The number of luxury property listings in Dubai experienced a decline during the third quarter of 2024, as demand continued to surpass supply. In Q3 2024, 400 transactions were recorded in the city's prime areas, a decrease from the 489 deals in Q3 2023. This drop indicates a reduction in the availability of homes for sale across Dubai.
The number of home listings in the four key areas decreased by 52 percent during Q3 2024 compared to the same period in the previous year, underscoring the supply's inability to match the pace of sales. There was a significant drop in listings for homes priced at $10 million or more, falling from 3,316 between Q1-Q3 2023 to just 1,622 in 2024, according to Knight Frank.
Despite this, 92 deals worth $10 million or more were completed in the third quarter of 2024, up 8.2 percent from the previous quarter's 85 deals. A total of 282 home sales exceeding $10 million were recorded from January to September 2024, compared to 277 during the same period in 2023. The total value of homes sold at $10 million or more reached $4.5 billion between January and September 2024.
The Palm Jumeirah maintained its position as Dubai's luxury sales leader in the third quarter, with 19 deals worth over $10 million, totaling $344 million. Dubai Silicon Oasis and Dubai Hills Estate followed in second and third place, respectively. Knight Frank's data revealed that nine sales worth more than $10 million were recorded on Palm Jebel Ali, amounting to $97 million in Q3 2024. This brought the total for 2024 for the second palm-shaped island in Dubai to $1.1 billion, representing 24.4 percent of the total value of luxury home sales in the city so far this year.
"The momentum in the upper echelons of the market remains strong. Developers are working hard to meet the demand for homes priced at $10 million or more, but the rate at which these ultra-luxury homes are selling continues to accelerate. Listings for homes at $10 million or more have decreased by nearly 51 percent during the first nine months of 2024 compared to the same period last year," said Faisal Durrani, partner and head of research for Mena at Knight Frank.
"Despite this, sales volumes in this exclusive segment continue to rise. This highlights the enduring strength of demand for the city's most expensive homes, which the ultra-rich are securing at record rates. This is also reflected in the fact that the ratio of $10-million-plus home sales to listings has increased to 17.1 percent this year, from 10.7 percent in 2023," added Durrani.
The average transaction price for a home in Dubai's prime neighborhoods stood at $3.5 million during Q3 2024. With 384 home sales, the Palm Jumeirah accounted for 90.4 percent of prime deals in Q3, followed by Jumeirah Islands (6.1 percent), Emirates Hills (2.2 percent), and Jumeirah Bay Island (1.4 percent).
"The Palm Jumeirah remains the preferred location for Dubai's elite and global high net-worth individuals, who are drawn to what is arguably the world's most iconic island. When considering that the average transaction price for homes priced over $10 million here is $2,048 per square foot, it's clear why Dubai offers excellent value for international buyers," said Petri Mannila, partner and head of prime residential UAE at Knight Frank.
"With almost no development sites left, Dubai's newest island developments – Palm Jebel Ali and Dubai Islands – are quickly emerging as new luxury hotspots and will likely soon join our prime watch list alongside Tilal Al Ghaf, Jumeirah Golf Estates, Al Barari, and Blue Waters," concluded Mannila.
