Dubai luxury property prices will continue to rise next year amid growing demand, a new report has found, after the value of sales of homes worth more than $10 million jumped 54 per cent annually in the third quarter.
Prime home prices are set to increase 3 per cent next year, “underpinned by continued robust international HNWI [high net-worth individuals] demand for premium homes, the continued inflows of global wealth (and the global wealthy) and a deepening pool of resident investors”, consultancy Knight Frank said in its latest quarterly review of Dubai’s property market on Monday.
Dubai remained the “world’s busiest $10 million + market” globally in the third quarter, recording 103 deals, up 24 per cent annually.
The emirate also recorded 17 transactions for homes priced over $25 million during the three-month period, more than twice the number recorded a year earlier, the report said.
The aggregate transaction value topped $2 billion in the three months to the end of September, a 54 per cent annual increase, with average value of ultra luxury homes standing at $19.4 million.
A seven-bedroom mansion in Asora Bay by Meraas in the La Mer community, which sold for Dh350 million ($95.3 million), was the highest-priced property during the period.
The quarterly data is a “stark indication of how fast prices are rising in this exclusive segment of the market”, said Will McKintosh, Knight Frank Middle East's regional partner for residential sales UAE.
“Dubai’s luxury market has cemented its status as a safe haven for international and local luxury buyers and it looks set to be another record-breaking year for the $10 million+ homes market, following the 435 deals registered during 2024,” he added.
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The Palm Jumeirah saw the majority of deals in luxury and super luxury sales in Dubai in 2023. AFP -
At 450m, the Franck Muller Aeternitas tower will be one of the tallest in the city when complete in 2027. It will feature 649 one, two and three-bedroom apartments, plus duplexes, over 106 floors – all topped by a giant clock. Photo: London Gate -
Bayz 101 by Danube will have 1,346 apartments and is the developer's largest project to date in terms of both units and overall space. Photo: Danube Properties -
Sharjah property developer Arada has launched sales for its luxury project in Dubai, the Armani Beach Residences at Palm Jumeirah. Prices start at Dh21 million ($5.7m). Photo: Arada -
Designed by Japanese Pritzker-Prize-winning architect Tadao Ando, in collaboration with fashion icon Giorgio Armani, Armani Beach Residences features 53 two to five-bedroom residences, plus penthouses and two presidential suites. Photo: Arada -
One of the largest private penthouses in Dubai is on sale for Dh600 million. It comprises the three top-three levels and rooftop of Raffles The Palm Dubai Residences. Photo: Emerald Palace Group -
Dubai's AHS Properties has launched a $850 million project called Casa Canal, located at Dubai Water Canal. Photo: AHS Properties -
Casa Canal will have a mix of residences, including three-bedroom penthouses, four and five-bedroom villas and six-bedroom mansions. Units are priced between Dh22.5 million and Dh185 million and the project is set to be delivered in late 2025. Photo: AHS Properties -
Nakheel, the developer behind The Palm Jumeirah, launched the first waterfront villa project on the Palm Jebel Ali in 2023. Leslie Pableo / The National -
The launch of properties on four fronds of Palm Jebel Ali offer two types of homes – coral and beach villas, says Nakheel. Photo: Nakheel -
Dubai developer Sankari Properties is building a $1 billion ultra-luxury project in Marasi Business Bay. Units will start at $10 million. Photo: Sankari Properties -
Damac launched Cavalli Couture on Dubai Water Canal in 2022. The 14-storey building features 70 units, comprising three, four and five-bedroom duplex sky villas and duplex penthouses. Photo: Damac -
Jumeirah Bay Island is one of Dubai's prime residential neighbourhoods. Photo: Bulgari -
There were close to 50 sales of Jumeirah Bay Island properties in excess of $10 million in 2023. -
Also much sought-after is The Mansions, Lanai Islands, Tilal Al Ghaf, Dubai. Photo: Knight Frank -
A luxury villa in Dubai's Emirates Hills sold for Dh102.8 million in 2022. Photo: Phoenix Homes
The UAE is expected to attract a record 9,800 relocating millionaires this year, drawn by regulatory reforms and a tax-free lifestyle, a report by Henley & Partners and wealth intelligence firm New World Wealth found. In 2024, Dubai had an estimated 81,200 millionaires and 20 billionaires.
“High-net-worth individuals have firmly anchored demand for luxury and super-prime assets, while a maturing base of resident end users has provided stability across the mainstream sector,” Mr McKintosh said.
Changing pace
Average values in Dubai's residential property market rose by 2.5 per cent during third quarter, extending an “unbroken run” of quarterly growth that began in late 2020, Knight Frank said. Values now are 10 per cent higher than this time last year.
The third-quarter number of 56,854 home sales valued at Dh117 billion has also pushed the total for the first nine months to more than 148,000 sales valued at Dh401.7 billion ($109.3).
“This extraordinary level of activity underscores Dubai’s growing appeal among both domestic and international investors and purchasers,” said Faisal Durrani, partner and head of research for the Mena region at Knight Frank.
However, as with any cycle, “we are starting to see a slowing in the rate of quarterly rises”.
Quarterly rises averaged 2.02 per cent in 2021, 2.22 per cent in 2022, 4.34 per cent in both 2023 and 2024 and eased to 3.2 per cent between the first and third quarter of this year, Knight Frank data showed.
The property market in Dubai has benefitted 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.
In July, the government launched a new scheme to help Emiratis and UAE residents who do not own any freehold residential property in the emirate get on the property ladder.
Looking ahead, “although the rate of house price growth may be demonstrating signs of slowing, crucially it remains positive”, said Mr Durrani.
“The growth in the mainstream market is likely to average around 1 per cent by the time we get to the end of December 2026.”
