Dubai's luxury real estate sector continued to thrive in 2024, achieving a new milestone in the sale of ultra-high-end properties. The market remained steady, yet demand for luxury homes priced above $10 million reached unprecedented levels.
Dubai recorded 435 sales of homes valued at over $10 million, surpassing the 434 transactions registered in 2023, according to global property consultancy Knight Frank. The fourth quarter alone saw 153 deals, marking the highest quarterly sales figure ever for this segment.
Despite global economic uncertainties, Dubai continues to attract high-net-worth individuals (HNWIs) from around the world. Faisal Durrani, Partner and Head of Research for MENA at Knight Frank, noted that the demand for ultra-luxury residences has outpaced developers' ability to supply them.
Dubai's rising population has been a key driver of this demand. The city's population surpassed 3.8 million in 2024, reflecting an increase of approximately 170,000 residents or 4.6% growth within the year. This surge has fueled demand across all housing categories.
Dubai’s luxury property prices witnessed a significant increase last year. Overall house prices rose by 19.1%, with villa prices climbing by 20.2%. Compared to the first quarter of 2020, villa prices have surged by an astonishing 99.8%. The interest of the global elite remains strongly focused on Dubai’s luxury villa market.
Palm Jumeirah retained its position as Dubai’s top location for high-end property transactions, accounting for 127 deals—or 29% of all sales above $10 million. The total value of these sales amounted to nearly $2.3 billion, representing 32.5% of the city's luxury real estate market.
Palm Jebel Ali emerged as a strong contender, ranking second in transaction volume with 36 deals. Emirates Hills secured second place in terms of total value, generating $514.5 million in luxury home sales. Other notable locations included Jumeirah Bay Island, District One, and Dubai Hills Estate, which contributed 6.7%, 6.6%, and 6.2% of the luxury market, respectively.
Villas continued to dominate luxury real estate sales, making up 68.5% of all transactions in this category.
Petri Mannila, Partner and Head of Prime Residential at Knight Frank UAE, emphasized that Dubai has solidified its position as the world’s leading market for luxury home sales. The influx of ultra-rich individuals and business leaders relocating to the city has driven this rapid market expansion.
A significant portion of luxury transactions in 2024 took place in the primary (off-plan) market, accounting for 52% of all sales. The top three developers—Omniyat, Nakheel, and Emaar Properties—were responsible for a combined 46% of these transactions.
Despite this impressive growth, the availability of luxury homes has steadily declined since mid-2023. Developers have struggled to keep up with the rising demand from Dubai’s elite and international HNWIs, further intensifying competition in the market.
Dubai’s luxury real estate sector continues to set new records, with demand for ultra-high-end properties showing no signs of slowing down. As the city cements its status as a prime destination for global wealth, its luxury housing market is expected to remain a focal point for high-value investment in the coming years.
