Ultra-Prime Properties Account for 4% of Dubai’s Real Estate Market in H1 2025
Dubai’s real estate market continues to lead the global luxury segment, with ultra-prime properties taking center stage in the first half of 2025. According to Engel & Völkers Middle East, 3,731 homes valued at over AED 10 million were sold between January and June — a 62.7% increase compared to the same period in 2024.
This growing segment now comprises 4% of the market volume, up significantly from just 1.1% in 2020, marking a notable structural shift in Dubai’s property landscape.
Record-Breaking Sales Mark Dubai’s Luxury Boom
The emirate saw some of its highest-ever transactions in H1 2025, including:
AED 425 million villa sale in Emirates Hills (the highest ever in the community)
AED 300 million beachfront villa purchase on The Palm Jumeirah
These landmark sales are part of Dubai’s rise as a global ultra-prime destination, moving beyond speculative investing to become a permanent home for high-net-worth individuals worldwide.
Engel & Völkers Reports Best-Ever Half-Year in Dubai
Engel & Völkers Middle East recorded:
48% YoY increase in transaction volume
40% rise in net commission income (NCI)
According to CEO Daniel Hadi, “The luxury segment is no longer a niche. It is now central to Dubai’s real estate identity.”
The firm attributes growth to high demand across both luxury and upper mid-market segments, driven by global buyers and a sharp rise in resident millionaires.
Shifting Demographics: Indian Investors Lead Demand
Top international buyer demographics for H1 2025:
India
Germany
UK
Portugal
Growing interest from Spain, Austria, and the Netherlands
Engel & Völkers’ European network enabled seamless relocations and high-volume purchases, especially among Indian and European high-net-worth clients.
Dubai’s Residential Market Sees Broad-Based Expansion
Overall, Dubai’s property sector saw a 22.7% year-on-year growth in total sales during H1 2025. Transaction volumes are now 6 times higher than H1 2020, indicating Dubai’s rapid evolution as a residential and investment hub.
Key H1 2025 Stats:
Off-plan transactions: 54,742 (+19.9%)
Secondary market transactions: 38,168 (+26.8%)
Apartment sales: 71,879 (+18.2%), making up 79% of all deals
Demand was strong in:
Jumeirah Village Circle (JVC)
Business Bay
Dubai Residence Complex
Dubai Marina
Downtown Dubai
MBR City
Villas & Townhouses Drive High-Value Growth
The villa segment experienced a major upswing:
Villa sales up 27.6% YoY
Total villa value: AED 78.3 billion (+53.5%)
Communities such as The Oasis, Grand Polo Club, and The Valley saw significant interest from family buyers seeking spacious, lifestyle-focused homes.
Meanwhile, townhouses became the fastest-growing segment:
13,619 townhouse transactions (+57.4%)
Total value: AED 42 billion (+64.7%)
Major off-plan launches in Damac Islands, Damac Hills 2, and The Valley attracted strong first-time buyer demand.
Population & Wealth Inflows Support Long-Term Growth
Dubai’s population is expected to exceed 4 million in 2025, its fastest growth since 2018. Additionally, Henley & Partners forecast that 9,800 new millionaires will relocate to the UAE in 2025 — the highest inflow globally.
This demographic momentum, combined with:
Geopolitical neutrality
Business-friendly laws
Digital infrastructure
New buyer initiatives like the First Home Buyer Program
is laying the groundwork for sustainable, long-term market strength.
