Dubai real estate: 435 homes sold for more than $10m last year as luxury property lures super-rich, top neighbourhoods revealed

Palm Jumeirah and Palm Jebel Ali See Rising Investor Interest as Dubai’s Luxury Real Estate Hits Record Highs
Dubai’s high-end residential real estate market soared to new heights in 2024, setting a fresh benchmark for $10M+ home sales, according to the latest analysis from Knight Frank.

The emirate recorded 435 transactions exceeding $10M, surpassing the 434 sales in 2023, reinforcing Dubai’s position as the world’s leading luxury home market. This surge was particularly driven by a record-breaking Q4, which saw 153 luxury home sales—the highest quarterly figure ever recorded in this segment.

Luxury Real Estate in Dubai
Faisal Durrani, Partner and Head of Research, MENA at Knight Frank, noted that despite global economic challenges, Dubai continues to attract international wealth, with developers struggling to keep up with the rising demand for ultra-luxury residences.

“The city’s growing appeal is also evident in its population surge, which crossed 3.8 million in 2024, an increase of 170,000 people (4.6%). This growth fuels demand for housing across all price segments,” he added.

Luxury property prices reflect this demand, with overall house prices rising by 19.1% in 2024, now standing 13.1% above the 2014 peak. However, villas remain the primary focus of global high-net-worth individuals, witnessing a 20.2% price increase in 2024—nearly doubling (99.8% rise) compared to Q1 2020 levels.

Palm Jumeirah & Palm Jebel Ali: Dubai’s Luxury Hotspots
Palm Jumeirah retained its status as Dubai’s premier luxury real estate hub, recording 127 transactions above $10M, accounting for 29% of total sales and generating $2.3B in revenue, which represents 32.5% of Dubai’s total luxury property sales.

Meanwhile, Palm Jebel Ali, Dubai’s second palm-shaped island, is rapidly emerging as a luxury hotspot, securing second place in transaction volume with 36 sales. This surge underscores a growing appetite for waterfront luxury properties, with the first handovers on Palm Jebel Ali expected in 2027.

In terms of total transaction value, Emirates Hills ranked second with $514.5M in deals (7.3% of the luxury market), followed by Jumeirah Bay Island (6.7%), District One (6.6%), and Dubai Hills Estate (6.2%).

Villas Dominate Dubai’s Luxury Market
Luxury villas accounted for 68.5% of all high-end transactions in 2024, highlighting their dominance in Dubai’s ultra-luxury segment. This marks a significant rise from 52% in 2022 and 2023, as demand from global high-net-worth individuals continues to fuel the market.

Petri Mannila, Partner and Head of Prime Residential, UAE, commented, “Dubai has firmly established itself as the world’s top market for luxury home sales, an impressive feat given the relative youth of its real estate sector.”

The influx of ultra-wealthy residents and business leaders relocating to Dubai has played a key role in this expansion.

Off-Plan Sales & Leading Developers
In 2024, 52% of all luxury transactions occurred in the primary (off-plan) market, with three developers dominating sales:

Omniyat (19%)
Nakheel (16%)
Emaar Properties (11%)
Emaar’s The Oasis – Lavita, launched in Q3 2024, emerged as the most sought-after luxury development, selling 29 of its 43 villas for over $10M.

Dubai’s Prime Market Surges
Dubai’s prime residential sector, which includes Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands, and Emirates Hills, has also seen exceptional growth.

In Q4 2024, average transaction prices in Dubai’s most prestigious neighborhoods climbed to AED6,626 ($1,804) per square foot, marking a 6% increase from Q4 2023.
Palm Jumeirah remained the top performer, accounting for two-thirds of all prime deals (105 transactions).
The average sales price per square foot on Palm Jumeirah surged to AED7,305 ($1,990), reflecting a 15% increase from Q4 2023.
Supply Constraints & Future Market Outlook
Despite strong demand, supply in the luxury segment remains tight.

The availability of $10M+ properties dropped by 40% in 2024, with just 2,490 listings compared to 4,120 in 2023.
While inventory levels began to recover in Q3 2024, the 805 $10M+ listings in Q4 remained 14% lower than the previous year.
At the very top of the market, demand for $25M+ homes remained resilient, with 15 sales recorded in Q4 2024, just one deal short of the all-time high in Q3 2023.

Dubai’s ultra-luxury real estate market continues to thrive, cementing the city’s status as a global hub for high-end property investment.