Dubai last year set a record for selling homes valued at more than $10 million as demand for luxury homes remained strong amid an influx of global wealthy to the emirate.
The total sale of homes valued at more than $10 million reached 500 last year, up 15 per cent year-on-year in terms of volume and about 28 per cent in values to $9.05 billion, according to the latest report from Knight Frank.
Of the total sales, 68 properties were valued at more than $25 million, with numbers within that segment up nearly 48 per cent annually.
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” pushing sales higher, said Faisal Durrani, partner and head of research, Mena at Knight Frank.
The UAE has been attracting a large number HNWIs from across the globe amid government initiatives such as residency permits for retired and remote workers, expansion of the 10-year golden visa programme and strong economic growth.
The Arab world’s second largest economy is projected to have attracted a record 9,800 relocating millionaires last 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.
Palm Jebel Ali
The total number of sales of homes valued at more than $10 million in the fourth quarter reached 143, up 39 per cent on an annual basis, with Palm Jumeirah (28) and Palm Jebel Ali (22) being the top two areas for purchase of luxury homes, the latest data shows.
La Mer near Jumeirah One, as well as Jumeirah Second, Tilal Al Ghaf, Emirates Hills and Dubai Hills Estate, also recorded significant sales in the $10 million-plus category.
“At 50 per cent 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.”
When completed, Palm Jebel Ali will be twice as big as Palm Jumeirah and will feature seven islands and 16 fronds, adding more than 90km of beachfront. It is expected to provide 35,000 families with beachside residences, green spaces and other amenities, as well as 80 hotels and resorts.
The project, being developed by Nakheel, also marks the beginning of a new growth corridor in the Jebel Ali area, underlining the expansion of the emirate, in line with the Dubai 2040 Urban Master Plan and the Dubai Economic Agenda D33.
The most expensive individual purchase in the fourth quarter was in the Business Bay community, where a six-bedroom apartment in Bugatti Residences by Binghatti sold for Dh550 million ($149.7 million), according to Knight Frank.
The sale price for the 47,200-square-foot residence was also the highest ever recorded for a penthouse in the UAE, eclipsing the previous record holder – the 22,000-square-foot penthouse at the Como Residences on The Palm Jumeirah, which sold for Dh500 million in November 2023, it added.
Mr Durrani said property prices will continue to rise next year, although at a slower rate, as demand remains strong. “After growing by 194 per cent since [the fourth quarter of] 2020, we believe prime values will expand by a further 3 per cent during 2026,” he said.
Genuine end-user activity is also driving the current market dynamics, with individuals and families purchasing properties for their own occupation.
“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 said.
