Knight Frank: Dubai luxury residential market sets new record with 435 US$ 10 million home sales in 2024

Dubai's luxury residential market achieved new heights in 2024, setting a new record for US$ 10 million+ home sales, according to the latest analysis from global property consultant, Knight Frank. The emirate recorded 435 sales above US$ 10 million, surpassing the 434 US$ 10 million+ transactions registered during 2023, further cementing Dubai’s position as the world’s leading market for luxury home sales.

 

The total number of sales above US$ 10 million in 2024 was bolstered by a remarkable performance in Q4, which saw 153 deals – the highest quarterly figure on record for this segment.

 

Faisal Durrani, Partner – Head of Research, MENA, explained: “Despite macroeconomic headwinds, Dubai’s attractiveness as a hub for international wealth continues to grow, with developers struggling to match the pace of demand for ultra-luxury residences.

 

“The magnetic attraction of the city is also reflected in the fact that Dubai’s population has crossed the 3.8 million mark, up by around 170,000, or 4.6%, during 2024 alone, which continues to create new demand for housing at all price points. Indeed, last year, house prices rose by 19.1%, leaving them 13.1% above the 2014 peak. It’s villas though where the attention of the global super-rich remains focussed, with values rising by 20.2% last year, reflecting a 99.8% uplift on Q1 2020 levels”.

 

US$ 10 MILLION+ HOMES MARKET

 

The Palm Jumeirah remains Dubai’s luxury sales hotspot, recording 127 deals (29% of the total volume) worth over US$ 10 million in 2024, amounting to nearly US$ 2.3 billion of property sales and accounting for 32.5% of Dubai’s US$ 10 million+ sales by total value.

 

Dubai’s second palm-tree-shaped island, the Palm Jebel Ali, has been rapidly gaining momentum, finishing second in transaction volume with 36 deals. This underscores the immense appetite in the marketplace for luxury waterfront properties. The first properties on Palm Jebel Ali are expected to be handed over in 2027.

 

In terms of value, Emirates Hills ranked second, with US$ 514.5 million in transactions (7.3% of the luxury market). Jumeirah Bay Island, District One, and Dubai Hills Estate followed, contributing 6.7%, 6.6%, and 6.2% of the luxury market, respectively.

 

Villas accounted for 68.5% of all luxury deals, reflecting robust growth in this property type as Dubai strengthens its position as a global hub for luxury real estate, driven particularly by growing demand from international high net worth individuals. By comparison, villas made up 52% of sales above US$10 million in 2022 and 2023.

 

Petri Mannila, Partner – Head of Prime Residential, UAE, added: “Dubai has emerged as the world’s leading market for luxury home sales, an enviable position given the relatively young age of the market. The explosive arrival of the city on the luxury homes market stage coincides with an influx of ultra rich residents who are relocating to the emirate with their families and businesses”.

 

52% of all luxury sales in 2024 occurred in the primary (off-plan) market, with the top three developers—Omniyat, Nakheel, and Emaar Properties—accounting for a combined 46% of these transactions, representing 19%, 16%, and 11% of luxury sales, respectively.

 

Emaar's The Oasis – Lavita, located adjacent to Jumeirah Golf Estates, launched in Q3 2024 and has already emerged as the most popular luxury development of 2024, with 29 out of 43 villas already sold for over US$ 10 million, according to Knight Frank.

 

PRIME HOMES MARKET

 

Dubai’s prime residential market, which Knight Frank defines as the Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands and Emirates Hills, has experienced a surge in performance as well.

 

During Q4 2024, average transacted prices in Dubai’s most affluent neighbourhoods reached AED 6,626 per square foot, marking a 6% increase compared to Q4 2023. The Palm Jumeirah continued to dominate the prime market, accounting for two-thirds of all prime deals with 105 transactions. The average sales price of homes on the Palm Jumeirah rose to AED 7,305 per square foot, reflecting a 15% increase from Q4 2023.

 

Mannila continued: “Dubai's US$ 10 million homes market has seen extraordinary sales growth despite a prolonged decline in the availability of luxury homes. Since mid-2023, the supply of luxury properties has steadily decreased as developers struggled to meet the surging demand from both Dubai's elite and the global HNWI”.

 

Knight Frank says while the listed supply began to recover in Q3 2024, showing slow but steady growth, the Q4 total of 805 US$ 10 million+ listings remains 14% lower than Q4 2023. Overall, the number of homes priced above US$ 10 million dropped by 40% in 2024, with just 2,490 properties listed compared to 4,120 in 2023.

 

US$ 25 MILLION+ HOMES MARKET

 

Demand at the very top of the market remains resilient, with US$ 25 million+ home sales showing remarkable consistency despite fluctuations earlier in the year. The number of transactions rebounded strongly in Q4 2024, reaching 15 deals – just one deal short of the previous record set in Q3 2023, underscoring the enduring strength of Dubai's ultra-luxury property market.