Dubai Tops World’s Super Luxury Home Sales in Q2 of 2024

Discover how Dubai dominated the super luxury home market in Q2 2024, setting new records and attracting global investors.

In a remarkable trend that underscores the resilience and dynamism of the luxury real estate market, global super-prime home sales - properties valued at $10 million or more - have surged by 66% over the past five years. According to recent data released by Knight Frank, a leading global property consultancy, the three months leading up to June 2024 saw 463 transactions across 11 key markets. While this figure reflects a slight decline from the 476 sales recorded in the previous quarter, it is crucial to note that these sales volumes remain nearly two-thirds higher than the levels observed before the pandemic.

Annual Sales Values Stabilize

The total value of super-prime sales across these 11 markets reached an impressive $33.4 billion in the year leading up to June 2024. This figure represents a stabilization of annual sales values, which have fluctuated between $32 billion and $34 billion since the end of the pandemic-driven market boom, when total values peaked at nearly $44 billion in late 2021. The current stabilization indicates a maturing market, where high-end property transactions are becoming more predictable and less volatile.

Growth Since the Pandemic

Despite a recent slowdown in activity, the pandemic has catalyzed a significant expansion of the super-prime market. This growth is particularly pronounced in regions such as Palm Beach, Miami, and Dubai, where a shift in global wealth distribution has driven demand for luxury real estate. The current annual sales value of $33.4 billion marks a substantial increase from $20.1 billion in 2019, highlighting the transformative impact of recent economic changes on the luxury real estate landscape.

Key Market Performance

Among the 11 key markets, Dubai has emerged as the fastest-growing destination for super-prime properties. Sales of homes priced at $10 million or more have skyrocketed from just 23 transactions in 2019 to an astonishing 436 in the most recent 12-month period. This meteoric rise is indicative of Dubai's burgeoning status as a global hub for wealth and luxury living.

Geneva has also experienced notable growth, with sales increasing from 59 in 2019 to 102. Similarly, Palm Beach has seen its sales figures jump from 50 to 138, while Miami has recorded a remarkable increase from 41 to 149. In contrast, more mature markets such as New York, Singapore, Paris, and Hong Kong have shown less dramatic growth, although cities like London and Los Angeles have still managed to achieve increases of 25% to 50% during this period.

Wealth Creation Driving Market Dynamics

The expansion of the super-prime market can be largely attributed to a broader increase in global wealth over recent years. Knight Frank's Wealth Report indicates a 19% rise in the number of ultra-high-net-worth individuals (UHNWIs) globally over the past five years. The robust performance of certain U.S. markets and Dubai is closely linked to this wealth creation, with the number of UHNWIs in the U.S. increasing by 8% in 2023 and by 6.2% in the Middle East.

This Quarter in Depth

In the second quarter of 2024, Dubai led the market with 85 transactions, although this figure represents a decline from the peak of 131 sales recorded in the third quarter of 2023. Following closely, New York ranked second with 72 sales, marking its highest total in two years. Meanwhile, Hong Kong demonstrated a strong performance with 61 sales, signaling a market rebound after several sluggish quarters. This resurgence is largely driven by increased demand from mainland Chinese buyers and the high individual unit prices prevalent across the city.

The data from Knight Frank paints a compelling picture of the super-prime real estate market's resilience and growth potential. While recent sales figures indicate a slight decline compared to previous quarters, the overall trend remains positive, with significant increases in annual sales values and a growing number of transactions in key markets. As global wealth continues to rise, particularly among ultra-high-net-worth individuals, the luxury real estate market is poised for further expansion. The ongoing evolution of this market reflects broader economic trends and changing consumer preferences, making it a critical area for investors and stakeholders to watch closely.