Knight Frank: Dubai Residential Prices Surge By 19% In 2024 Amid Rising Demand
Dubai’s residential market continues to show strong growth in 2024, with property values rising by 19.1% over the past year, now standing at AED 1,685 psf, according to the Dubai Residential Market Q4 2024 report from global property consultant Knight Frank. This places average prices at 13.3% above the 2014 peak.
On average, villa sale prices have grown by 20.2% over the last 12 months, reaching AED 2,009 psf, placing them 38.1% above the 2014 peak. According to Knight Frank, this sustained growth illustrates the strong appeal of stand-alone villas, beachfront homes and branded residences that provide instant access to the Dubai lifestyle. Knight Frank’s 2024 Destination Dubai showed that access to greenery, wellness centres, and waterfront locations are the top factors attracting the international HNWI buyers.
Faisal Durrani, Partner – Head of Research, MENA, explained: “Residential property values remain on an upward trajectory, with demand showing no signs of abating, both from domestic and international buyers.
“Crucially, in this cycle, we have noted a rise in genuine end users, rather than speculative purchasers that have defined previous cycles This change is reflected in the fact that there has been a 30% reduction in homes available for sale across the city last year, with the prime markets in the city experiencing an even more acute 52% reduction in home listings.
It’s villas though where the attention of the global super-rich remains focussed, with values rising by 20.2% last year, reflecting a 99.8% uplift on Q1 2020 price levels”.
UPCOMING SUPPLY
Knight Frank has updated its total pipeline of residential units scheduled for completion by 2029. The total number of homes under construction now stands at 302,880 units. Of these, 80% will be apartments, with the remainder being villas (18%) and branded residences (2%). This translates into an average of approximately 60,576 homes per year for the next five years, higher than the long-term completion rate of around 36,000 homes per year. While this appears higher than historic levels, there has been a 30% lag in promised completions over the long term. With this in mind, Knight Frank highlights that just over half of the 60,000 promised homes in 2024 were delivered.
ULTRA LUXURY HOMES SHORTAGE
The number of homes available for sale in the US$10 million+ bracket fell 40%, down from 4,119 to only 2,491 homes over the last 12 months. The number of homes available in the US$25 million+ bracket saw more than double the rate of decrease (85%), down from 583 to only 86 properties over the last year.
PRIME HOMES MARKET
Dubai’s prime residential market, which Knight Frank defines as the Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands and Emirates Hills, has experienced a surge in performance as well.
During Q4 2024, average transacted prices in Dubai’s most affluent neighbourhoods reached AED 6,627 per square foot, marking a 16.9% increase compared to Q4 2023.
Petri Mannila, Partner – Prime Residential, Dubai added: “Dubai’s luxury market has cemented its status as a safe haven for international and local luxury buyers with another record-breaking year for the US$ 10 million homes market registering 435 deals over 2024, 153 of which were recorded in Q4 alone making it the highest figure recorded in one quarter on record for this segment”.
“Prime growth over the last 12 months (16.9%) highlights that the enduring demand for luxury properties coupled with a decrease in available luxury homes continues to push prices, which reached AED 6,627 psf as of Q4 2024.”
