Dubai has been voted the most prestigious luxury real estate market once again. Dubai witnessed a massive increase in the sale of luxury homes. Wealthy buyers from all over the globe are looking at Dubai properties.
The market continues to break records month after month. Knight Frank’s report for 2025 Destination Dubai report shows impressive numbers of growth.
Record-Breaking Sales Numbers
Dubai has sold homes with a price above $10 million in 2024. The number is almost as high as London or New York combined. Dubai Real Estate Q1 2025 Market Report additionally shows that in the initial three months, 111 more sales have also been closed.
Total real estate deals reached $207 billion last year. The home sales alone surpassed $100 billion, with 170,000 homes being sold.
The city set a new record in the early months of March 2025. Home sales topped AED 100 billion more quickly than they have ever been. This is a sign that this market hasn’t slowed even a bit. The wealthy buyers continue to come to Dubai in huge amounts.
Who’s Buying Dubai Properties?
Its Knight Frank report surveyed 387 wealthy people in Dubai whose median net worth was $22 million. Saudi, Indian, and British buyers dominate the market’s demand. They comprised more than 50% of the houses that were sold as luxury.
It is believed that the UAE is the most sought-after destination of Saudi investors. A majority of investors are looking to purchase luxury properties located in Dubai. East Asian buyers show strong interest, with 68 percent. British investors keep an eye on the 67%.
The study found $10.3 billion in private capital that is geared towards Dubai. Dubai was deemed to be the most preferred emirate of 71% of respondents. Saudi buyers had the top satisfaction rate at 80 percent. British buyers followed with 74%. Real Estate Developers in Dubai, offers affordable quality.
Investment Preferences Beyond Homes
Residential properties are still the best option for investment in Dubai. Residences with a brand name in Dubai are now the second most sought-after option. Around 49% of buyers want homes with a brand name. Office market investments came in third with 47% of the interest.
A lot of wealthy buyers are looking to construct custom homes. A majority of buyers are interested in purchasing land plots. This is the case for nearly all buyers nationalities. It indicates Dubai has grown as a property market.
Most Popular Dubai Neighborhoods
Dubai Marina tops the list for the most luxurious communities. 28% of the wealthy buyers are interested in property in the area.
Dubai Hills Estate, as one of the most desirable locations to purchase luxury houses in Dubai is second with 24 percent. Emirates Hills ranks third with an interest rate of 23% for buyers.
The super-rich have different preferences for neighborhoods as compared to the rest of us. People with a net worth of more than $50 million are most likely to choose Dubai Marina. Forty-three percent of buyers who are ultra-rich select this area. Dubai Hills follows at 30 percent.
Rising Property Values
Dubai’s property prices increased by 19.1 percent between 2024 and 2024. The median price was AED 1 685 per sq ft. This is 13.3 percent higher than the previous high. The market continued to expand until early 2025, too.
Prices increased by another 3.7 percent by the beginning of 2025. The increase pushed prices 17.6 percent higher than the 2014 highest point. Prices for villas in Dubai have experienced the highest rises recently.
They increased 19.6 percent in the year that ended in March 2025.
The inexpensive villas located in Dubai are now priced at AED 2,088 per square meter. This is an increase of 107.6 percentage increase from the beginning of 2020. Values of properties continue to increase across all types.
Big Budgets for Dubai Homes
The buyers with the most wealth have huge funds for Dubai. The median amount is around $32million for a property purchase. A lot of buyers are willing to pay far more than the average. More than half of buyers who are ultra-rich will consider buying properties worth $80 million.
Saudi buyers have the largest budget, with an average of $45.7 million. Indian buyers are next with $44.6 million in spending.
British investors are expected to invest approximately $30 million per year. East Asian buyers have the most modest budgets, at $23 million.
The current market cycles show significant changes. Many buyers want houses for themselves and not as investments. The inventory of homes available has decreased across the city. Homes priced over AED 50 million have decreased by 48 percent.
Knight Frank highlights this shift to real customers. The lower inventory in Dubai confirms this trend. The population is settling into Dubai for the long-term. This is creating a more steady real estate market. Best Real Estate Developers in Dubai, offer precision-driven properties.
Government Success
Dubai’s government programs have increased the appeal of Dubai. The Golden Visa programme, the 2040 master plan and the real strategy for 2033 in the real estate industry are essential pillars.
Dubai attracts some of the wealthiest people from around the globe regularly. Investment and living opportunities are the main reason for this fascination. The trend shows no sign of slowing anytime soon.
Faisal Durrani, the Head of Research and Development at Knight Frank, noted this. He noted that the most intense demand comes from those with the most wealth. Government programs have succeeded in attracting the wealthy to invest and live.
Research Methodology
Knight Frank conducted this research together with YouGov. They conducted a survey of wealthy people across several regions.
The study covered people from the UK, India, Saudi Arabia. The study also included East Asian buyers from China, Hong Kong, Singapore.
The majority of participants were wealthy with the exception of their primary residences. The median value of the net was $29 million per individual. This study demonstrates Dubai’s continuing dominance in the market.
Dubai’s luxurious real property market continues to break records into 2025. The city is still the best choice for those with a high net worth. The signs are pointing to an increase in the market.