Dubai Prime Homes See Soaring Demand & Tight Supply - Smart Zones® Luxury Properties

Dubai’s Prime Residential Market Experiences Surge in Demand and Limited Supply

A report by Knight Frank reveals a significant increase in demand for Dubai’s prime residential properties, particularly those exceeding $10 million. This segment witnessed some of the fastest price growth globally during the past year.

The report highlights Dubai’s appeal to international high-net-worth individuals (HNWIs) due to factors such as global connectivity, favorable interest rates, and residency policies. This has resulted in a substantial decline in available luxury properties, with the number of $10 million-plus homes for sale dropping by 59% within the last year.

Despite price hikes, Dubai’s luxury market remains comparatively affordable compared to other major cities. Knight Frank estimates a more moderate growth of 5% for the prime market in 2024, acknowledging potential risks from global economic slowdown and regional tensions.

The report also explores Dubai Hills Estate as a rising domestic market favorite, driven by its proximity to key areas, excellent amenities, and green spaces. Prices in this area have risen by nearly 11% in the past year, with available properties declining by 75%.

The data suggests strong demand for off-plan properties, particularly those exceeding $10 million. This trend is attributed to the increasing supply of luxury real estate projects, such as the Orla collection and Armani Beach Residences. High sales figures in the initial weeks of these projects demonstrate the market’s capacity to absorb new luxury offerings.

Overall, the report paints a picture of a thriving Dubai prime residential market fueled by strong international demand and limited supply. Continued development catering to this demand is expected to solidify Dubai’s position as a preferred destination for wealthy investors.


Publish 17 Apr 2024


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