Despite the supply constraints, Dubai’s prime residential market has seen strong price appreciation, with listings for properties over $10 million dropping by 65.5% in the last year.
Dubai, the preferred destination for the world’s wealthy, is experiencing an unprecedented shortage of high-end properties as demand from ultra-wealthy buyers continues to outpace available inventory.
Listings Plummet by 47%
Listings from prime residential properties in Dubai’s most sought-after neighbourhoods have plummeted by 47 percent over the past year, highlighting a growing imbalance between supply and demand in the emirate’s luxury housing sector.
Ultra-High-End Segment Booms
The surge in demand is particularly evident in the ultra-high-end segment of the market. Dubai recorded 190 home sales priced above $10 million in the first half of 2024, nearly matching the 189 such transactions seen in the entirety of the first half of 2023.
Palm Jumeirah Dominates Luxury Real Estate Landscape
The Palm Jumeirah continues to dominate Dubai’s luxury real estate landscape, accounting for 89.3 percent of prime deals in the first half of 2024 with 853 home sales.
Supply Crunch Hits $10 Million Plus Category
The scarcity of available properties is most acute in the $10 million-plus category, where listings have plummeted by an astonishing 65.5 percent over the past 12 months to just 460 properties.
Robust Demand for Luxury Homes
The growth in $25 million-plus home sales has increased by 25 percent in the second quarter of 2024 compared to the first quarter.
Average Transacted Prices Reach AED 3,706 per Square Foot
Despite the supply constraints, Dubai’s prime residential market has seen strong price appreciation. Average transacted prices in the emirate’s most affluent neighborhoods reached AED 3,706 per square foot during the first half of 2024, representing a 7 percent increase compared to the same period in 2023.
Shift in Buyer Behaviour
This sustained growth was attributed to a shift in buyer behaviour, with many international high-net-worth individuals now viewing Dubai real estate as a long-term investment rather than a speculative opportunity.
Key Findings
- 47% drop in prime residential property listings over the past year
- 65.5% decrease in $10 million+ property listings
- 190 home sales above $10 million in H1 2024, nearly matching all of H1 2023
- 25% increase in $25 million+ home sales in Q2 2024 compared to Q1
Market Trends
- Palm Jumeirah dominates luxury market with 89.3% of prime deals
- Average transacted prices in affluent areas reached AED 3,706 per square foot (7% YoY increase)
- Shift towards ‘buy-to-hold’ strategy among international high-net-worth individuals
Factors Driving Demand
- Global super-rich focusing on Dubai
- $4.4 billion of global private capital targeting Dubai’s residential market (76% increase from 2023)
- Dubai seen as long-term investment rather than speculative opportunity
JobXDubai 
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