A recently issued report showed that sales of luxury homes, worth $10 million or more, in Dubai remained stable in the first half of this year, despite a decline in the number of real estate listings for sale as demand from the world's wealthy remains strong.
A total of 190 luxury homes worth a total of $3.2 billion were sold in the six months to the end of June, compared with 189 properties worth $3.3 billion in the same period in 2023, according to preliminary data from real estate consultancy Knight Frank.
The report explained that the total number of deals remained stable despite the decrease in the number of luxury homes available on the market by 65.5 percent year-on-year in the second quarter.
The report quoted Faisal Durrani, head of Knight Frank's research department for the Middle East and Africa, as saying in the report: "This is a strong sign of the 'buy-to-hold' buyer pattern that has taken root in the market."
He added that this trend indicates that high-net-worth individuals globally are “largely focused on purchasing homes in the city for personal use, rather than ‘buying and reselling’, which was a hallmark of the previous two market cycles.”
Dubai, home to the tallest tower in the world, is the largest center of tourism and trade in the Middle East. It attracted a record number of foreign visitors in one night, amounting to 17.15 million.
The city seeks to develop its economy through tourism, build a local financial center, and attract foreign capital, including in real estate, with no signs of a decline in real estate purchase or rental prices.
According to the report, the industrial island of Palm Jumeirah was the most sought-after area, recording 21 home sales worth $10 million or more in the second quarter, representing 26 percent of sales in this period.
It was followed by the Emirates Hills area with 10 percent and the First District area with 7.8 percent of these deals.
Property sales worth $25 million or more jumped 25 percent in the second quarter compared with the first three months of the year, to 15 homes in total.
Last year, Dubai ranked first in the world in terms of the number of homes sold worth more than $10 million, and sold more than 80 percent of these properties compared to London, which ranked second.
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