Dubai Luxury Home Sales Steady Amid Listing Decline: Knight Frank Report

In a recent report by property consultancy Knight Frank, the market for ultra-luxury homes in Dubai demonstrated resilience in the first half of the year, with 190 homes worth $10 million or more sold, compared to 189 during the same period in 2023. This stability in high-value transactions occurred despite a significant 65.5% drop in available listings in the second quarter.

The total value of these transactions reached $3.2 billion, just slightly below the $3.3 billion recorded last year. This trend indicates a strong “buy-to-hold” mentality among buyers, particularly international ultra-high-net-worth individuals who are purchasing properties for personal use rather than speculative purposes. Faisal Durrani, Knight Frank’s Head of Research for the Middle East and North Africa, highlighted that this behavior marks a shift from previous market cycles dominated by “flipping.”

Dubai’s allure remains potent, thanks to its rapid post-pandemic recovery, significant infrastructure investments, favorable tax policies, and relaxed visa regulations. The city attracted a record 17.15 million international visitors last year and continues to draw wealthy individuals, including many Russians amid the Ukraine conflict.

Under the ambitious D33 economic plan, Dubai aims to enhance its status as a global financial hub and a prime destination for foreign investment, including real estate. The city’s property market has shown robust growth, with no signs of slowing down.

Key areas of interest include the iconic Palm Jumeirah, which led with 21 sales of homes valued at $10 million or more in the second quarter, followed by Emirates Hills and District One. Additionally, sales of homes worth $25 million or more surged by 25% in the second quarter, totaling 15 transactions.

Dubai has solidified its position as the world’s leading market for luxury home sales, surpassing other major cities like London by a considerable margin. This trend underscores Dubai’s growing appeal as a premier wealth hub for global elites.