Dubai’s luxury real estate market is experiencing a significant drop in listings, leaving buyers with fewer options and pushing property values higher.
Recent data from JobxDubai reveals that the number of prime real estate listings has plummeted by 52% year-over-year, marking one of the sharpest declines in recent history.
The shortage has led to increased competition among investors and end users, driving up demand for premium homes.
According to Knight Frank, Dubai’s prime residential sector—covering areas such as Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island—has seen a decline in available listings while luxury property prices surged by 16% in 2024 alone.
Read: 4 Best Time to Sell My House in 2025: Insider Tips for Maximum Profit!
Why Are Prime Listings Dropping?
The sharp decline in real estate listings can be attributed to several key factors:
1. High Demand from Global Investors
Dubai has become a magnet for high-net-worth individuals (HNWIs) looking for secure and tax-efficient property investments. Reports from JLL and CBRE indicate that an increasing number of overseas buyers from Europe, Russia, and China are purchasing luxury homes, further reducing available supply.
2. Fewer Developers Releasing New Projects
Developers are being cautious with new launches, focusing on completing existing projects rather than flooding the market with fresh supply. This has resulted in fewer off-plan listings, limiting options for buyers looking for new properties.
3. Homeowners Holding Onto Their Assets
Many prime property owners are choosing to hold rather than sell, anticipating further appreciation in value. NBC states that nearly 71% of luxury homeowners have no intention of selling within the next 12 months.
4. Government Policies & Residency Programs
Dubai’s Golden Visa program has encouraged long-term property ownership. Investors who qualify for 10-year residency visas are less likely to flip properties, contributing to a tightened supply.
How Is This Affecting the Real Estate Market?
The shortage of prime listings is reshaping Dubai’s luxury real estate sector in several ways:
🔹 Property Prices Continue to Climb
With demand outstripping supply, luxury property prices have risen significantly. Data from Dubai Land Department (DLD) shows that prime property prices in Q1 2024 have increased by 16%, with some ultra-luxury homes appreciating by over 25% in one year.
🔹 Buyers Are Moving to Secondary Locations
Due to the limited availability of prime properties, buyers are shifting interest towards secondary luxury areas like Dubai Hills Estate and Tilal Al Ghaf, where new developments offer upscale living at relatively lower prices.
🔹 Increased Off-Plan Sales
Off-plan sales have surged, accounting for 60% of all prime real estate transactions in early 2024. Buyers are betting on future supply while securing properties at today’s prices.
Market Data Snapshot
| Metric | Q1 2023 | Q1 2024 | Change (%) |
|---|---|---|---|
| Prime Listings Available | 5,200 | 2,500 | -52% |
| Average Prime Property Price (AED per sqft) | 3,800 | 4,450 | +16% |
| Off-Plan Share of Transactions | 45% | 60% | +33% |
| Average Days on Market | 90 | 45 | -50% |
Expert Predictions: Will the Trend Continue?
Industry experts believe the tight supply will persist throughout 2024, with minor corrections possible in 2025. Taimur Khan, Head of Research at CBRE, predicts that “Dubai’s prime market will remain a seller’s market, with constrained supply continuing to push prices higher.”
Meanwhile, Faisal Durrani, Partner at Knight Frank, believes, “The demand for Dubai’s ultra-luxury properties will keep increasing, especially as more international investors relocate to the city.”
Should You Buy Now or Wait?
If you’re considering investing in Dubai’s luxury real estate market, here are key takeaways:
Buy Now If: You’re looking for long-term appreciation, rental income, or securing prime properties before prices climb further.
Wait If: You’re seeking a short-term flip or expecting a price correction in 2025.
Final Thoughts
Dubai’s prime real estate market is undergoing a dramatic shift, with dwindling supply reshaping the landscape for buyers and investors.
With property prices rising, competition increasing, and off-plan sales dominating, now is a critical moment for those looking to enter the market.
