According to global real estate consultancy Knight Frank, the number of properties in Dubai's high-end neighborhoods like Palm Jumeirah, Emirates Hills, and Jumeirah Bay Islands decreased by 47% to 2,851 units in the first half of 2024.
This trend reflects the primary purposes of buyers: either end-users for personal use or investors holding assets anticipating further price increases in the coming years. In the first half of 2024, Dubai sold 190 luxury homes valued at over $10 million, nearly matching the 189 units sold in the same period last year. Similarly, demand for ultra-luxury homes priced above $25 million remained strong, with 15 sales in the second quarter and 21 in the first half of 2024.
The UAE has been the top destination for millionaire migration globally for three consecutive years. According to Henley & Partners, Dubai currently hosts 72,500 millionaires, 212 centi-millionaires, and 15 billionaires. This makes Dubai one of the fastest-growing cities for millionaires, with a 78% increase over the past decade.
Faisal Durrani, Partner and Head of Research at Knight Frank Middle East, said, “Global ultra-high-net-worth individuals continue to focus on Dubai, creating a supply shortage in the luxury property market. Over the past 12 months, demand for properties in Emirates Hills, Jumeirah Bay Island, and Palm Jumeirah has surged, reducing available homes for sale by 47% in these areas.”
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Furthermore, Dubai's prices remain attractive compared to most international metropolises, offering higher capital appreciation and rental income. Michael Gelpke, CEO of Glam Properties, noted that the UAE's Golden Visa program has stimulated real estate market growth, attracting more foreign direct investment, particularly from European and Chinese buyers. Investors are showing a clear trend of planning long-term residency, driving continuous demand for high-end properties.
Against this backdrop, the end-user market has also seen a significant shift. More buyers are favoring high-end communities and mixed-use developments for their convenience and multifunctionality. Akshay Nagdev, Business Head at Foren Fiefdom, stated that the demand for luxury villas is particularly high in key locations like Dubai Marina, Downtown Dubai, and Palm Jumeirah, which are prized for their luxurious lifestyle, vibrant city atmosphere, and iconic landmarks.
Knight Frank's data shows that Palm Jumeirah maintained its top position in the first half of 2024 with 853 residential sales, accounting for 89.3% of luxury sales. Following were Jumeirah Islands (5.03%), Jumeirah Bay Island (3.56%), and Emirates Hills (1.05%). The average transaction price in these communities was AED 3,706 per square foot, a 7% year-on-year increase.
This indicates a strong market signal that "buy-to-hold" buyers now dominate the market, focusing on purchasing homes in Dubai for personal use rather than for resale, a defining feature of previous market cycles.
Going forward, with the continued influx of high-net-worth individuals and growing demand for luxury homes, Dubai's luxury property market is set to maintain its global appeal. Durrani of Knight Frank stated, “The extraordinary aspect of the continued growth in Dubai's $10 million-plus residential market sales is that it contrasts with the ongoing decline in the number of luxury homes on the market. This indicates strong confidence and investment interest in Dubai's luxury property market from international high-net-worth individuals.”
