Dubai: As Millionaires Purchase Luxury Homes For Their Own Use, The Supply Of These Homes Falls By Almost Half

A year ago, the supply of luxury real estate in Dubai fell by almost half because of the extraordinary demand from affluent buyers. Knight Frank, a global real estate consultancy, released data showing that the number of properties in upscale communities like Palm Jumeirah, Emirates Hills, and Jumeirah Bay Islands has decreased by 47% to 2,851. According to the latest data, purchasers are either investors holding onto their assets in anticipation of future price increases or end users who wish to use it for personal use.

In the first half of 2024, Dubai saw the sale of 190 homes valued at more than $10 million, nearly matching the 189 sales recorded in the same period previous year. In a similar vein, demand for ultra-luxury homes priced at $25 million or more remained strong, as evidenced by the sale of 15 properties in Q2, bringing the total for the first half of 2024 to 21.

Over the last three years, the UAE has emerged as a popular relocation destination for millionaires. Henley & Partners reported that there were 15 billionaires, 212 centi-millionaires, and 72,500 millionaires living in Dubai. With a 78% increase in millionaires in just ten years, from 2013 to 2023, Dubai has experienced one of the fastest rates of growth in the world.