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Some 105 homes priced over USD 10 mn were sold in Dubai in 1Q 2024, marking a 19% y-o-y increase, according to global property consultant Knight Frank’s latest analysis. Luxury home sales pooled a value of over USD 1.73 bn during the quarter, up 6% y-o-y.
Reason behind the surge: Growth was driven by heightened buyer interest from “international high-net-worth individuals vying for the city’s most expensive homes” and reduced supply, with the volume of for-sale homes priced above USD 10 mn in Dubai narrowing by 59% y-o-y to 864 homes in 1Q 2024, says Knight Frank partner and MENA head of research, Faisal Durrani.
Some 36.3% of the market share was dominated by Palm Jumeirah, which recorded sales worth USD 628 mn in 1Q 2024. Jumeirah Bay Island had the second largest presence in the luxury market, accounting for 11.1% of the market share, followed by Dubai Hills Estate, which made up 7%. Palm Jumeirah sold the most luxury estates during the quarter, handing over 39 high-end homes, followed by Palm Jebel Ali and Business Bay, which saw 10 and 7 luxury homes sold.
Sales went up, as did prices: Prime residential prices in the emirate inflated 26.3% y-o-y over the past year, with prices in Dubai Hills Estate rising by nearly 11% y-o-y. The number of available homes for purchase in Dubai Hills Estate, on the other hand, fell 75% y-o-y to just 1k units.
ICYMI #1- The emirate witnessed a 16.3% y-o-y increase in prime residential values in FY2023, and a hulking 44.4% y-o-y increase in 2022. Knight Frank ranked Dubai’s luxury segment second globally in terms of price increases in 2023, recording a 15.9% y-o-y increase owing to the emirate’s ability to appeal to the international elite.
Looking up: “Dubai’s luxury homes market still remains one of the most affordable in the world,” with USD 1 mn snagging investors some 980 sqft of prime residential space in Dubai, compared to less than 37.2 sqm in global city hubs such as New York, London, and Monaco, Durrani adds. The comparative difference hints that sale activity in the emirate’s luxury property market will sustain momentum despite the unprecedented increase in price.
OTHER REAL ESTATE NEWS-
Arada hands out construction contracts worth AED 615 mn: Sharjah-based property developer Arada awarded two construction contracts valued at AED 615 mn to Saleh Construction and Yanal Building Contracting Company for Azalea, the fourth phase of its Masaar forested master community in Sharjah’s Suyoh district, it said in a statement. The contractors will build all 565 homes in the residential development, with Saleh constructing 324 homes and Yanal taking on 241 homes. Construction for the project will commence immediately, with the handover slated for the end of next year.
Refresher: Inaugurated in 2021, Masaar is Arada’s best-performing project, collecting AED 3.64 bn in sales in 2023. The project is valued at AED 9.5 bn and houses 3k villas and townhouses across 6 phases, in addition to a green spine of some 70k trees.
How it’s going: The project wrapped its first phase in 2023 with 430 homes built. Over 1.5k homes in the second, third, and fourth phases of Masaar are currently under construction, with the remaining two project phases to be awarded in 2Q 2024. The entire project is expected to go live by the end of 2026.
