Dubai luxury real estate…exceptional activity with “demand” exceeding supply and “prices” continuing to rise

Real estate experts reported that the Dubai luxury real estate market continues its unprecedented activity with the influx of wealthy people from all over the world to the emirate, thanks to the distinguished investment, legislative and tax environment that it provides to its residents, pointing out that the emirate has recorded 11 exceptional deals worth 2.8 billion dirhams since the beginning of the year.

They pointed out to Emirates Today that Dubai is still the most active market in the world, in terms of the number of home sales worth more than $10 million, outperforming New York by 44%, Los Angeles by 98%, and London by 135% during the past 12 months.

They stressed that the market is witnessing an unprecedented diversity in the nationalities of buyers, with increasing interest from Europe, the Middle East, Asia, and North America, which consolidates Dubai’s position as a global center for luxury real estate, pointing out that demand exceeds supply, and luxury real estate prices continue to rise.

They stated that Dubai provides a luxury residential area of ​​78 square meters for one million dollars, compared to 19 square meters in Monaco, and 34 square meters in each of London and New York, which highlights the global competitiveness of the Dubai luxury real estate market.

Exceptional deals

In detail, Barney Crompton, the founding partner of Eden Realty, said: “The luxury real estate market in Dubai during the current year continues its unprecedented activity with the influx of wealthy people from all over the world to the emirate, thanks to the distinctive investment, legislative and tax environment that it provides to its residents.”

Crompton pointed out that the year 2024 witnessed the implementation of exceptional deals in luxury Dubai real estate, mainly concentrated in the marine areas, most notably “Emirates Hills” and Palm Jumeirah, where prices in “Emirates Hills” witnessed a noticeable increase, with the value of some deals reaching 240 million dirhams.

He added that the year 2025 exceeded these records, and the emirate recorded four deals that exceeded the barrier of 300 million dirhams, pointing out that one of the most prominent deals was the sale of a beach villa on the island of “Jumeirah Bay” for a value of 330 million dirhams, in addition to the deal to sell the Marble Palace villa in “Emirates Hills” for a value of 425 million dirhams, which is the highest to date.

He also pointed out that buyers from Europe, especially from France, Switzerland and the United Kingdom, are now leading the market, stressing that “they prefer ready-to-move-in homes, refuse to make any modifications, and are willing to pay high prices for that.”

He added: “In the past, the prevailing nationalities in (Emirates Hills) were diverse, and included India and Pakistan, but the year 2025 witnessed a clear shift in favor of the Europeans.”

He pointed out that 95% of buyers in Emirates Hills buy in cash without relying on bank financing, saying: “Many buyers see their homes as fixed assets that they do not want to mortgage, and they buy in cash to ensure complete control over them.”

Regarding the performance of the real estate market, he said: “I was previously cautious about the market, but since I returned from my summer vacation this year, I was surprised by the extent of the activity, especially with the continued strong demand from Europe. I am very optimistic about the future of the market for the rest of 2025 and next year 2026.”

Record growth

In turn, CEO of Engel & Völkers Middle East, Daniel Hadi, said: “The luxury real estate market in Dubai has continued its strong performance since the beginning of 2025, benefiting from the record growth achieved in 2024.”

Hadi pointed out that the period from January to August 2025 recorded the sale of 4,631 properties, the value of each exceeding 10 million dirhams, an increase of 51% compared to 3,060 deals during the same period in 2024.

He also explained that sales of ultra-luxury real estate, worth more than $10 million, rose from 262 deals in 2024 to 328 deals in 2025, an increase of 25%, which reflects Dubai’s growing attractiveness as a global center for wealth and real estate investment, pointing out that the emirate recorded 11 exceptional deals worth 2.8 billion dirhams since the beginning of the year.

He noted that the market witnessed an unprecedented diversity in the nationalities of buyers, with increasing interest from Europe, the Middle East, Asia, and North America.

Hadi said: “We have witnessed remarkable interest from European buyers, especially from the United Kingdom, Germany, France and Portugal, who are attracted to villa complexes that embrace active residential communities, and demand from Indian buyers remains strong and stable.”

He pointed out that the Middle East and North Africa region continues to play a prominent role as a main source for buyers of luxury villas, pointing to the high demand from Egypt, Lebanon and the Arab Gulf countries, in addition to a noticeable increase in the number of buyers from North America, which reflects Dubai’s increasing attractiveness on the global level.

He stressed that the vast majority of transactions in the luxury villa market are carried out by high-net-worth individuals, whether as end-users or long-term investors.

Hadi added: “We are witnessing an increase in the number of individuals moving to reside in Dubai or seeking to establish a second home there,” noting that in some cases purchases are organized through holding companies or trust funds for regulatory purposes, but the actual decisions remain in the hands of individual investors.

He pointed out that investment funds are still less active in the villa sector, as they tend to invest in commercial assets or large residential portfolios, adding: “The villa market is by nature a personal market, and is affected by precise preferences such as location, architectural design, and lifestyle.”

He stated that cash purchase is still the preferred option in the luxury villa market in Dubai, due to the speed, reliability and negotiating power it provides, especially in high-value properties.

He pointed out that there is a noticeable increase in the use of mortgages, especially among long-term residents who are familiar with the local financing market, as some buyers resort to financing as part of a broader diversification strategy for their real estate portfolios, even if they have full liquidity.

Hadi added that flexible, interest-free payment plans, especially for off-plan properties, encourage many investors to manage cash flow more effectively, which enhances their future returns without compromising on quality or location.

Hadi said: “Some complexes recorded remarkable increases in prices, such as (Dubai Hills Estate) by 26%, Arabian Ranches by 23%, Jumeirah Golf Estate by 19%, and Emirates Living by 19%, as a result of high demand and the continuing shortage in the supply of high-quality ready-made villas.”

He stated that this growth is driven by several factors, most notably the fact that demand exceeds supply, the growing population, and preferences for an upscale lifestyle in luxury family complexes, which consolidates Dubai’s position as a global center for luxury real estate.

Hadi stressed his confidence in the continued strength of the luxury real estate market in Dubai during the remaining period from 2025 to 2026, supported by the movement of wealth transfer and economic growth.

He said: “The UAE is expected to receive about 9,800 new high-net-worth individuals during the year 2025, which is more than all countries in the world, as many of them are likely to choose to reside in Dubai, thanks to its strategic location, the golden residency program, tax benefits, and high-quality lifestyle.”

He pointed out that demand will remain strong, especially for villas in well-known complexes and projects with luxury brands on the waterfront, with prices likely to rise in light of the limited ready supply.

He stressed that Dubai’s regulatory environment played a vital role in enhancing its attractiveness to foreign investors, especially thanks to recent legislation related to visas and foreign ownership.

Hadi added: “Golden residency for 10 years, the availability of full foreign ownership in specific areas, and low taxes are all factors that have enhanced confidence and clarity among investors, which is lacking in many other global markets.” He pointed out that political and economic stability are among the most prominent strengths that distinguish Dubai as a preferred global destination for long-term real estate investment.

Global competitiveness

For her part, the senior director of research in Egypt and the Emirates at Knight Frank, Alia Al-Ishaqi, confirmed that “the luxury residential real estate market in Dubai witnessed another exceptional quarter, as 103 homes worth more than $10 million were sold during the third quarter, an increase of 24% compared to the third quarter of 2024.”

She indicated that the total number of deals worth more than $10 million reached 357 deals during the first nine months of 2025, an increase of 26% compared to the same period last year.

She explained that until the second quarter of this year, Dubai remains the most active market in the world, in terms of the number of home sales worth more than $10 million, outperforming New York by 44%, Los Angeles by 98%, and London by 135% during the past 12 months.

She pointed out that although Dubai is a major global destination for wealthy people searching for luxury real estate, it is still more distinguished in terms of affordability compared to other luxury real estate markets around the world.

She stated that since the beginning of 2024, Dubai has provided 78 square meters of luxury residential space for one million dollars, compared to 19 square meters in Monaco, and 34 square meters in both London and New York, which highlights the global competitiveness of the Dubai luxury real estate market.

• Luxury beyond the capitals of the world… 78 square meters in Dubai for one million dollars, compared to 19 square meters in Monaco and 34 square meters in London and New York.

• Dubai outperforms New York by 44%, Los Angeles by 98%, and London by 135% in home sales over $10 million.

• 9,800 high-net-worth individuals are expected to come to Dubai during 2025.