Dubai luxury home sales top $10m in 86 deals during third quarter, Knight Frank reports

Dubai recorded 86 residential property transactions worth $10 million or more in the third quarter of this year, a 17 percent drop compared with the same period last year, as affluent investors continued to put money into the emirate amid regional tensions.

Of these, 13 deals were for homes priced above $25 million, according to a Wednesday report from property consultancy Knight Frank.

The 73 transactions in the $10 million to $25 million range had a combined value of Dh3.93 billion ($1.07 billion), while the remaining 13 deals accounted for Dh1.84 billion.

Those highest-value sales represented about 15 percent of all transactions above $10 million by number, but nearly 32 percent of their total value.

Market trends

“Despite the exceptional geopolitical backdrop across the region, Dubai’s luxury homes market has continued to record high volumes of sales during Q3, albeit these are lower than this time last year,” said Faisal Durrani, partner and head of research for Mena at Knight Frank.

Prices across Dubai’s ten prime neighbourhoods fell for the first time since 2020, declining 5 percent between the second and third quarters, he added.

Overall prime transaction volumes are 29.4 percent lower than a year earlier.

“The biggest drag at the moment on overall market activity is the ongoing regional conflict. The somewhat ‘stop-start’ nature of the hostilities is predictably a confidence dampener,” Mr Durrani said.

Wealth inflows

Dubai and Abu Dhabi continue to draw wealthy individuals, supported by government initiatives that foster economic growth, including favourable tax regimes, business-friendly policies and major infrastructure spending.

Net wealth in the UAE is projected to reach $6 trillion by the end of this decade, despite short-term volatility from the Middle East conflict, according to a Boston Consulting Group report released this month.

In the five years to the end of 2030, net wealth in the Emirates is expected to rise by more than $2.3 trillion, at an annual growth rate of 10.6 percent, the report said.

Dubai and Abu Dhabi were also ranked among the top ten destinations for next-generation wealth, despite current war-related concerns, according to a Savills report this week.

Dubai placed eighth and Abu Dhabi tenth among cities favoured for the $84 trillion of wealth expected to be transferred between generations over the next two decades, Savills said.

In the first nine months of this year, Dubai recorded a total of 412 transactions worth $10 million or more, up 15 percent year on year, Knight Frank’s latest report found. The combined value of those deals this year stood at about $6.67 billion.

On a quarterly basis, transaction volumes in the third quarter were down about 34 percent from the previous period, the report said.

Top locations

Palm Jumeirah saw the most residential sales of $10 million or more in the third quarter, with 27 transactions worth Dh2.01 billion, Knight Frank found.

That community accounted for about 31 percent of luxury homes sold between July and September and 35 percent of their total value.

“The easing of prices by 9.1 percent over the last 12 months means the island is increasingly offering ‘good value’ at Dh4,083 per square foot,” said Louis Harding, partner and head of UAE residential at Knight Frank.

“Buyer interest here continues to largely stem from those seeking a permanent or holiday home, rather than buy-to-flip investors.”

Jumeirah ranked second by transaction volume, followed by Emirates Hills, Dubai Hills Estate and Jumeirah Golf Estates.