Fewer millionaires willing to sell their luxury homes in 2024

Dubai luxury

In the dynamic landscape of Dubai's luxury real estate market, a significant shift has been observed in the availability of high-end properties priced at $10 million and above. The latest data reveals a remarkable decline of over 50% in the number of such properties listed for sale, signaling a trend where more millionaires are opting to call Dubai home and are less inclined to sell their assets.

Faisal Durrani, Partner and Head of Research for Mena at Knight Frank, underscores this trend, noting a substantial reduction in the volume of luxury homes for sale across the city. This decline, amounting to 59% over the past year, has led to a scarcity of available properties in the top-tier segment of the market. The surge in demand from both end-users and long-term investors is a significant driver behind this phenomenon, fueled by renewed confidence in the local economy and the effective management of the COVID-19 crisis by the government.

The post-pandemic period has witnessed a paradigm shift, with flipping in the residential market becoming almost non-existent. Developers have imposed stringent conditions, requiring buyers to fulfill substantial payment milestones before selling the property, further limiting the availability of luxury homes in the secondary market.

Despite these factors, demand for luxury properties remains robust, as evidenced by the sale of 105 homes priced over $10 million in the first quarter of 2024 alone—a notable increase of 19% compared to the same period last year. Dubai's allure as a global real estate hub is underscored by its staggering performance in 2023, recording 431 home sales above $10 million—surpassing major global cities like London and New York.

The Palm Jumeirah emerges as a focal point of luxury real estate transactions, commanding a lion's share of sales by both value and volume. Notably, Dubai Hills Estate has also garnered attention as a burgeoning luxury market, witnessing a surge in demand and a corresponding increase in property prices.

Durrani highlights Dubai's prime residential market's remarkable growth rate of 26.3% over the past year, positioning it as one of the fastest-growing globally. Despite this exponential growth, Dubai's luxury real estate remains comparatively affordable, offering significantly more prime residential space for the same investment compared to other global cities.

Will McKintosh, Regional Partner and Head of Prime Residential for Mena at Knight Frank, emphasizes the ascent of Dubai Hills Estate as a coveted destination for luxury homebuyers. With its strategic location, world-class amenities, and burgeoning green spaces, Dubai Hills Estate has emerged as one of Dubai's most desirable neighborhoods, witnessing a surge in property prices and a dwindling inventory of available units.

In conclusion, Dubai's luxury real estate market continues to evolve, driven by shifting trends in demand, investor sentiment, and economic dynamics. As Dubai solidifies its position as a global real estate powerhouse, the scarcity of luxury properties underscores the city's enduring appeal among discerning buyers and investors.