The Dubai property market has maintained its strength regardless of geo-political and financial headwinds.
The number of homes worth $10m or more that were sold in Dubai held steady in the first half of this year.
However, there was a drop in listings. It appears Dubai faces a luxury home shortage amid a boom in buying.
190 homes worth an overall $3.2bn were sold in the six months to the end of June 2024 compared with 189 properties for $3.3bn in the same period of 2023, according to Knight Frank.
The report provides evidence that demand from the international ultra-rich stayed strong.
“This is a strong sign of the ‘buy-to-hold’ buyer profile that has taken root in the market.
“HNWI are largely focused on purchasing homes in the city for personal use, rather than to ‘flip’, which was a defining feature of the previous two market cycles.
“What is extraordinary about the continued sales growth in Dubai’s US$10 million homes market is that it is set against a protracted decline in the number of luxury homes on the market.”
Faisal Durrani, Head of Research for Middle East and North Africa (MENA), Knight Frank
The report showed the Palm Jumeirah was the most desirable area, recording 21 sales of homes worth $10m or more in the second quarter, accounting for 26% of sales in the period. The Palm was followed by Emirates Hills with 10% and the District One area with 7.8%.
Previously, Knight Frank reported that US$4.4bn of global private capital is actively targeting the emirate’s residential market this year, up 76% from 2023.
This clearly highlights that the international buyer appetite, particularly among HNWI, continues to strengthen and it seems developers appear unable to keep pace with the demand.
Also, Dubai real estate transactions passed an eye-watering figure last week as the property market continues to heat up.
