Palm Jumeirah and Palm Jebel Ali see influx of investors as Dubai luxury real estate sector sees record value.
Dubai’s Luxury Residential Market Reaches New Heights in 2024 with Record-Breaking $10M+ Home Sales 🏡✨
Dubai’s luxury residential real estate market soared to new records in 2024, surpassing previous milestones with an unprecedented number of $10 million+ home sales, as highlighted in the latest report by Knight Frank.
The emirate achieved 435 transactions exceeding $10 million, slightly edging out the 434 high-value deals recorded in 2023, solidifying Dubai’s reputation as the world’s premier destination for luxury property sales. This record-breaking performance was largely driven by an exceptional Q4, which witnessed 153 transactions—the highest quarterly figure ever recorded for this segment.
Dubai’s Growing Appeal in the Luxury Real Estate Sector 🏙️
Faisal Durrani, Partner and Head of Research, MENA at Knight Frank, remarked, “Despite global economic challenges, Dubai’s status as a hub for international wealth continues to strengthen. Developers are finding it difficult to keep pace with the surging demand for ultra-luxury homes.”
Dubai’s population growth also plays a significant role in driving demand. The city’s population surpassed 3.8 million in 2024, marking an increase of 170,000 people (4.6%) in just one year. This population surge fuels housing demand across all price segments.
House prices experienced a notable rise of 19.1% in 2024, positioning them 13.1% above the 2014 peak. Villas remain the focal point for global high-net-worth individuals, with villa values climbing by 20.2% last year—an astonishing 99.8% increase compared to Q1 2020 levels.
Palm Jumeirah: The Epicenter of Luxury Sales 🌴
Palm Jumeirah held its ground as the top luxury sales hotspot, with 127 transactions above $10 million, representing 29% of total luxury sales in 2024. These deals amounted to nearly $2.3 billion, accounting for 32.5% of Dubai’s $10 million+ sales by total value.
Emerging as a strong contender, Palm Jebel Ali secured second place with 36 transactions, highlighting the growing demand for luxury waterfront properties. The first homes on Palm Jebel Ali are expected to be delivered by 2027, reflecting the island’s rapid development.
When it comes to transaction value, Emirates Hills ranked second with $514.5 million in sales, capturing 7.3% of the luxury market. Jumeirah Bay Island, District One, and Dubai Hills Estate followed closely, contributing 6.7%, 6.6%, and 6.2%, respectively, to the luxury property landscape.
Villas dominated the luxury segment, accounting for 68.5% of all deals, showcasing robust growth compared to 52% in 2022 and 2023. This surge reflects Dubai’s increasing prominence as a global luxury real estate hub, particularly among international high-net-worth individuals (HNWIs).
Dubai’s Evolution as a Global Luxury Hub 🌍
Petri Mannila, Partner and Head of Prime Residential, UAE, commented, “Dubai’s rise as the leading market for luxury homes is remarkable, considering the relatively young age of its real estate sector. The influx of ultra-wealthy residents relocating with their families and businesses has fueled this extraordinary growth.”
In 2024, 52% of all luxury sales occurred in the primary (off-plan) market, with top developers Omniyat, Nakheel, and Emaar Properties dominating the scene. Together, they accounted for 46% of luxury transactions, with Omniyat contributing 19%, Nakheel 16%, and Emaar 11%.
Emaar’s The Oasis – Lavita, launched in Q3 2024 near Jumeirah Golf Estates, quickly became the year’s most sought-after luxury development. Out of 43 villas, 29 have already been sold for over $10 million, underlining its popularity among elite buyers.
Surging Prices in Dubai’s Prime Residential Market 💸
Dubai’s prime residential areas—Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands, and Emirates Hills—experienced significant price growth. In Q4 2024, average property prices in these neighborhoods reached AED 6,626 ($1,804) per square foot, marking a 6% increase from Q4 2023.
Palm Jumeirah maintained its dominance with 105 prime transactions, representing two-thirds of all prime deals. The average price per square foot rose to AED 7,305 ($1,990), reflecting a 15% increase compared to the same period in 2023.
Mannila added, “The demand for $10 million+ homes remains strong despite the shrinking supply of luxury properties. Since mid-2023, the availability of ultra-luxury homes has declined, making it challenging for developers to meet the growing demand from both local elites and global HNWIs.”
Luxury Listings and Market Trends 📊
While the supply of luxury homes showed signs of recovery in Q3 2024, the total number of $10 million+ listings in Q4 stood at 805, representing a 14% decrease from Q4 2023. Overall, the number of high-end listings dropped by 40% in 2024, with only 2,490 properties available compared to 4,120 in 2023.
Despite fluctuations earlier in the year, the demand for ultra-luxury properties priced above $25 million remained resilient. In Q4 2024, transactions rebounded strongly with 15 high-value deals, just one shy of the previous record set in Q3 2023. This underscores the enduring strength of Dubai’s ultra-luxury property market.
