Dubai’s luxury residential market has continued to demonstrate remarkable resilience in 2024, setting a new record for high-end property sales. Despite macroeconomic challenges, Dubai saw an impressive number of transactions for homes priced above $10 million, with 435 sales recorded—just surpassing the 434 deals that took place in 2023, according to a recent report from global property consultant Knight Frank.

Growing Demand Amid Global Wealth Shifts

Faisal Durrani, Partner and Head of Research, MENA at Knight Frank, attributes this growth to the increasing global attraction of Dubai as a hub for international wealth. Despite challenges, Dubai's allure continues to soar, with ultra-wealthy individuals seeking premium residences in this dynamic city. Durrani emphasized that the city’s population surpassed the 3.8 million mark in 2024, an increase of 170,000 people (or 4.6% year-on-year), which has, in turn, generated even more demand across all price segments.

"The magnetic attraction of the city is also reflected in the fact that Dubai's population continues to grow, creating new demand for housing across all price points," Durrani noted. This sustained demand is pushing developers to keep pace with the growing appetite for ultra-luxury residences.

Record-Breaking Fourth Quarter

The fourth quarter of 2024 marked a historic peak for the market, with 153 luxury deals taking place, making it the highest quarterly figure on record for high-end property sales. Over the past year, house prices in Dubai's luxury segment rose by 19.1%, with villas seeing an even stronger growth rate of 20.2%. These price increases reflect Dubai's growing prominence as a global center for ultra-luxury living, showcasing a 99.8% increase compared to the first quarter of 2020.

Palm Jumeirah Reigns Supreme

As expected, Palm Jumeirah maintained its status as the top luxury sales hotspot in Dubai. The iconic island recorded 127 transactions for properties worth over $10 million in 2024, accounting for 29% of the total luxury sales volume in the city. The total value of these transactions amounted to nearly $2.3 billion, representing 32.5% of the total value of Dubai’s $10 million-plus sales in 2024.

Following closely behind in transaction volume was Palm Jebel Ali, a rapidly developing area that completed 36 high-end deals. In terms of sales value, Emirates Hills ranked second with $514.5 million in transactions, followed by other prestigious communities such as Jumeirah Bay Island, District One, and Dubai Hills Estate, which together contributed to over 19% of the overall luxury market.

Villas Dominate Luxury Sales

A significant trend that continues to emerge in Dubai’s luxury market is the dominance of villas. Villas accounted for 68.5% of all luxury transactions, reflecting the desire for privacy, expansive living spaces, and premium features among the ultra-wealthy buyers.

Dubai’s transformation into the world’s leading luxury home market has been nothing short of extraordinary. According to Petri Mannila, Partner and Head of Prime Residential, UAE at Knight Frank, this growth is largely driven by an influx of ultra-rich individuals relocating to the emirate with their families and businesses. "Dubai has emerged as the world’s leading market for luxury home sales, an enviable position given the relatively young age of the market," he stated.

The Rise of the Off-Plan Market

Interestingly, nearly 52% of all luxury sales in 2024 were in the primary (off-plan) market, signaling strong interest in new developments. The top three developers—Omniyat, Nakheel, and Emaar Properties—accounted for a combined 46% of these transactions, highlighting their central role in shaping the city's luxury housing landscape.

Despite a prolonged decline in the availability of luxury homes, Dubai’s $10 million-plus market has seen significant growth. As Mannila noted, since mid-2023, the supply of high-end properties has steadily decreased as developers struggle to meet the growing demand from both Dubai's elite and international high-net-worth individuals (HNWI). This ongoing supply-demand imbalance is likely to continue driving up prices and keeping the market competitive in the coming years.

Conclusion: Dubai’s Luxury Market Shines Bright

As Dubai continues to grow as a global magnet for wealth and luxury living, the city’s record-breaking sales figures for $10 million-plus homes are a testament to its unrivaled position in the luxury real estate market. With Palm Jumeirah and other exclusive neighborhoods leading the charge, Dubai remains a key destination for ultra-wealthy individuals seeking premium properties in a city known for its innovative architecture, high-end living, and investment potential. With continued population growth and evolving demand, Dubai's luxury residential market is set to continue its upward trajectory.