Dubai sets new record in $10m home sales in 2024

Dubai has set a record in the sale of homes valued at more than $10 million in 2024 as the demand for luxury homes continues to remain strong in the emirate amid an influx of ultra rich.

The emirate, the commercial and tourism centre of the Middle East, recorded 435 home sales valued above $10 million last year, up from 434 home sales in 2023 in the same category, with the total value of deals reaching $7 billion, Knight Frank said on Monday.

By the end of the third quarter, Dubai exceeded other hot spots including New York, Hong Kong and Los Angeles in $10-million home sales.

Palm Jumeirah retained the top spot, with 127 deals, followed by the Palm Jebel Ali at 36, Emirates Hills with 31 home sales and District One and the Oasis with 29 deals each, according to a report by the consultancy.

Other areas also recorded significant sales, including Dubai Hills Estate, Tilal Al Ghaf, Dubai Islands, Business Bay, Jumeirah Bay Island and Downtown Dubai.

In terms of value, Palm Jumeirah is at the top of the ranking with $2.3 billion worth of sales followed by Emirates Hills and Jumeirah Bay Island with sales amounting to $514.5 million and $470 million, respectively.

“Despite macroeconomic headwinds, Dubai’s attractiveness as a hub for international wealth continues to grow, with developers struggling to match the pace of demand for ultra-luxury residences,” Faisal Durrani, partner and head of research, Mena at Knight Frank, said.

“The magnetic attraction of the city is also reflected in the fact that Dubai’s population has crossed the 3.8 million mark, up by around 170,000, or 4.6 per cent, during 2024 alone, which continues to create new demand for housing at all price points.”

The latest data comes as Dubai’s property market continues to perform strongly amid government initiatives such as residency permits for retired and remote workers as well as the expansion of the 10-year golden visa programme and overall growth in the UAE’s economy on diversification efforts.

Dubai recorded real estate deals worth Dh761 billion last year, up 20 per cent compared to 2023, with the total number of transactions for the one year increasing by 36 per cent to reach 226,000, the Dubai Media Office said in a statement last month.

The influx of high-net-worth individuals is also boosting the property market.

Dubai is home to the Middle East's highest concentration of resident millionaires at 72,500 and ranked as the 21st wealthiest city in the world, a report found last year.

The city has recorded a 78 per cent growth in its millionaire population over the past 10 years, according to Henley & Partners, which tracks private wealth and investment migration trends worldwide, and global intelligence provider New World Wealth.

Dubai is home to 212 centi-millionaires (people with a net worth of $100 million or more in investable assets) and 15 billionaires, the research found.

The strong demand also sent home prices surging by 19.1 per cent in 2024, according to Knight Frank. This was 13.1 per cent above peak levels recorded in 2014.

Villas accounted for 68.5 per cent of all luxury deals in 2024, up from up 52 per cent of sales above $10 million in 2022 and 2023, “driven particularly by growing demand from international high net worth individuals”, Knight Frank said.

Luxury sales mainly occurred in the off-plan market, with Omniyat, Nakheel and Emaar Properties accounting for a combined 46 per cent of the transactions.

Dubai's $10 million homes market “has seen extraordinary sales growth despite a prolonged decline in the availability of luxury homes”, Petri Mannila, partner and head of prime residential, UAE at Knight Frank, said.

“Since mid-2023, the supply of luxury properties has steadily decreased as developers struggled to meet the surging demand from both Dubai's elite and the global HNWI”.

In 2024, the total number of homes valued at more than $25 million sold in Dubai reached 46, down from 56 in the previous year.