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Dubai: Luxury property sales increase; market listings drop as demand outpaces supply

The number of home listings in four prime areas declined by 52 per cent during Q3 2024, when compared to the same period last year

The number of luxury property listings in Dubai dropped in the third quarter of 2024 as demand continued to outpace supply.

During Q3 2024, 400 deals were registered in the city’s prime locations, compared to 489 during Q3 2023. This reflects the fall in the number of homes available for sale across the city.

The number of home listings in the four prime areas declined by 52 per cent during Q3 2024, when compared to the same period last year, highlighting that supply is failing to keep pace with the rapidity of sales.

There was a sharp fall in $10 million-plus home listings which fell from 3,316 between Q1- Q3 2023 to just 1,622 during the same period in 2024, according to Knight Frank.

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However, a total of 92 deals with a value of $10-million-plus were signed in the third quarter of 2024 compared to 85 in the previous quarter, up 8.2 per cent.

A total of 282 home sales of over $10 million were recorded between January and September 2024 compared to 277 during the same period in 2023. The total homes sold with a value of $10-million-plus reached $4.5 billion between January and September 2024.

The Palm Jumeirah remained Dubai’s luxury sales hotspot in the third quarter, registering 19 deals worth over $10 million, totalling $344 million during Q3. Dubai Silicon Oasis and Dubai Hills Estate followed in second and third place, respectively.

Knight Frank’s data showed that nine sales worth more than $10 million were recorded on the Palm Jebel Ali, totalling $97 million in Q3 2024. This brought the total for 2024 for Dubai’s second palm-tree-shaped island to $1.1bn, representing 24.4 per cent of the total value of luxury home sales in the city so far this year.

“The momentum in the upper echelons of the market persists. Developers are racing to satisfy the demand for $10 million plus homes, but the rate at which ultra-luxury homes are selling continues to accelerate. $10 million plus listings continue to decline, with a near 51 per cent fall during the first nine months of 2024, when compared to the same period last year,” said Faisal Durrani, partner – head of research for Mena at Knight Frank.

“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 $10-million-plus home sales to listings has climbed to 17.1 per cent this year, from 10.7 per cent during 2023,” said Durrani.

The average transacted price for a home in Dubai’s prime neighbourhoods stood at $3.5 million during Q3 2024.

With 384 home sales, the Palm Jumeirah (90.4 per cent) once again accounted for the lion’s share of prime deals in Q3, followed by Jumeirah Islands (6.1 per cent), Emirates Hills (2.2 per cent) and Jumeirah Bay Island (1.4 per cent).

“The Palm Jumeirah remains the location of choice for both 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 $10 million stand at $2,048 per square foot, it is easy to understand as well the value for money that Dubai presents to international buyers,” said Petri Mannila, partner – head of prime residential UAE, Knight Frank.

“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,” said Mannila.

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