Dubai’s ultra-luxury residential real estate market recorded another standout year in 2025, with 2,489 homes sold for more than AED 20 million, highlighting the city’s continued appeal to ultra-high-net-worth individuals from around the world, according to Penthouse.ae.
Data from Property Monitor show off-plan properties accounted for 64% (1,604) of these transactions, while ready properties made up the remaining 36% (885). The figures point to growing confidence among buyers in Dubai’s next wave of ultra-prime developments.
Palm Jebel Ali emerged as the strongest-performing ultra-luxury location of the year, accounting for 21% of all transactions above AED 20 million. A total of 517 ultra-luxury homes were sold in the area, generating AED 12.4 billion in sales value, more than any other location in the emirate. Within this surge in demand, a Penthouse.ae agent alone sold 5 villas worth over AED 143 million, underscoring the depth of buyer appetite in the community. The results underline Palm Jebel Ali’s rapid rise as a preferred waterfront address for UHNW investors seeking luxury, privacy and long-term capital growth.
The Oasis ranked second, capturing 12% of the ultra-luxury market with 307 transactions, while Palm Jumeirah – long regarded as Dubai’s original ultra-prime address – placed third with 273 transactions. While Palm Jebel Ali and The Oasis are currently driven entirely by off-plan activity, Palm Jumeirah continues to stand out as the leading destination for ready ultra-luxury homes, appealing to buyers seeking immediate occupation in a well-established location.
Commenting on the market, Marcus Andersson, Head of Luxury Sales at Penthouse.ae and Off Plan at Metropolitan Premium Properties, said: “Dubai’s ultra-luxury property market has entered a new phase of maturity. What we are seeing now is not just growth in transaction volumes, but a structural evolution in buyer preferences. Ultra-high-net-worth clients are increasingly drawn to large-scale, waterfront-led master developments such as Palm Jebel Ali and The Oasis, while established destinations like Palm Jumeirah continue to command strong demand for ready, best-in-class homes. This diversification is a clear sign of the market’s long-term strength.”
Other high-performing ultra-luxury locations in 2025 included Dubai Hills Estate, Mohammed Bin Rashid City, Jumeirah and Downtown Dubai. Although not among the top-ranking areas by volume, Business Bay recorded the single largest transaction of the year: a billionaire sky mansion at Bugatti Residences by Binghatti, which sold for AED 550 million, underscoring the depth of demand for rare, trophy assets across the city.
Looking ahead to 2026, Penthouse.ae expects Dubai’s ultra-luxury residential segment to maintain its upward trajectory. Following record activity in 2025, ultra-luxury sales and rental transactions are forecast to grow by approximately 10–20% year-on-year. Limited supply of true ultra-prime villas, beachfront residences and signature penthouses, combined with sustained inflows of new UHNW residents, is expected to continue driving outperformance at the very top end of the market.
Established prestige locations such as Palm Jumeirah, Emirates Hills and Dubai Hills Estate are set to remain core ultra-luxury markets, while emerging destinations including Palm Jebel Ali and The Oasis are gaining traction as Dubai’s growth expands south and west. Buyer behaviour is also becoming more selective, with increasing emphasis on design quality and execution – a trend particularly evident in the ultra-luxury rental market, where turnkey, fully upgraded homes are commanding significant premiums.
“The influx of ultra-high-net-worth individuals into Dubai is far from peaking,” added Mr. Andersson. “Global uncertainty elsewhere continues to drive wealthy individuals toward stable, business-friendly jurisdictions. Dubai’s low-tax environment, lifestyle offering and expanding ultra-prime residential supply position the city as one of the world’s most attractive destinations for UHNWIs, supporting sustained demand well beyond 2026.”
