Dubai’s Luxury Collectibles Market Faces a Shortage Amid Buying Frenzy
Exclusive Finds Dwindle as Demand Soars in Dubai’s Prime Markets
The world of luxury collectibles is witnessing a significant shortage in Dubai, driven by an unprecedented demand from affluent buyers, according to a report from Knight Frank on Monday.
In the second quarter, the availability of exclusive properties in Dubai’s premier residential areas—Emirates Hills, Jumeirah Bay Island, Jumeirah Islands, and the Palm Jumeirah—plummeted by 47% to 2,851 homes compared to the same period last year, the property consultant revealed.
“The global elite remain captivated by Dubai, causing a strain on the supply of high-end homes in the city,” stated Faisal Durrani, partner and head of research for Knight Frank’s Middle East and North Africa regions.
Durrani noted that the recent data builds on previous findings from Knight Frank, which highlighted that $4.4 billion of global private capital is set to enter Dubai’s residential market this year, a 76% increase from 2023. “This surge underscores the growing international buyer interest, especially among the uber-wealthy, with developers struggling to meet the rising demand,” he said.
The scarcity is even more acute in the upper echelon of the market, where the number of homes listed at $10 million or more dropped by 65.5% annually in the second quarter to 460 properties.
“What’s remarkable about the sustained sales growth in Dubai’s $10 million homes segment is that it comes amid a significant decline in available luxury homes,” Durrani added.
This decline in inventory indicates that buyers in Dubai are holding onto properties longer, focusing on personal use rather than quick resale’s, which characterized previous market cycles, Durrani explained.
The city recorded 190 sales priced over $10 million in the first half of the year, underscoring the persistent demand in Dubai’s luxury collectibles market.
