Dubai’s luxury property market has seen an impressive surge in sales, with 111 homes valued at over $10 million changing hands during the first quarter of 2025. This marks the highest number of sales for the first quarter on record, signalling a robust demand from ultra-wealthy individuals seeking to invest in the emirate’s prime real estate.
The sales activity represents a 5.7 per cent increase compared to the same period in 2024, with total transactions amounting to $1.9 billion, according to a report by Knight Frank. The strong performance comes amid Dubai’s continuing appeal as a global hub for high-net-worth individuals, who have been flocking to the emirate due to its stable economy, luxury offerings, and tax advantages.
Palm Jumeirah, one of Dubai’s most sought-after locations, remains the focal point for these multimillion-dollar transactions. The iconic man-made island recorded 34 transactions in the first quarter, collectively valued at $562.8 million. Its blend of exclusivity, stunning sea views, and proximity to high-end amenities makes it an enduring favourite among buyers looking to invest in the most prestigious real estate Dubai has to offer.
The increase in luxury property sales has been attributed to a number of factors, including the continued influx of international buyers, particularly from Europe, Russia, and Asia. Many high-net-worth individuals have turned to Dubai as a secure investment destination, driven by its strategic location, political stability, and favourable tax regime. The UAE’s zero income tax policy and its status as a global business and finance hub have made it particularly attractive to investors seeking to diversify their portfolios.
The demand for luxury homes has been further fuelled by the desire for privacy and exclusivity. Ultra-wealthy buyers are increasingly drawn to the privacy and security offered by high-end residential developments. As the global economic outlook remains uncertain, these individuals are looking to safeguard their wealth by purchasing tangible assets, with luxury real estate seen as a safe haven investment. Moreover, Dubai’s relatively lower cost of living and high standard of living compared to other global cities has also added to its allure.
The appeal of Dubai’s luxury property market is not limited to residential sales. The commercial sector has also been experiencing a surge in activity, with demand for high-end office space rising. This indicates a growing confidence in the emirate’s long-term economic prospects, as businesses from various sectors seek a presence in the city.
In addition to the traditional high-net-worth individuals, a significant portion of the market is now dominated by ultra-high-net-worth individuals , those with assets exceeding $30 million. This group has increasingly turned to Dubai for second homes or as a base for their business operations. This shift reflects broader global trends, with UHNWIs seeking stability and diversification outside their home countries.
The surge in demand for luxury homes in Dubai is also reflected in the construction and development of new luxury properties. Developers are responding by creating bespoke, high-end residences that offer the highest levels of luxury and sophistication. These properties often feature private pools, expansive views, and a range of personalised services that cater to the demands of the ultra-wealthy clientele.
Despite the strong demand, there are concerns about the sustainability of the luxury property boom. Some experts warn that the market could face challenges in the coming years as supply catches up with demand. The increasing volume of high-end properties being developed could lead to an oversaturation in certain segments of the market, potentially dampening price growth in the long term.