Dubai: Fewer millionaires willing to sell their luxury homes in 2024

In 2023, Dubai recorded 431 home sales above $10 million, nearly 80 per cent higher than London (240) and New York (211)

Published: Tue 16 Apr 2024, 3:00 PM

Updated: Tue 16 Apr 2024, 6:44 PM

The number of luxury properties with a value of $10 million plus available for sale has dropped by more than half as more millionaires tend to make Dubai their home and fewer are willing to sell their assets.

“The laser-like focus of the global wealthy on Dubai is best reflected in the rapid drop in the volume of $10 million-plus homes for sale, which has fallen by 59 per cent across the city over the last 12 months to just 864 homes,” said Faisal Durrani, partner and head of research for Mena at Knight Frank.

In the post-pandemic period, there is more demand coming from the end-users and long-term investors for the Dubai property market on the back of confidence in the local economy and the government’s handling of Covid-19.

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As reported by Khaleej Times earlier, flipping in the residential market is almost non-existent due to high demand from the end-users and long-term investors as well as conditions by top developers not to sell the property until 30 to 50 per cent of the amount is paid by the buyer.

Demand for luxury property continued unabated in 2024 as Dubai saw 105 homes priced over $10 million (Dh36.7 million) sold in the first three months of 2024, up 19 per cent when compared to the same quarter last year, property consultant Knight Frank said on Tuesday.

“The level of deal activity in Dubai continues to strengthen, particularly at the top end of the market, where the near-constant stream of international high-net-worth-individuals vying for the city’s most expensive homes persists,” said Durrani.

In 2023, Dubai recorded 431 home sales above $10 million, nearly 80 per cent higher than London (240) and New York (211), making them the top three most active luxury home markets in the world.

The total value of $10 million-plus homes sold during the first quarter stood at $1.73 billion, up 6 per cent year-on-year. The Palm Jumeirah registered deals worth $628 million, accounting for 36.3 per cent of sales by total value, followed by Jumeirah Bay Island and Dubai Hills Estate.

Palm Jumeirah (39) also led the pack in terms of the total number of luxury homes sold, followed by Palm Jebel Ali (10) and Business Bay (7).

Prices up 26.3%

Durrani said Dubai’s prime residential market has grown by 26.3 per cent over the last 12 months, easily making it one of, if not the fastest-growing prime residential market globally.

“While these startling growth rates are phenomenal, it doesn’t take away from the fact that Dubai’s luxury homes market remains one of the most affordable in the world. Indeed, US$ 1 million secures some 980 square feet of prime residential space in Dubai, compared to just 366 square feet in New York, 355 square feet in London, or 172 square feet in Monaco,” he said.

Will McKintosh, regional partner and head of prime residential for Mena at Knight Frank, said Dubai Hills Estate has quietly for some time been rising the ranks as not only one of Dubai’s most sought-after markets for domestic buyers, but now luxury home buyers are increasingly becoming active here too.

“The relative proximity to both Downtown and New Dubai, combined with access to international school, excellent neighbourhood facilities and amenities and of course its abundance of green space is quickly making Dubai Hills Estate one of Dubai’s most desirable neighbourhoods. Prices have unsurprisingly responded to the growing demand to live here and have risen by almost 11 per cent in the last 12 months, while the number of homes available for sale has fallen by 75 per cent to just over 1,000 units this past March,” said McKintosh.