The Palm Jumeirah led Dubai’s luxury market in Q3 with 19 deals worth over US$ 344 million, accounting for 31.2% of sales over US$ 10 million
Provisional Q3 data for Dubai’s residential market has shown an 8.2% quarter-on-quarter increase in the total number of US$ 10 million+ sales to 92 deals, with an average sale price of US$ 15.3 million, according to global property consultancy Knight Frank‘s latest analysis.
Faisal Durrani, Partner – Head of Research, MENA, explained: “The momentum in the upper echelons of the market persists. Developers are racing to satisfy the demand for US$ 10 million-plus homes, but the rate at which ultra-luxury homes sell continues to accelerate. “US$ 10 million plus listings continue to decline, with a near 51% fall during the first nine months of 2024 when compared to the same period last year. Despite this, sales volumes in this exclusive segment retain their upward trajectory. This highlights the strength and persistence of demand for the city’s most expensive homes, which the ultra-rich continue to secure at record rates. Indeed, this is also reflected in the fact that the ratio of US$ 10 million plus home sales to listings has climbed to 17.1% this year, from 10.7% during 2023.”
According to Knight Frank, there has been a sharp fall in US$10 million+ home listings, which fell from 3,316 between Q1- Q3 2023 to just 1,622 in 2024.
This highlights the fast pace at which luxury units are being sold and not returning to the market, which Knight Frank says reflects the ‘buy-to-hold’ and ‘buy-to-live’ mentality now prevalent in Dubai’s luxury homes market.
The Palm Jumeirah remains Dubai’s luxury sales hotspot, registering 19 deals worth over US$ 10 million, totalling US$ 344 million during Q3, equating to 31.2% of US$ 10 million+ sales by total value. Dubai Silicon Oasis (25.4%) and Dubai Hills Estate (12.1%) followed in second and third place, respectively.
Knight Frank’s analysis shows that Dubai Silicon Oasis’s emergence as a luxury sales location this quarter follows several high-value sales at Binghatti Crystals Residences.
Petri Mannila, Partner – Head of Prime Residential UAE, explained: “The Palm Jumeirah remains the location of choice for Dubai’s elite and global high-net-worth individuals who continue to zero in on what is arguably the world’s most iconic island. And when you factor for the fact that average transacted prices here for homes priced at over US$ 10 million stand at US$ 2,048 per square foot, it is easy to understand as well the value for money that Dubai presents to international buyers”.
“With almost no development sites remaining, Dubai’s latest island developments – the Palm Jebel Ali and Dubai Islands – are rapidly rising as new luxury home hotspots and will soon likely join our prime watch-list to sit alongside Tilal Al Ghaf, Jumeirah Golf Estates, Al Barari and Blue Waters.”
Knight Frank’s analysis shows that nine US$10 million+ sales were recorded on the Palm Jebel Ali, totalling US$97 million in Q3 2024. This brings the total for 2024 for Dubai’s second palm-tree-shaped island to US$1.1 bn, representing 24.4% of the total value of luxury home sales in the city so far this year.
GLOBAL LUXURY HOME SALES LEADER
According to Knight Frank, Dubai retained its position as the top market globally for the number of home sales over US$10 million in Q2 2024, with New York (72) and Hong Kong (61) ranking in second and third place, respectively.
In fact, even during the 12-month period ending June 2024, Dubai registered 436 home sales, almost equalling the total combined number of luxury sales in New York (229) and London (214) over the same period.
PRIME HOMES MARKET
Dubai’s prime residential market, which Knight Frank defines as the combined neighbourhoods of the Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands and Emirates Hills has also recorded a jump in sales.
During Q3 2024, 400 deals were registered in the city’s prime locations, compared to 489 during Q3 2023. Knight Frank says this reflects the fall in the number of homes available for sale across the city. Indeed, the number of home listings in the four prime areas declined by 52% during Q3 2024 compared to last year, highlighting that supply is failing to keep pace with the rapidity of sales.
Knight Frank’s analysis also shows a 2-percentage point increase in the sales-to-listings ratio in Dubai’s prime residential market, driven by intensifying demand as well as a decline in new listings.
During Q3 2024, the average transacted price for a home in Dubai’s prime neighbourhoods stood at US$3.5 million.
With 384 home sales, the Palm Jumeirah (90.4%) again accounted for the lion’s share of prime deals in Q3, followed by Jumeirah Islands (6.1%), Emirates Hills (2.2%) and Jumeirah Bay Island (1.4%).
