Dubai’s luxury property market faced a significant decline in listings during Q3 2024, as demand continued to outpace supply. The number of home listings in prime areas dropped by 52% compared to the same period in 2023, highlighting the shortage of properties available for sale. Despite this, 400 luxury property deals were registered in Q3 2024, compared to 489 during the same period last year, showcasing a slight dip in transaction volumes. The overall market trend points to supply not keeping pace with the speed of sales, particularly in high-demand areas like Palm Jumeirah, Dubai Silicon Oasis, and Dubai Hills Estate.
Homes priced at over $10 million experienced a sharp decline in listings, falling from 3,316 in Q1-Q3 2023 to just 1,622 in 2024. However, the third quarter of 2024 saw 92 luxury home deals worth over $10 million, up 8.2% from the previous quarter’s 85. Between January and September 2024, a total of 282 homes valued at $10 million or more were sold, compared to 277 in the same period last year, reaching a combined value of $4.5 billion. The Palm Jumeirah continued to dominate as the city’s top luxury sales hotspot, recording 19 deals worth $344 million in Q3 alone. Meanwhile, Palm Jebel Ali emerged as a new luxury destination with nine sales totaling $97 million in the same quarter.
The decline in listings has pushed developers to race in meeting the demand for ultra-luxury homes. This trend is further underscored by the rising ratio of $10-million-plus home sales to listings, which climbed to 17.1% in 2024, up from 10.7% last year. The average transacted price for homes in prime neighborhoods stood at $3.5 million during Q3 2024. With almost no development sites left in traditional luxury areas, emerging locations like Palm Jebel Ali and Dubai Islands are quickly rising as new hotspots for high-end residential investments. Knight Frank expects these areas to join other sought-after locations like Tilal Al Ghaf, Jumeirah Golf Estates, and Blue Waters in attracting global high-net-worth individuals looking for value in Dubai’s real estate market.
Source: Khaleej Times
