Dubai’s luxury real estate market has reached unprecedented heights in the first quarter of 2025, with sales of homes valued over $10 million totaling $1.9 billion. This marks the highest Q1 performance on record and a 5.7% increase compared to the same period in 2024, according to Knight Frank.
A total of 111 ultra-luxury homes were sold during this period, underscoring Dubai’s appeal to ultra-high-net-worth individuals (UHNWIs) seeking premium real estate investments.
Palm Jumeirah and Emirates Hills Lead the Market
Palm Jumeirah continues to dominate the luxury segment, recording 34 transactions worth $562.8 million in Q1 2025. Emirates Hills followed with 15 sales totaling $356.7 million. Notably, a six-bedroom villa in Emirates Hills sold for $106.3 million in January, having been initially purchased for $6.6 million in 2015.
Additionally, Dubai recorded 12 deals on homes valued at more than $25 million in the first quarter, reflecting continued appetite from global UHNWIs seeking one-of-a-kind trophy homes.
Global Wealth Migration Fuels Demand
Dubai’s luxury residential market continues to defy gravity, with demand, particularly from international buyers, remaining unrivalled on the global stage. 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.
In 2024, the UAE welcomed 7,200 millionaires, building on an influx of 4,700 in 2023 and 5,200 in 2022, according to Knight Frank, 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% 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 UK, and Europe.
Supply Constraints in the Ultra-Luxury Segment
Despite the surging demand, the supply of ultra-luxury homes in Dubai remains limited. In the Dh2,000 to 3,000 per square foot range, delivery of new homes fell by 57% 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%.
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.
UAE’s Golden Visa Program Attracts Investors
Dubai’s appeal is further enhanced by government initiatives such as the expansion of the 10-year golden visa programme, which offers long-term residency to investors, entrepreneurs, and specialized talents. This program allows investors to include family members and provides fast, streamlined processing with minimal residency requirements.
Interested in securing long-term residency in the UAE through investment?
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