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Sun, Dec 01, 2024 | Jumada al-Awwal 30, 1446 | DXB
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Dubai's ultra-luxury real estate market to continue its record pace of growth
Year-to-date figures have already crossed full year 2023 sales
A view of the Palm Jumeirah, one of the key locations of the ultra luxury real estate market in Dubai. — AFP file
Dubai, a city synonymous with opulence and grandeur, continues to captivate the world with its ultra-luxury real estate market.
As we draw curtains on 2024, this dynamic sector shows no signs of slowing down, attracting discerning investors and homebuyers from across the globe1. From the iconic Palm Jumeirah to the prestigious Emirates Hills, Dubai’s luxury real estate landscape remains as diverse as it is lavish.
According to data from Betterhomes, by November 2024, Dubai’s luxury real estate market recorded 2,405 prime sales (properties valued over Dh15 million), surpassing the total 2,354 prime sales recorded in 2023, with a full month remaining in the year.
The most expensive apartment sale of the year is a 5-bedroom unit at The One Residences, Palm Jumeirah, sold for Dh240.5 million in September 2024. This was a ready property sale. The most expensive villa sale of the year is a 7-bedroom villa at EOME Residences, Palm Jumeirah, sold for Dh203 million in September 2024. This was an off-plan property sale.
“Wealth in the modern age is increasingly mobile, and these figures come as no surprise to us. They highlight Dubai’s enduring appeal to high-net-worth and ultra-high-net-worth individuals, driven by key pull factors such as ease of doing business, safety, political stability, and an exceptional quality of life—ideal for living, working, and raising a family. Additionally, Dubai is benefiting from push factors in other regions, such as political instability, shifting tax policies, or changes to non-domicile regulations in cities like London, further solidifying its position as a global hub for affluent individuals,” Betterhomes’ managing director Louis Harding told Khaleej Times.
Betterhomes’ managing director Louis Harding
Earlier this year, Dubai announced its real estate strategy, which aims to double the real estate sector’s contribution to Dubai’s GDP to Dh73 billion, increase real estate transactions by 70 per cent to reach Dh1 trillion by 2033, and grow the value of real estate portfolios twentyfold to Dh20 billion.
Overall, data from the Dubai Land Department (DLD) shows the total value of real estate transactions in the first half of 2024 reached Dh177.4 billion ($48.3 billion), reflecting a 25 per cent increase compared to the same period in 2023. This rapid growth is attributed to a combination of factors such as Expo 2020’s legacy impact, a recovering global economy, and Dubai’s increasing appeal as a safe haven for investors amid global uncertainties.
A chart sourced from DXBinteract.com reveals that 19,765 properties Dubai priced above Dh5 million will be available for buyers over the next few years. This is about seven per cent of the total delivery pipeline of 283,928 units expected to be handed over in the coming years.
“These numbers underscore a restricted supply of ultra-luxury properties, with the majority of units concentrated in the lower end of the high-value market. Properties priced above Dh30 million represent less than 1 per cent of the total supply, indicating a highly exclusive and limited market. This data suggests that the ready ultra-luxury market will remain limited in supply while demand is expected to stay strong for at least the next two to three years,” Firas Al Msaddi, CEO of fäm Properties, told Khaleej Times.
Firas Al Msaddi, CEO of fäm Properties
Beyond that, the balance of supply and demand will depend on the reception of new projects. However, Dubai’s appeal as an irresistible destination for millionaires and billionaires positions this market segment for continued strength, Al Msaddi stressed. “If the forecasted inflow of approximately 6,500 ultra-high-net-worth individuals (UHNWIs) per year holds true through 2024-2026, totalling 19,500 newcomers, this segment is likely to experience steady demand, supporting price appreciation,” he added.
Looking ahead, experts say that high-end properties will continue to be a focal point in Dubai’s real estate market in 2025. “As we approach 2025, the ultra-luxury real estate market in Dubai continues to demonstrate remarkable resilience and growth. Properties priced above $5 million have consistently accounted for over 40 per cent of our annual sales, underscoring the sustained demand among high-net-worth individuals. This segment has consistently outperformed the broader market, reflecting Dubai’s status as a premier destination for luxury living,” Driven Properties’ CEO, Abdullah Alajaji, told Khaleej Times.
Driven Properties’ CEO, Abdullah Alajaji
“Dubai remains a safe haven for investors seeking stability. The city’s strategic location and favorable business environment continue to attract capital from regions experiencing geopolitical uncertainty. Despite significant price increases, Dubai’s property values still remain attractive compared to global counterparts, reinforcing our confidence in the long-term potential of the market,” he added.
The luxury property segment recorded a 35 per cent year-on-year increase in transaction volume during 2024, and this trend shows no signs of slowing down. “Areas like Palm Jumeirah, Emirates Hills, and Bluewater’s Island are expected to see continued demand from ultra-high-net-worth individuals (UHNWIs), particularly those from Europe and Asia. The average price per square foot in these luxury areas is projected to rise by 10-12 per cent in 2025,” said Arash Jalili, CEO and Founder, Unique Properties.
Somshankar Bandyopadhyay
Somshankar Bandyopadhyay is a News Editor with close to three decades of experience. Currently, he manages the business section, ensuring that the top economic and business news of the day reaches its readers.
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