Dubai’s high-end property market sees strong demand despite drop in listings.

The sale of homes worth $10 million or more in Dubai remained stable in the first half of the year, according to a report by property consultancy Knight Frank. Despite a significant drop in listings, demand from the international ultra-rich kept the market buoyant.

From January to June, 190 luxury homes totaling $3.2 billion were sold, nearly matching the 189 properties worth $3.3 billion sold during the same period in 2023. This stability occurred even though the number of available luxury homes plummeted by 65.5% year-on-year in the second quarter.

Faisal Durrani, Knight Frank’s Head of Research for the Middle East and North Africa (MENA), explained that this trend indicates a shift in buyer behavior. “This is a strong sign of the ‘buy-to-hold’ buyer profile that has taken root in the market,” Durrani said, suggesting that international high-net-worth individuals are purchasing homes for personal use rather than for short-term investment purposes, which characterized previous market cycles.

Dubai, known for landmarks like the world’s tallest tower, is the Middle East’s premier tourism and trade hub. The city attracted a record 17.15 million international overnight visitors last year. Dubai’s strategy to boost its economy focuses on tourism, developing a local financial center, and attracting foreign capital, including into its property market, which continues to show robust property purchase and rental prices.

Palm Jumeirah emerged as the most sought-after area, with 21 sales of homes worth $10 million or more in the second quarter, representing 26% of such transactions. Emirates Hills and District One followed, accounting for 10% and 7.8% of sales, respectively. Sales of properties worth $25 million or more increased by 25% in the second quarter compared to the first three months of the year, totaling 15 homes.

Last year, Dubai led the world in the number of home sales above $10 million, selling nearly 80% more such properties than second-placed London.