Dubai continues to solidify its status as a world-leading destination for luxury real estate investment. In 2025, the city’s ultra-luxury residential market achieved outstanding performance, recording 2,489 transactions for properties each valued over AED 20 million — a clear reflection of growing global confidence in Dubai’s dynamic, secure, and opportunity-rich market.
According to Penthouse.ae, off-plan sales accounted for 64% of these high-value transactions (1,604 deals), while ready properties made up the remaining 36% (885 deals). This healthy balance underscores both the trust in Dubai’s upcoming mega-projects and the ongoing demand for move-in-ready luxury homes.
At the forefront of this surge is Palm Jebel Ali, which topped the list of best-performing ultra-luxury areas in Dubai, capturing 21% of all transactions over AED 20 million. A total of 517 units were sold in this landmark project, amounting to AED 12.4 billion in sales — the highest sales volume ever recorded in a single location across the city. Among these, five ultra-premium villas sold for more than AED 143 million each, highlighting the exceptional demand for world-class, waterfront properties.
The Oasis ranked second, accounting for 12% of the ultra-luxury market with 307 deals, followed by the iconic Palm Jumeirah with 273 sales, maintaining its reputation as a prime destination for high-end ready properties.
Commenting on the market trends, Markus Andersen, Head of Luxury Sales at Penthouse.ae and Head of Off-Plan Projects at Metropolitan Premium Properties, stated:
“Dubai’s ultra-luxury real estate market is showing signs of maturity. We’re not just seeing growth in transaction volume — we’re also witnessing a shift in buyer preferences. There’s a noticeable trend toward large-scale, waterfront developments like Palm Jebel Ali and The Oasis, while demand remains strong for established ready properties in areas such as Palm Jumeirah.”
Other high-performing districts in 2025 included Dubai Hills Estate, Mohammed Bin Rashid City, Jumeirah, and Downtown Dubai, reflecting the broad appeal and diversification of Dubai’s luxury offerings.
Despite not leading in total transaction volume, Business Bay recorded the city’s most valuable single transaction of the year — a stunning AED 550 million sale of a palace within the “Bugatti Residences by Binghatti” project. This record-setting deal underscores the appetite for rare and exceptional assets in the city.
Looking ahead to 2026, Penthouse.ae anticipates continued momentum in Dubai’s ultra-luxury residential market, with sales and rental values projected to grow between 10% and 20% year-over-year. This outlook is supported by investor confidence, a robust pipeline of premium developments, and Dubai’s ever-evolving appeal as a global lifestyle and investment destination.
