Dubai’s luxury property sector is experiencing an extraordinary boom in 2025, with demand far exceeding supply and prices continuing their upward trajectory. Industry experts highlight a surge in interest from wealthy international buyers, driven by Dubai’s favorable tax environment, investor-friendly legislation, and strategic global appeal.
Since the start of the year, Dubai has recorded 11 major high-end transactions totaling AED 2.8 billion, cementing its place as the world’s most active market for homes priced over $10 million — outpacing New York by 44%, Los Angeles by 98%, and London by 135%.
European Buyers Take the Lead
According to Barney Crompton, co-founder of Eden Realty, Dubai’s upscale coastal areas like Emirates Hills and Palm Jumeirah have seen the most action. Notable deals include a AED 425 million villa in Emirates Hills — the highest-ever recorded — and a beachfront mansion on Jumeira Bay Island sold for AED 330 million.
European buyers, particularly from the UK, France, and Switzerland, are now leading the market, preferring move-in-ready homes and paying top dollar to avoid renovations. Crompton noted that 95% of luxury property buyers in Emirates Hills are paying in cash, valuing full ownership and long-term control.
Exceptional Growth in 2025
Daniel Hadi, CEO of Engel & Völkers Middle East, confirmed that 2025 has outpaced previous years in high-end sales. From January to August, 4,631 properties priced over AED 10 million were sold — a 51% jump from the same period in 2024.
Ultra-luxury home sales exceeding $10 million also rose 25% year-over-year. The market’s growing appeal among wealthy individuals from the Middle East, Europe, North America, and Asia is driving this momentum. Buyers from Egypt, Lebanon, and Gulf countries are also playing an increasingly prominent role.
Hadi emphasized that most villa sales are to wealthy end-users or long-term investors. Some buyers are even relocating permanently to Dubai or acquiring second homes through holding companies or trusts. While mortgage use remains limited, flexible payment plans and low-interest offers are drawing more long-term residents into financing options.
Rising Prices Driven by Limited Supply
Demand continues to outstrip supply, especially for ready-to-move-in luxury villas. Communities like Dubai Hills Estate, Arabian Ranches, and Emirates Living have seen price increases ranging from 19% to 26% this year alone.
Hadi believes the market will stay strong through the rest of 2025 and into 2026, as the UAE is expected to welcome nearly 9,800 new high-net-worth individuals — the highest influx globally. Dubai’s appeal lies in its strategic location, golden visa program, tax incentives, and high-quality lifestyle.
Global Competitiveness
Alia El-Eshaqi, Head of Research for Egypt and UAE at Knight Frank, pointed out that Dubai remains the most active global market for ultra-luxury home sales. In Q3 2025 alone, 103 properties priced above $10 million were sold — up 24% from the same period in 2024. The total for the first nine months reached 357 sales, a 26% year-on-year increase.
Despite this strong demand, Dubai remains competitively priced. Buyers can acquire 78 square meters of luxury living space for $1 million — far more than what’s available in Monaco (19 sqm), London (34 sqm), or New York (34 sqm), making Dubai’s market not only vibrant but also relatively affordable for global investors.
