Dubai Records Surge in $10m+ Home Sales

Dubai’s luxury property market has reached a historic milestone, recording 500 home sales valued above $10 million in 2025, according to the latest market analysis by Knight Frank. This record-breaking performance reinforces Dubai’s position as one of the world’s leading destinations for ultra-luxury residential real estate and highlights sustained demand from high-net-worth and ultra-high-net-worth individuals globally.

The surge in high-value transactions reflects strong investor confidence, an attractive tax environment, and Dubai’s continued appeal as a global lifestyle and investment hub. Despite global economic uncertainties, the emirate’s prime residential market has shown remarkable resilience, outperforming many established international cities.

Record-Breaking Year for Dubai’s Ultra-Luxury Property Market

In 2025, Dubai achieved 500 residential property transactions priced above $10 million, representing a 15% increase year-on-year. The combined value of these transactions reached approximately $9.05 billion, marking a 28% annual rise in transaction value.

This performance is not only a numerical record but also a strong indicator of the depth and maturity of Dubai’s luxury real estate market. The steady growth in both transaction volume and value signals that demand is broad-based rather than driven by a handful of trophy deals.

According to market analysts, Dubai has now firmly established itself as a core market for global wealth, competing with traditional luxury real estate capitals such as London, New York, Monaco, and Hong Kong.

Ultra-Luxury Segment Shows Accelerated Growth

Beyond the $10 million category, the very top end of Dubai’s property market has experienced even sharper growth. Sales of homes priced above $25 million surged by nearly 50% in 2025, underlining rising confidence among ultra-wealthy buyers.

One of the most notable transactions of the year was the sale of a penthouse at Bugatti Residences, which reportedly sold for $149.7 million. This deal ranks among the most expensive residential property sales ever recorded in Dubai and highlights growing appetite for branded, design-led ultra-luxury residences.

Industry experts note that buyers at this level are less sensitive to interest rates and short-term market volatility, instead focusing on long-term value preservation, lifestyle quality, and global mobility.

Why Dubai Continues to Attract Global Luxury Buyers

Dubai’s sustained success in the ultra-luxury segment is driven by a powerful combination of economic, lifestyle, and regulatory advantages.

Strong Investor Confidence

High-net-worth individuals from the Middle East, Europe, Asia, and Africa continue to channel capital into Dubai real estate. Political stability, a resilient economy, and investor-friendly regulations make the emirate a preferred destination for wealth preservation and growth.

Lifestyle and Quality of Living

Dubai offers a unique blend of luxury living, safety, and modern infrastructure. World-class dining, premium retail, private beach access, elite schools, and top-tier healthcare facilities make it especially attractive to affluent families and global entrepreneurs.

Competitive Tax Environment

One of Dubai’s strongest draws is its tax-friendly structure, including:

• No annual property tax

• No capital gains tax on property

• No personal income tax for residents

This environment significantly enhances net returns and long-term value for property investors.

Global Connectivity and Infrastructure

With one of the world’s busiest international airports, advanced transport networks, and iconic developments, Dubai offers unmatched global accessibility. Its strategic location between Europe, Asia, and Africa further strengthens its appeal to international buyers.

Prime Locations Driving High-Value Property Sales

Luxury demand in Dubai is highly location-driven, with several neighbourhoods consistently accounting for the majority of ultra-high-value transactions.

Palm Jumeirah

Palm Jumeirah remains Dubai’s most prestigious residential address. Waterfront villas, signature mansions, and branded residences continue to command premium prices, driven by exclusivity, private beach access, and iconic views.

Business Bay and Downtown Dubai

Luxury penthouses and branded towers in Business Bay and Downtown Dubai are in high demand among global investors seeking central locations with strong rental and capital appreciation potential.

Emirates Hills and La Mer

Emirates Hills continues to attract ultra-wealthy buyers seeking bespoke mansions in a private, gated setting, while La Mer is emerging as a hotspot for contemporary waterfront living with limited supply and high-end design.

These neighbourhoods often record some of the highest price-per-square-foot levels in the Middle East, reflecting their status as trophy asset locations.

Dubai’s Position in the Global Luxury Real Estate Landscape

Dubai’s record-setting performance places it firmly among the world’s most active ultra-luxury residential markets. Unlike many global cities where high-end property activity has slowed due to taxation, regulatory tightening, or economic pressures, Dubai has benefited from policy stability and pro-investment reforms.

Compared with cities such as London and New York, Dubai offers:

• Faster transaction processes

• Lower ownership costs

• Greater flexibility for foreign buyers

This competitive edge has helped the emirate attract capital that might otherwise have flowed into traditional luxury hubs.

Broader Impact on the UAE Property Market

The boom in ultra-luxury sales has positive spillover effects across Dubai’s wider real estate market. Increased confidence at the top end often leads to:

• Rising prices in prime and near-prime areas

• Increased developer activity in luxury and branded residences

• Greater foreign investor participation across market segments

The trend also supports job creation across construction, design, property management, and professional services, contributing to the broader economy.

Growing Role of Branded and Bespoke Residences

One of the defining features of Dubai’s luxury boom is the rise of branded residences and custom-built homes. Global luxury brands in fashion, automotive, and hospitality are increasingly partnering with developers to deliver exclusive residential offerings.

These properties appeal to buyers seeking:

• International brand recognition

• High design standards

• Premium services and amenities

As a result, branded residences often command higher prices and experience stronger demand than non-branded luxury developments.

Outlook for Dubai’s Luxury Property Market

Market analysts expect Dubai’s ultra-luxury property segment to remain robust in the coming years. Continued population growth among high-net-worth residents, sustained foreign investment, and ongoing infrastructure development are likely to support demand.

While price growth may moderate after rapid gains, transaction activity is expected to remain strong, particularly in prime waterfront and branded developments.

Dubai’s reputation as a safe, lifestyle-driven, and globally connected city positions it well to capture future wealth migration trends.

Conclusion: A New Benchmark for Global Luxury Real Estate

Dubai’s achievement of 500 home sales above $10 million in 2025 marks a defining moment for the emirate’s real estate sector. With strong growth in both transaction volume and total value, Dubai has further cemented its status as one of the world’s most dynamic and attractive markets for ultra-luxury residential property.

Supported by investor-friendly policies, world-class lifestyle offerings, and global connectivity, the city continues to draw wealthy buyers seeking long-term value and quality living. As global wealth patterns evolve, Dubai’s luxury property market is well positioned to remain a key player on the international stage.