Posted inNewsResidential

Dubai luxury real estate market booms: Records US$ 1.7 billion home sales in Q1 2024

105 luxury home sales recorded in Q1 2024, up 19% year-on-year with Palm Jumeirah dominating home sales

Dubai luxury real estate market booms: Records US$ 1.7 billion home sales in Q1 2024

105 homes priced over US$ 10 million were sold in Dubai during the first three months of the year, up 19% on Q1 2023, according to the latest analysis from global property consultant, Knight Frank.

Faisal Durrani, Partner – Head of Research, MENA, explained: “The level of deal activity in Dubai continues to strengthen, particularly at the top end of the market, where the near constant stream of international high-net-worth-individuals vying for the city’s most expensive homes persists.”

“The laser-like focus of the global wealthy on Dubai is best reflected in the rapid deterioration in the volume of US$ 10 million+ homes for sale, which has fallen by 59% across the city over the last 12 months to just 864 homes.”

The total value of luxury homes sold during Q1 stands at US$ 1.73 billion, up 6% in Q1 2023 and builds on Dubai’s emergence as the world’s busiest US$ 10 million+ homes market.

Last year, Knight Frank revealed that Dubai recorded 431 home sales above US$ 10 million, nearly 80% higher than the next nearest contender – London (240). New York (211) rounded off the world’s top three most active luxury home markets in 2023.

The Palm Jumeirah registered deals worth US$ 628 million, and dominated the luxury homes market during Q1, accounting for 36.3% of sales by total value. Jumeirah Bay Island (11.1%) and Dubai Hills Estate (7%) followed in second and third place, respectively.

While Palm Jumeirah (39) also led the pack in terms of the total number of luxury homes sold, Palm Jebel Ali (10) and Business Bay (7) registered more high-end home sales than Jumeirah Bay Island or Dubai Hills Estate. 

Dubai Hills Estate climbing the popularity ladder

According to Knight Frank, other markets, away from the headline-grabbing Palm Jumeirah, Jumeirah Bay Island and Emirates Hills are fast rising in prominence amongst luxury home buyers, with Dubai Hills Estate, for instance, standing out as a market to watch.

Will McKintosh, Regional Partner and Head of Prime Residential, MENA, said: “Dubai Hills Estate has quietly for some time been rising up the ranks as not only one of Dubai’s most sought-after markets for domestic buyers, but now luxury home buyers are increasingly active here too.

“The relative proximity to both Downtown and New Dubai, combined with access to international school, excellent neighbourhood facilities and amenities and of course its abundance of green space is quickly making Dubai Hills Estate one of Dubai’s most desirable neighbourhoods. Prices have unsurprisingly responded to the growing demand to live here and have risen by almost 11% in the last 12 months, while the number of homes available for sale has fallen by 75% to just over 1,000 units this past March.”

Knight Frank has previously found in its Destination Dubai 2023 report that access to parks and green space ranks as the most important consideration amongst global HNWI when considering an investment in the emirate.

Luxury real estate: A resilient segment

Dubai’s prime residential market, which includes Palm Jumeirah, Jumeirah Bay Island and Emirates Hills, has also experienced a performance surge, according to Knight Frank.

Durrani concluded: “After growing by 16.3% in 2023, following an extraordinary 44.4% increase during 2022, Dubai’s prime residential market has grown by 26.3% over the last 12 months, easily making it one of, if not the fastest growing prime residential market globally. While these startling growth rates are phenomenal, it doesn’t take away from the fact that Dubai’s luxury homes market remains one of the most affordable in the world.

“Indeed, US$ 1 million secures some 980 square feet of prime residential space in Dubai, compared to just 366 square feet in New York, 355 square feet in London, or 172 square feet in Monaco.”

In conclusion

The world saw an increase of 25,000 ultra-high-net-worth individuals in 2023, with a 4.2% rise from the previous year. As wealth portfolios recovered, wealthy buyers turned to luxury residential property markets, with Dubai emerging as a key destination. Dubai’s consistent rise in living standards and top-notch public safety make it attractive to global high-net-worth individuals. Additionally, Dubai’s commitment to sustainability has positioned it as a leader in the real estate market. As a result, Dubai’s prime residential market is expected to continue growing rapidly in 2024.