Dubai: The availability of luxury residences drops nearly half as affluent buyers increasingly acquire them for personal use

The number of luxury homes available for sale in Dubai has diminished by nearly half over the past year due to unprecedented demand from high-net-worth individuals, according to data from global real estate consultancy Knight Frank. The availability of such properties has declined by 47%, reducing the total to 2,851 in prime areas like Palm Jumeirah, Emirates Hills, and Jumeirah Bay Islands. This trend indicates that buyers are increasingly purchasing these properties either for personal use or as long-term investments, anticipating future price increases.

During the first half of 2024, Dubai witnessed the sale of 190 homes valued over $10 million, nearly matching the 189 sold in the same period last year. The demand for ultra-luxury properties worth $25 million or more remained robust, with 15 homes sold in Q2, bringing the total to 21 for the first half of the year. Key locations such as Dubai Marina, Downtown Dubai, and Palm Jumeirah are particularly popular due to their luxurious amenities, vibrant city life, and proximity to business hubs, making them attractive for both end-users and investors.

Golden Visa holders seeking larger homes to accommodate their families are driving significant interest in high-end properties. Palm Jumeirah led luxury sales with 853 homes sold in the first half of 2024, representing 89.3% of the total luxury market, followed by Jumeirah Islands, Jumeirah Bay Island, and Emirates Hills. Average transaction prices in Dubai’s affluent neighborhoods reached Dh3,706 per square foot during the first half of 2024, reflecting a 7% year-on-year increase.

Knight Frank's data shows a substantial decline in the number of $10 million-plus home listings, dropping by 65.5% over the past 12 months to just 460 properties. This indicates a shift towards a "buy-to-hold" strategy among international high-net-worth individuals, who are now more focused on purchasing homes for personal use rather than for short-term resale, marking a significant change from previous market cycles.

In light of the continued demand for luxury residences, Emaar has announced a new launch at Rashid Yacht and Marina. The project named Ocean Cove, offers a unique opportunity to own a prestigious home starting from just 1.76 million AED. Prospective buyers are encouraged to book today to secure their place in this exclusive development.