Dubai’s luxury residential market hit a record in 2025, with sales of homes priced above USD 10 million witnessing a 27.7% rise, from a year earlier to USD 9.05 billion, stated property consultant Knight Frank in its latest report.
“A total of 500 homes worth more than USD 10 million changed hands during the year, up from just 30 such deals recorded in 2020. Within that segment, 68 properties were sold for more than USD 25 million, marking a 45% year-on-year increase,” the report remarked.
The findings further underscore Dubai’s growing status as a global hub for high-net-worth individuals (HNWIs), who are increasingly viewing the emirate not just as a part-time business base but as a full-time home. In November 2025, a separate analysis by Savills found that Dubai topped the rankings as the leading destination for HNWIs globally, surpassing established hubs like New York and Singapore.
Commenting on the latest report, Faisal Durrani, partner and head of research for the Middle East and North Africa at Knight Frank, told the Arab News, “Dubai’s meteoric rise as the world’s busiest market for USD 10 million-plus 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 final quarter of 2025 recorded 143 sales transactions for properties valued at more than USD 10 million, representing a 39% increase compared to the previous quarter,” the Knight Frank report continued, while noting that demand for luxury residential properties remains highly concentrated in destination communities that combine waterfront living, security and amenities into self-contained ecosystems.
Palm Jumeirah led Q4 2025 sales in the USD 10 million-plus segment with 28 transactions, followed by Palm Jebel Ali (22). La Mer, Jumeirah 2 and Tilal Al Ghaf also ranked among the most active neighbourhoods at the top end of the market.
“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,” said Will Mckintosh, regional partner, Knight Frank’s head of Residential at MENA region (Middle East and North Africa).
“At 50% larger than its established neighbour, 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,” Mckintosh added.
The most expensive individual purchase in the fourth quarter was in the Business Bay community, where a six-bedroom apartment in Bugatti Residences by Binghatti was sold for USD 149.7 million. Knight Frank further noted the transformation of Dubai’s real estate market beyond its “emerging” phase to an “emerged” one, marked by greater stability.
“Historical patterns of sharp market cycles, largely fuelled 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,” Durrani remarked.
He concluded, “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% since the fourth quarter of 2020, we believe prime values will expand by a further 3% during 2026.”