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Dubai: 50% drop in prime real estate listings as more people look to buy homes
Tenants are increasingly shifting to ownership due to a surge in rental rates amidst a big increase in population
- PUBLISHED: Thu 6 Mar 2025, 10:34 AM
The number of homes available for sale in Dubai fell 30 per cent while the prime market saw an even higher reduction of over 50 per cent in home listings in 2024 as more end-users bought properties in the emirate to beat rising rentals, according to real estate consultancy Knight Frank.
“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 per cent reduction in homes available for sale across the city last year, with the prime markets in the city experiencing an even more acute 52 per cent reduction in home listings,” said Faisal Durrani, Partner, head of research for Mena at Knight Frank.
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As reported by Khaleej Times earlier, tenants in Dubai are increasingly shifting to ownership due to a surge in rental rates amidst a big increase in population in the post-pandemic period.
Real estate Asteco said the residential rental market experienced robust rental growth in 2024, with rates for apartments and villas rising by approximately 2-3 per cent in the fourth quarter of 2024.
Official data showed that Dubai recorded a 30 per cent drop in month-on-month rental renewals in February, suggesting a potential from rental to ownership, resulting in a few properties becoming available for sale in the market.
Dubai’s population continued to increase in 2025. The emirate added nearly 27,000 new residents in the first two months of this year, taking the city’s population to 3.852 million.
Knight Frank’s data showed that the number of homes available for sale in the $10 million-plus bracket fell 40 per cent, down from 4,119 to only 2,491 homes over the last 12 months. The number of homes available in the $25 million-plus bracket saw more than double the rate of decrease – 85 per cent, down from 583 to only 86 properties over the last year. This drop is due to the influx of millionaires and ultra-high net worth individuals to Dubai who are making the emirate their home in the past few years.
Petri Mannila, partner for prime residential, Dubai, Knight Frank, said prime segment growth over the last 12 months highlights that the enduring demand for luxury properties coupled with a decrease in available luxury homes continuing to push prices, which reached Dh6,627 per square foot in Q4 2024.
“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 $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,” said Mannila.
Strong pipeline
According to Knight Frank, the total number of homes under construction now stands at 302,880 units. Of these, 80 per cent will be apartments, with the remainder being villas and branded residences.
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 per cent lag in promised completions over the long term. With this in mind, Knight Frank said just over half of the 60,000 promised homes in 2024 were delivered.
According to Cavendish Maxwell, Dubai’s residential property market supply looks very strong as 243,000 new units are in the pipeline for delivery until the end of 2027 with Jumeirah Village Circle leading the chart, which will stabilise prices and rents and ease pressure on tenants.
“The strength of Dubai’s real estate sector is anchored in its long-term fundamentals. The city’s ability to attract global capital, combined with its strategic regulatory initiatives, ensures demand remains robust across all market segments,” said Farooq Syed, CEO of Springfield Properties.
