Dubai set a new record last year for the sale of homes priced over $10 million, as demand for luxury properties stayed robust amid an influx of wealthy international buyers.
According to the latest report from Knight Frank, a total of 500 homes valued above $10 million were sold, marking a 15% increase in volume and roughly a 28% rise in value to $9.05 billion compared to the previous year.
Within this segment, 68 properties were priced over $25 million, representing an annual jump of nearly 48%.
There is a “huge appetite among regional and global high-net-worth individuals (HNWI) to own a home in Dubai, attracted by the high quality of life, world-class amenities and infrastructure, enabled by the government’s ambitious investment programmes” driving sales higher, said Faisal Durrani, partner and head of research, Mena at Knight Frank.
The UAE has been drawing a significant number of HNWIs from around the world, supported by government initiatives such as residency permits for retirees and remote workers, the expansion of the 10-year golden visa program, and strong economic growth, The National reports.
The Arab world’s second largest economy is estimated to have welcomed a record 9,800 relocating millionaires last year, attracted by regulatory reforms and a tax-free lifestyle, according to a report by Henley & Partners and wealth intelligence firm New World Wealth.
By 2024, Dubai was home to around 81,200 millionaires and 20 billionaires.
In the fourth quarter, sales of homes priced above $10 million totalled 143, up 39% year-on-year, with Palm Jumeirah (28) and Palm Jebel Ali (22) emerging as the leading areas for luxury property purchases, according to the latest data.
Other areas that saw notable activity in the $10 million-plus segment included La Mer near Jumeirah One, Jumeirah Second, Tilal Al Ghaf, Emirates Hills, and Dubai Hills Estate.
“At 50% larger than its established neighbour Palm Jumeirah, Palm Jebel Ali remains a destination to watch,” said Will Mckintosh, regional partner and head of residential, Mena at Knight Frank.
“While it will obviously take time to reach the maturity of other established communities, the 2025 sales figures are a welcome indication of its high potential and the growing demand from the wealthiest buyers for prime waterfront property and the luxury Dubai lifestyle.”
Furthermore, property prices are expected to keep rising next year, although at a slower pace, supported by sustained strong demand.
“After growing by 194% since [the fourth quarter of] 2020, we believe prime values will expand by a further 3% during 2026,” Durrani said.
The current market dynamics are also being fuelled by genuine end-user activity, as individuals and families buy properties for personal use.
“This fundamental change means Dubai’s real estate landscape is moving beyond its ‘emerging’ phase to become an ‘emerged’ market, characterised by greater stability,” Knight Frank stated.