
| 2018 | 13 |
| 2019 | 22 |
| 2020 | 22 |
| 2021 | 93 |
| 2022 | 224 |
| 2023 | 431 |
| H1|24 | 190 |
—————————————————————————————————————————————————————————
Breakdown of $10m+ home sales in Dubai during H1 2024
| Location | Number of $10m+ home sales |
| Palm Jumeirah | 60 |
| Palm Jebel Ali | 14 |
| Business Bay | 12 |
| Al Wasl | 9 |
| Jumeirah Bay Island | 10 |
| District One (MBR City) | 10 |
| Dubai Hills Estate | 8 |
| Tilal Al Ghaf | 10 |
| Downtown | 9 |
| Emirates Hills | 12 |
| Jumeirah Beach Residence | 2 |
| Al Quoz Second | 4 |
| Al Jadaf | 4 |
| District Eleven (MBR City) | 5 |
| Jumeirah Golf Estates | 4 |
| Dubai Islands | 9 |
| Jumeirah Second | 3 |
| Palm Deira | 4 |
| World Islands | 1 |
—————————————————————————————————————————————————————————
Total value of $10m+ homes sold in Dubai in H1 2024
| Location | Total value of sales ($) | % of $10m+ sales in H1|24 |
| Palm Jumeirah | 992,974,373 | 31.4% |
| Jumeirah Bay Island | 303,120,981 | 9.6% |
| Dubai Hills Estate | 159,809,264 | 5.1% |
| Al Wasl | 157,861,036 | 5% |
| Palm Jebel Ali | 159,382,343 | 5% |
| District One (MBR City) | 216,012,342 | 6.8% |
| Tilal Al Ghaf | 186,185,791 | 5.9% |
| Business Bay | 195,540,923 | 6.2% |
| Emirates Hills | 200,077,657 | 6.3% |
| Downtown Dubai | 119,150,549 | 3.8% |
| Al Quoz Second | 66,626,703 | 2.1% |
| Palm Deira | 45,516,621 | 1.4% |
| Al Jadaf | 47,370,572 | 1.5% |
| World Islands | 21,525,886 | 0.7% |
| Jumeirah Golf Estates | 42,615,804 | 1.3% |
| District Eleven (MBR City) | 52,955,352 | 1.7% |
| Jumeirah Beach Residence | 36,512,262 | 1.2% |
| Jumeirah Second | 47,901,907 | 1.5% |
| Dubai Islands | 109,180,926 | 3.5% |
—————————————————————————————————————————————————————————
Total number of $25m+ homes sold in Dubai
| Year | Number of $25m+ home sales |
| 2015 | 4 |
| 2016 | 2 |
| 2017 | 2 |
| 2018 | 1 |
| 2019 | 2 |
| 2020 | 0 |
| 2021 | 8 |
| 2022 | 28 |
| 2023 | 56 |
| H1|24 | 27 |
—————————————————————————————————————————————————————————
Total number of $10m+ homes sold globally (Q1 2024)
| Rank | City | Number of $10m+ sales |
| 1 | Dubai | 105 |
| 2 | New York | 56 |
| 3 | Palm Beach | 47 |
| 4 | London | 41 |
| 5 | Los Angeles | 37 |
| 6 | Hong Kong | 36 |
| 7 | Miami | 32 |
| 8 | Geneva | 29 |
| 9 | Orange County | 22 |
| 10 | Singapore | 19 |
| 11 | Paris | 2 |
—————————————————————————————————————————————————————————
Total value of $10m+ homes sold globally (Q1 2024)
| Rank | City | Total value of $10m+ sales |
| 1 | Dubai | $1.7bn |
| 2 | New York | $1.2bn |
| 3 | Palm Beach | $1.1bn |
| 4 | Hong Kong | $988m |
| 5 | Geneva | $ 696m |
| 6 | Los Angeles | $672m |
| 7 | London | $601m |
| 8 | Miami | $496m |
| 9 | Orange County | $300m |
| 10 | Singapore | $249m |
| 11 | Paris | $24m |