Dubai’s luxury property sales set new records in 2024, with 435 homes sold for over USD 10 mn, surpassing 2023’s total of 434, according to a press release by Knight Frank. Demand for USD 25 mn+ homes also remained strong, with 4Q 2024 recording 15 transactions, one short of the all-time quarterly high set in 3Q 2023. This surge was driven by strong international demand and Dubai’s rising population, which surpassed 3.8 mn, a 4.6% y-o-y increase.

Luxury home sales peaked in 4Q, with 153 transactions recorded — the highest-ever quarterly figure — accounting for over 35% of the year’s total sales. Dubai’s prime residential market saw average prices rise 6% y-o-y to over AED 6.6k per sqft. Palm Jumeirah homes led the surge, with prices reaching AED 7.3k per sqft, marking a 15% y-o-y increase.

Supply constraints remained a challenge: Luxury property listings dropped 40% y-o-y in 2024, with fewer than 2.5k homes available, down from 4.1k in 2023. While 3Q saw a slight recovery, 4Q listings still declined 14% y-o-y to 805 homes.

Villas remained the cornerstone of the luxury segment, comprising 68.5% of all USD 10 mn+ sales in 2024, up from 52% in both 2022 and 2023. Villa values jumped 20.2% during the year, nearly doubling from 1Q 2020 levels, and signaling persistent supply shortages. Overall, house prices climbed 19.1% y-o-y.

Off-plan luxury sales also dominated, making up 52% of USD 10 mn+ transactions. The top three developers — Omniyat, Nakheel, and Emaar Properties — accounted for 46% of these transactions. Emaar’s The Oasis – Lavita was the year’s most sought-after development, with 29 out of 43 villas sold for over USD 10 mn since launching in 3Q 2024.

By district: Palm Jumeirah topped Dubai’s ultra-luxury market, recording 127 transactions worth nearly USD 2.3 bn, accounting for 29% of all USD 10 mn+ sales and over 32.5% of the market’s total value. Palm Jebel Ali followed with 36 high-end sales in 2024.

In terms of transaction value, Emirates Hills ranked second with USD 514.5 mn in transactions (7.3% of the market), followed by Jumeirah Bay Island (6.7%), District One (6.6%), and Dubai Hills Estate (6.2%).

REMEMBER- Dubai’s broader property market also had a standout year in 2024, recording AED 423.4 bn in residential sales across 168k transactions, up 42.4% y-o-y, according to a previous Springfield Properties report. Off-plan units led the market, accounting for 68% of total sales, while properties priced between AED 1 mn and AED 2 mn saw a 71% surge in demand. Average apartment prices rose 65% since 2020, with villa and townhouse prices more than doubling.

Looking ahead: While price growth is expected to be moderate in 2025, Dubai’s relative affordability compared to other global luxury hubs is expected to keep demand steady in the high-end real estate market, Knight Frank said. Continued wealth migration and supply squeezes are also likely to sustain price appreciation.

REMEMBER- Knight Frank previously forecasted that Dubai’s residential prices will rise by 8% in 2025, down from a 20% surge in 2024, with others forecasting an increase in supply over the next two to three years to contribute to market stabilization.

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