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Wed, Nov 06, 2024 | Jumada al-Awwal 4, 1446 | DXB
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Dubai: Luxury home availability drops by nearly half as millionaires buy them for personal use
The emirate saw 190 homes sold with a value of over $10 million during the first half of 2024
File photo
The number of luxury homes available for sale in Dubai has shrunk by nearly half in the past year due to unprecedented demand from high-net-worth individuals.
According to the data released by global real estate consultancy Knight Frank, the number of properties has fallen by 47 per cent to 2,851 in high-end communities such as Palm Jumeirah, Emirates Hills and Jumeirah Bay Islands.
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This new data shows that buyers are either end-users who want to use it for personal use or those investors who are holding onto their assets expecting prices to rise further in the coming years.
Dubai saw 190 homes sold with a value of over $10 million during the first half of 2024, almost reaching the 189 figures achieved in the first half of last year. Similarly, demand for uber-luxury properties valued at $25 million-plus stayed strong as 15 homes were sold during Q2, taking the tally to 21 for the first half of 2024.
Check the details below:
| Location | Number of homes sold |
| Palm Jumeirah | 60 |
| Palm Jebel Ali | 14 |
| Business Bay | 12 |
| Al Wasl | 9 |
| Jumeirah Bay Island/MBR | 10 each |
| Location | Total value of sales ($million) |
| Palm Jumeirah | 992.97 |
| Jumeirah Bay Island | 303.12 |
| Dubai Hills Estate | 159.80 |
| Al Wasl | 157.86 |
| Palm Jebel Ali | 159.38 |
Source: Knight Frank, Reidin
The UAE has been a top destination for millionaires to relocate to over the past three years. According to Henley & Partners, Dubai was home to 72,500 millionaires, 212 centi-millionaires and 15 billionaires. Dubai has one of the highest growth of millionaires, reaching 78 per cent in the past 10 years from 2013 to 2023.
“The global super-rich remain fixated on Dubai, which is overwhelming the supply of luxury homes in the city. Indeed, the volume of demand for property in Emirates Hills, Jumeirah Bay Island, Jumeirah Islands and The Palm Jumeirah has resulted in a 47 per cent drop in the number of homes available for sale in these areas over the last 12 months,” said Faisal Durrani, partner and head of research for Mena at Knight Frank.
The global real estate consultancy earlier said that private investors were looking to invest $4.4 billion (Dh16.1 billion) in Dubai’s property market, which is quite attractive in terms of price points as compared to other majority cities. However, it offers much higher capital appreciation and rental income in those cities.
End-users in spotlight
Michael Gelpke, CEO at Glam Properties, said recent trends in the UAE's Golden Visa real estate market include increased foreign direct investment, with Dubai's market growth accelerating.
Michael Gelpke
“The investor profile is diversifying, attracting more European and Chinese buyers. There's a noticeable shift towards an end-user market, with investors planning long-term residency. Demand for high-end properties is increasing, and the off-plan property segment is growing consistently.
"Enhanced family benefits and streamlined application processes are making the program more attractive. Community living and mixed-use developments are gaining popularity among Golden Visa holders. These trends reflect the program's success in stimulating the real estate sector and attracting long-term residents to the UAE,” he said.
Akshay Nagdev, Business Head at Foremen Fiefdom, said the current market scene shows a high demand for luxury villas among those looking for spacious and high-end living options.
Akshay Nagdev
“Key locations such as Dubai Marina, Downtown Dubai, and Palm Jumeirah are particularly popular due to their luxurious lifestyles, vibrant city life, and iconic landmarks. These areas also provide proximity to business hubs, making them convenient for many.
"Golden Visa holders who wish to sponsor and bring their families look for larger homes that can accommodate their needs, driving significant interest in such properties. High-end apartments in key districts are also sought after, especially those within gated communities that offer enhanced security and amenities,” said Nagdev.
Top property
According to Knight Frank, Palm Jumeirah maintained the top position with 853 homes sold in the first half of 2024, accounting for 89.3 per cent of the total luxury sales. this was followed by Jumeirah Islands (5.03 per cent), Jumeirah Bay Island (3.56 per cent) and Emirates Hills (1.05 per cent).
Average transacted prices in Dubai’s most affluent neighbourhoods stood at Dh3,706 per square foot during H1 2024, up by 7 per cent year-on-year.
“What is extraordinary about the continued sales growth in Dubai’s $10 million homes market is that it is set against a protracted decline in the number of luxury homes on the market. In fact, the number of $10 million plus home listings fell by 65.5 per cent over the last 12 months to just 460 properties.
"This is a strong sign of the ‘buy-to-hold’ buyer profile that has taken root in the market, with anecdotal evidence continuing to suggest international HNWI are largely focussed on purchasing homes in the city for personal use, rather than to ‘flip’, which was a defining feature of the previous two market cycles,” said Durrani.
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Waheed Abbas
Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.
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