Dubai’s luxury real estate market remained robust in the first half of the year, with sales of homes valued at $10 million or more holding steady despite a significant decrease in available listings, according to a report by property consultancy Knight Frank released on Monday.
During the six months ending in June, a total of 190 high-value homes were sold, amounting to approximately $3.2 billion in transactions. This figure remained almost unchanged from the same period last year, which saw 189 properties sold for a total of $3.3 billion. The report highlighted a notable 65.5% year-on-year decline in the number of luxury homes available on the market in the second quarter, underscoring a shift towards long-term property investment rather than speculative buying.
Faisal Durrani, Knight Frank’s head of research for Middle East and North Africa (MENA), commented on the trend, noting that international high-net worth individuals are increasingly focused on purchasing homes in Dubai for personal use rather than quick resale, as was common in previous market cycles.
Dubai, known for its iconic landmarks including the Burj Khalifa, continues to attract wealthy investors drawn by its status as a global tourism and trade hub. Despite economic diversification efforts into tourism and finance, the city remains a magnet for foreign capital, particularly in the real estate sector where purchase and rental prices have shown resilience.
Among the most coveted areas, the palm tree-shaped artificial island Palm Jumeirah led with 21 sales of properties valued at $10 million or more during the second quarter, constituting 26% of all high-end transactions. Emirates Hills followed with 10%, and the District One area accounted for 7.8% of such deals.
Notably, sales of properties priced at $25 million or more surged by 25% in the second quarter compared to the preceding three months, totaling 15 homes sold. Last year, Dubai topped global rankings for the number of homes sold above $10 million, outpacing major cities like London.
The latest data underscores Dubai’s resilience in attracting high-value property investments amidst fluctuations in market conditions, reaffirming its appeal as a key destination for global real estate investors.
