Knight Frank reported that Dubai’s luxury residential market reached an all-time high of 2025, as home sales of properties valued over $10 million increased 27.7 percent in a year compared to the previous year.
Over 500 homes valued more than $10 million have been sold this year, a surge from just 30 such deals recorded in 2020. The property consultancy stated that within the segment, it sold 68 properties exceeding $ 25 million, a 45 percent year-on-year growth.
The results highlight the fact that Dubai is rapidly becoming a destination for high-net-worth individuals worldwide, who are looking at the emirate not only as a part-time business location but also as a full-time residence.
Another analysis in November by Savills established that Dubai took the lead to emerge as the most preferred destination, with the highest number of HNWIs globally, when compared to New York and Singapore.
Faisal Durrani, partner and head of research for the Middle East and North Africa at Knight Frank, commented on the latest report that “Dubai’s meteoric rise as the world’s busiest market for $10 million+ homes, having increased from just 30 sales in 2020 to 500 by the end of 2025, is best reflected in the emirate’s growing reputation as a magnet for the global elite.”
The third quarter of 2025 registered 143 property sales transactions at over $10 million valuation, a 39 percent growth over the preceding quarter.
The report further stated that the luxury residential property is so concentrated in destination communities where residents live on waterfronts in ecosystems that offer security and amenities.
However, the Palm Jumeirah led fourth-quarter sales in the $10 million-plus segment with 28 transactions, followed by Palm Jebel Ali with 22. The La Mer, Jumeirah 2, and Tilal Al Ghaf were also the most active at the upper end of the market and were the top neighborhoods.
Regional partner, Knight Frank’s head of Residential at MENA, Will McKintosh, said, “Dubai’s residential market has differentiated itself from regional cities and many other global gateway locations through the creation of destination communities that integrate leisure, safety, and convenience into self-contained ecosystems.”
McKintosh stated, “At 50 percent larger than its established neighbor, Palm Jumeirah, Palm Jebel Ali remains a destination to watch. 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.”
The priciest single-unit buy of the fourth quarter was in the neighbourhood of the Business Bay community, wherein a six-bedroom apartment at the Bugatti Residences by Binghatti sold for $149.7 million.
Therefore, Knight Frank added that the Dubai real estate market is not only shifting out of its emerging stage to an emerging market but is also becoming more stable.
Durrani reported that “Historical patterns of sharp market cycles, largely fueled by speculative investment, have receded and, while natural market cycles will persist, we believe the volatility associated with previous speculative booms is less likely in this new era of established residency.”
He stated, “As the market extends past its five-year property price rally, the rate of price rises across the mainstream market is starting to slow, albeit they continue to rise. After growing by 194 percent since the fourth quarter of 2020, we believe prime values will expand by a further 3 percent during 2026.”
