Dubai’s high-end property sales undented by drop in listings

The number of homes worth $10 million or more that were sold in Dubai held steady in the first half of the year despite a drop in listings, an industry report showed this week, as demand from the international ultra-rich stayed strong.

A total of 190 homes worth an overall $3.2 billion were sold in the six months to end June compared with 189 properties for $3.3 billion in the same period of 2023, according to provisional data from property consultancy Knight Frank.

The total number of deals held up despite a 65.5 per cent year-on-year drop in the number of such luxury homes available on the market in the second quarter, the report showed.

“This is a strong sign of the ‘buy-to-hold’ buyer profile that has taken root in the market,” Faisal Durrani, Knight Frank’s head of research for Middle East and North Africa (MENA), was quoted as saying in the report.

The trend suggests international high-net worth individuals “are largely focused on purchasing homes in the city for personal use, rather than to ‘flip’, which was a defining feature of the previous two market cycles,” he added.

Home to the world’s tallest tower, the United Arab Emirates’ Dubai is the Middle East’s biggest tourism and trade hub, attracting a record 17.15 million international overnight visitors last year.

It is seeking to grow its economy through tourism, building a local financial centre and by attracting foreign capital, including into property, with property purchase and rental prices showing no signs of fizzling out.

The report showed palm tree-shaped artificial island Palm Jumeirah was the most sought-after area, recording 21 sales of homes worth $10 million or more in the second quarter, accounting for 26 per cent of sales in the period.

It was followed by Emirates Hills with 10 per cent and the District One area with 7.8 per cent of such deals.

Sales of properties worth $25 million or more jumped 25 per cent in the second quarter compared with the first three months of the year to a total of 15 homes.

Last year Dubai ranked first globally for the number of home sales above $10 million, selling nearly 80 per cent more such properties than second-placed London.