Drop in Listings Doesn’t Affect Dubai’s High-End Property Sales, Consultancy Reports
Dubai’s Luxury Property Market Maintains Strength Despite Decreased Listings
Dubai witnessed stable sales of homes valued at $10 million or more in the first half of the year, despite a decline in available listings, according to a recent industry report cited by Reuters. Knight Frank, a property consultancy, reported that 190 homes were sold for a total of $3.2 billion from January to June, comparable to the previous year’s 189 properties worth $3.3 billion during the same period in 2023.
The market resilience was evident despite a significant 65.5 percent year-on-year decrease in the number of luxury homes listed in the second quarter. Faisal Durrani, Knight Frank’s head of research for the Middle East and North Africa, noted that this trend underscores a shift towards long-term investment among buyers, rather than quick turnover seen in previous market cycles.
Dubai, home to iconic landmarks such as the world’s tallest tower and renowned for its robust tourism and trade sectors, attracted a record 17.15 million international visitors last year. The city’s swift post-pandemic reopening, coupled with substantial infrastructure investments, favorable tax policies, and relaxed social and visa regulations, continued to draw foreigners, including those from Russia amid geopolitical tensions.
Under the D33 initiative, Dubai aims to bolster its economy through strategic investments in tourism and financial services, alongside efforts to attract foreign investment into real estate. This strategy has sustained high property purchase and rental prices, reinforcing Dubai’s status as a preferred wealth management center in Asia.
According to the Knight Frank report, Palm Jumeirah emerged as the most sought-after location, accounting for 26 percent of luxury home sales in the second quarter, followed by Emirates Hills with 10 percent and the District One area with 7.8 percent of such transactions. Sales of properties valued at $25 million or more increased by 25 percent from the first quarter to a total of 15 homes sold in the second quarter.
In 2023, Dubai led globally in the number of home sales exceeding $10 million, outperforming cities like London by nearly 80 percent in this segment.
