Dubai has once again claimed its position as the world’s busiest luxury real estate market, leading global cities like London and New York in high-end home sales for the second year running. The latest findings from Knight Frank’s 2025 Destination Dubai report show that the emirate’s property market continues to attract immense global wealth, with over $10 billion in private capital currently targeting the city’s residential sector.
Luxury Property Sales Break Records
Dubai’s total real estate transactions hit $207 billion in 2024, and momentum shows no sign of slowing down. Residential sales alone totaled $100 billion last year, with AED 100 billion worth of home sales closed by early March 2025—marking the fastest growth pace ever recorded in Dubai’s property cycle.
According to Knight Frank, Dubai recorded 435 transactions of homes priced above $10 million in 2024—outpacing both London and New York combined. In Q1 2025, the trend accelerated further with 111 additional luxury sales, setting a new benchmark for January through March activity in this segment.
Global Wealth Eyes Dubai
Knight Frank’s survey of 387 high-net-worth individuals (HNWIs) from India, Saudi Arabia, the UK, and East Asia revealed an average net worth of $22 million among respondents. Their collective interest signals $10.3 billion in active capital flowing into Dubai’s residential property market.
Dubai ranked as the top choice for 71% of respondents, led by:
🇸🇦 Saudi nationals – 80%
🇬🇧 British buyers – 74%
🇮🇳 Indian investors – 69%
🇨🇳 East Asian HNWIs – 61%
While luxury homes were the primary target, branded residences (49%) and office properties (47%) were also highly sought after.
Top Neighborhoods for Luxury Buyers
When it comes to location, Dubai Marina topped the list of preferred communities among wealthy home seekers, followed closely by Dubai Hills Estate and Emirates Hills.
Among ultra-wealthy individuals (net worth $50M+), Dubai Marina claimed 43% of preference, while Dubai Hills and Emirates Hills captured 30% and 22%, respectively.
“The sustained demand for high-end homes continues to fuel Dubai’s dominance in the global luxury property market,” said Shehzad Jamal, Partner – Strategy & Consultancy at Knight Frank.
Price Growth Shows Market Maturity
Property values across Dubai rose 19.1% in 2024, reaching AED 1,685 per square foot—surpassing the 2014 peak by 13.3%. In Q1 2025 alone, prices increased an additional 3.7%, with villas leading the charge.
Villa prices hit AED 2,088 per square foot by March 2025, showing a 19.6% year-on-year increase and a staggering 107.6% rise since Q1 2020.
The report notes a key shift in buyer behavior: the current boom is being driven more by end-users than speculators. A 48% drop in available inventory for homes priced above AED 50 million further supports this trend.
End-Users Want to Build Their Own Homes
One surprising insight: 83% of global HNWIs are considering buying land to build their own custom homes in Dubai—a sign of deeper commitment and personal connection to the city. This sentiment cuts across nationalities, highlighting how Dubai has evolved into a long-term home base, not just an investment hotspot.
Budgets Are Bigger Than Ever
Global millionaires and billionaires are now willing to spend an average of $32 million on luxury property in Dubai. Some buyer groups, such as Saudi and Indian investors, reported even higher average budgets—$45.7 million and $44.6 million, respectively. British buyers came in at $30 million, and East Asian investors averaged around $23 million.
Among those with a personal net worth of over $50 million, 54% said they would consider spending over $80 million on a Dubai home.
🏡 Final Word: A Magnet for the World’s Wealthiest
Dubai has clearly solidified its reputation as the go-to destination for ultra-wealthy property buyers. With its business-friendly climate, world-class infrastructure, and unmatched lifestyle offering, the city continues to attract a global elite eager to call it home.
And with soaring demand, rising values, and limited supply—Dubai’s luxury real estate boom is far from over.