Dubai has recorded a surge in luxury property sales, with 948 transactions valued at Dh15 million ($4 million) or more in the first five months of 2024, according to a report by Better homes. These high-value deals are concentrated in prime areas such as Palm Jumeirah, Mohammed bin Rashid City, Dubai Water Canal, Tilal Al Ghaf, and Dubai Hills Estate.
Key Highlights of Dubai’s Luxury Property Market:
Highest-Priced Sales:
- Dh165.6 million sale at Ritz Carlton Residences in Dubai Healthcare City
- Dh140.5 million sale in Bulgari Lighthouse, Jumeirah Bay
- Dh140 million sale in Fendi Casa Canal by AHS Properties in Dubai Water Canal
Emerging Luxury Market:
The luxury real estate market in Dubai has gained significant momentum post-Covid, driven by the government’s proactive pandemic response.
Market Dynamics:
- Steady house price inflation is expected due to population growth and sustained demand.
- Dubai’s affordability relative to other major cities despite price growth attracts buyers.
Government Initiatives:
- Residency permits for retirees and remote workers.
- Expansion of the 10-year golden visa programme.
- Overall economic growth driven by diversification efforts.
Global Comparison:
- Dubai’s luxury market outperformed London and New York, with sales of $10 million-plus homes nearly doubling to $7.6 billion.
- Prices of $10 million-plus homes grew at one of the fastest rates globally, at 26% last year.
Wealth Influx:
- Dubai has welcomed 99,000 millionaires over the years, with 72,500 millionaires, 212 centi-millionaires, and 15 billionaires relocating in 2024.
- The city now hosts the highest concentration of wealthy individuals in the Middle East, with a collective net worth exceeding Dh3.7 trillion.
Comparative Affordability:
- Property prices per square foot in the first quarter of 2024:
- London: $824
- New York: $808
- Singapore: $765
- Los Angeles: $663
- Toronto: $659
- Dubai: $352
Dubai’s luxury real estate market offers exceptional value for money, providing a higher standard of luxury for the same investment compared to other major cities. This trend is expected to continue as the city addresses supply challenges by adding more high-end homes, with over 50 luxury projects currently under construction.
Additionally, the market saw a significant increase in luxury rental transactions from January to May, with 270 contracts for properties with annual rents of Dh1 million or more. The surge in tourists and transit passengers has also boosted demand for short-term rental properties, particularly luxury holiday homes.
Expert Insights:
“A truly stand-alone luxury real estate market is a relatively new phenomenon in Dubai and one that only really began to gain significant momentum post-Covid, thanks in part to the government’s proactive response to the pandemic,” said Louis Harding, Managing Director of Betterhomes.
The sustained demand, undersupply of luxury properties, and the city’s attractiveness as a place to live and work are driving the market. The combination of these factors, along with Dubai’s relative affordability, is likely to keep house price inflation moderate and support the continued growth of the luxury property market.
