Dubai registered 111 sales of homes valued at more than $10 million in the first quarter of 2025 as the demand for luxury homes remains strong in the emirate amid an influx of ultra-wealthy individuals.
It marks the "highest Q1 result on record" and a 5.7 per cent annual increase with a total value of $1.9 billion, Knight Frank said in a report on Tuesday. Palm Jumeirah remained the top destination for $10 million-plus homes, with 34 transactions worth $562.8 million in the first quarter.
Emirates Hills followed in second place with 15 sales, totalling $356.7 million. The community also had the most expensive deal of the quarter, a six-bedroom villa that was sold for $106.3 million in January having been initially bought for $6.6 million in 2015.
Dubai also recorded 12 deals on homes valued at more than $25 million in the first quarter, deals which “reflect continued appetite from global UHNWIs (ultra-high-net-worth individuals) seeking one-of-a-kind trophy homes”, Knight Frank said.
“Dubai’s luxury residential market continues to defy gravity. Demand, particularly from international buyers, remains unrivalled on the global stage,” Faisal Durrani, partner and head of research, Mena, at Knight Frank, said. The emirate has “firmly established itself as the global epicentre for ultra-luxury real estate – surpassing legacy markets like New York, London and Hong Kong".
Last year, Dubai was ranked first in the world, both in terms of the value and volume of $10 million-plus home sales, with 435 deals worth $7.1 billion.
The influx of high-net-worth individuals has been boosting Dubai's property market, which has been benefiting from government initiatives such as residency permits for retired and remote workers, expansion of the 10-year golden visa programme and overall growth in the UAE’s economy on diversification efforts.
Last year, the UAE welcomed 7,200 millionaires, building on an influx of 4,700 in 2023 and 5,200 in 2022, Knight Frank said, citing data from Henley & Partners. The total number of dollar millionaires in the UAE stood at 130,500 at the end of December, ranking the Emirates as the 14th-largest wealth market globally.
The number of dollar millionaires in the UAE has soared by 98 per cent over the past decade, making it the second-fastest-growing wealth market worldwide. The greatest proportion of inbound millionaires come from India, followed by the Middle East, Russia and CIS (the Commonwealth of Independent States), the UK and Europe, Knight Frank added.
Alongside the rise of UHNWI in the region, Knight Frank also said the growth of family offices is supporting the real estate market. The appetite for purchasing real estate in Dubai "grew exponentially with levels of personal wealth", rising from 28 per cent of those worth $2 million-$5 million to reach 78 per cent for those with more than $15 million, the report said.
Among UHNWI considering a Dubai property purchase, 25 per cent are prepared to spend $60 million to $80 million on a home in the city, while 16 per cent are willing to consider properties worth more than $80 million. "This level of demand is unsurprisingly putting pressure on supply," it said.
In the Dh2,000 to 3,000 per square foot range, which includes many prime and high-end properties, delivery of new homes fell by 57 per cent year on year in the first quarter. A similar trend was observed in the Dh3,000 to 5,000 per square foot segment, where supply was down 39 per cent.
The most pronounced shortfall, however, was in the ultra-luxury sector. In 2023, virtually no new villas were delivered in the Dh5,000-plus per square foot category. In 2024, just 16 villas entered the market at this price level, "underscoring the scarcity of Dubai’s most exclusive residential offerings", Knight Frank said.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
Within a month of Sun’s February release Elvis had his version out on RCA.
Roy Orbison, Ooby Dooby (1956)
An essential piece of irreverent juvenilia from Orbison.
Jerry Lee Lewis, Great Balls of Fire (1957)
Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.
A Prayer Before Dawn
Director: Jean-Stephane Sauvaire
Starring: Joe Cole, Somluck Kamsing, Panya Yimmumphai
Three stars
Past winners of the Abu Dhabi Grand Prix
2016 Lewis Hamilton (Mercedes-GP)
2015 Nico Rosberg (Mercedes-GP)
2014 Lewis Hamilton (Mercedes-GP)
2013 Sebastian Vettel (Red Bull Racing)
2012 Kimi Raikkonen (Lotus)
2011 Lewis Hamilton (McLaren)
2010 Sebastian Vettel (Red Bull Racing)
2009 Sebastian Vettel (Red Bull Racing)
More from Neighbourhood Watch:
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Persuasion
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ECarrie%20Cracknell%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EDakota%20Johnson%2C%20Cosmo%20Jarvis%2C%20Richard%20E%20Grant%2C%20Henry%20Golding%20and%20Nikki%20Amuka-Bird%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%201.5%2F5%3C%2Fp%3E%0A
