Industry News & Insights

04 Feb 2025

Dubai’s Luxury Real Estate Market Hits New Record with 435 Homes Sold for Over $10M in 2024

Dubai’s Luxury Real Estate Market Hits New Record with 435 Homes Sold for Over $10M in 2024
Palm Jumeirah and Palm Jebel Ali Lead as Top Investment Destinations

Dubai’s luxury real estate market soared to unprecedented levels in 2024, setting a new record for $10 million-plus home sales, according to Knight Frank’s latest analysis. The emirate recorded 435 transactions surpassing $10 million, edging past the 434 deals in 2023 and reaffirming Dubai’s status as the world’s leading market for ultra-luxury residential sales.

A significant boost came in Q4 2024, which saw 153 high-value transactions, marking the highest quarterly performance on record in this segment.

Palm Jumeirah Remains the Prime Luxury Hub

Palm Jumeirah maintained its dominance as Dubai’s top luxury real estate hotspot, recording 127 sales exceeding $10 million—29% of the total transactions. These deals amounted to nearly $2.3 billion in property sales, making up 32.5% of Dubai’s ultra-luxury market value.

Meanwhile, Palm Jebel Ali has been rapidly attracting investor interest, ranking second in transaction volume with 36 deals, underscoring the strong demand for waterfront luxury properties. The first homes on Palm Jebel Ali are set for handover in 2027.

Other Leading Luxury Neighborhoods

In terms of total sales value, Emirates Hills secured second place with $514.5 million in transactions, contributing 7.3% of the market. Following closely were:

  • Jumeirah Bay Island (6.7% market share)
  • District One (6.6%)
  • Dubai Hills Estate (6.2%)

Villas continued to dominate the high-end market, accounting for 68.5% of all luxury transactions—a significant increase from 52% in 2022 and 2023.

Surge in Off-Plan Market & Developer Contributions

The primary (off-plan) market played a significant role in 2024, contributing 52% of all luxury sales. The top three developers—Omniyat, Nakheel, and Emaar Properties—accounted for 46% of these sales, with:

  • Omniyat contributing 19%
  • Nakheel at 16%
  • Emaar Properties at 11%

Emaar’s The Oasis – Lavita, adjacent to Jumeirah Golf Estates, quickly became the most sought-after luxury development of 2024, with 29 out of 43 villas already sold for over $10 million.

Prime Residential Market Sees Steady Growth

Dubai’s prime residential market—encompassing Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands, and Emirates Hills—also witnessed significant growth. In Q4 2024, the average transacted price in these upscale areas reached AED6,626 ($1,804) per square foot, reflecting a 6% increase from Q4 2023.

Palm Jumeirah continued to dominate, accounting for two-thirds of all prime real estate deals, with 105 transactions recorded. The average sales price of properties on Palm Jumeirah surged to AED7,305 ($1,990) per square foot, marking a 15% rise from Q4 2023.

Ultra-Luxury Market Resilience & Supply Trends

While supply levels began recovering in Q3 2024, they remained 14% lower than Q4 2023, with only 805 $10M+ listings available. Overall, the number of ultra-luxury homes listed declined by 40% in 2024, with just 2,490 properties on the market, compared to 4,120 in 2023.

Despite market fluctuations, demand for $25M+ homes remained strong. In Q4 2024, 15 transactions were recorded—just one short of the previous record set in Q3 2023, highlighting the sustained strength of Dubai’s ultra-luxury property sector.

Rental Market Projections

Rental prices are expected to see significant increases, with forecasts predicting:

  • An 18% rise in short-term rental prices
  • A 13%+ increase in long-term lease rates

Dubai’s real estate market continues to thrive, reinforcing its global reputation as a top destination for luxury living and high-net-worth investments.

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