Dubai’s luxury real estate…a record jump in 2025, with sales exceeding 143.8 billion dirhams

The luxury real estate market in Dubai recorded unprecedented levels of activity during the past year 2025, supported by the increasing demand of wealthy people from various countries of the world for the emirate, in light of the attractive investment, legislative and tax environment it provides.

During the past year, Dubai recorded 6,668 luxury real estate deals, with a total value of about 143.8 billion dirhams, compared to 4,735 deals worth 99.3 billion dirhams during the previous year (2024), achieving a growth of 41% in the number of deals, and 45% in their value.

According to special statistics prepared by Engel & Völkers Middle East in Dubai, which specializes in luxury residential and commercial real estate services in the UAE, for Emirates Today, the average price per square foot of luxury real estate (above 10 million dirhams) recorded a growth of 5.3% on an annual basis, rising from 3,406 dirhams per square foot in 2024, to 3,588 dirhams per square foot within a year. 2025.

Since the beginning of last year, the market has recorded 20 exceptional deals in the category of villas and “penthouses”, which are considered the highest, in terms of value, during the past year with a total value of 4.85 billion dirhams, most notably the Marble Palace, Sector (E) in “Emirates Hills”, with a value of 425 million dirhams, and the “Bugatti Residences” penthouse by “Binghatti” in the Business Bay area, with a value of 550 million dirhams.

Prices per foot

Seven areas in Dubai topped the list of areas, in terms of the highest prices per square foot in luxury real estate deals during the year 2025, which is “Jumeirah Bay” Island at about 10,974 dirhams per square foot, followed by the Jumeirah area at about 7,904 dirhams per square foot, Emirates Hills at 7,071 dirhams, “La Mer” at 6,741 dirhams, and Palm Jumeirah at 6,534 dirhams. dirhams, Bluewaters Island at 6,309 dirhams per square foot, and Dubai Water Canal at about 5,034 dirhams per square foot.

These areas continued to record high prices, as a result of the scarcity of supply and the distinctive locations overlooking waterfronts, in addition to the limited luxury units available.

While the lowest areas, in terms of prices per square foot in deals worth more than 10 million dirhams, were: (Damac Islands) at a value of 1,148 dirhams per square foot, (Damac Lagoons) at a value of 1,161 dirhams, (The Oasis) at a value of 1,962 dirhams, (The Acres) at a value of 2,170 dirhams, then Palm Jebel Ali at 2,768 dirhams per foot. The square.

These prices are due to larger land areas, the dominance of villa projects, and the fact that the communities are in the early stages of development.

Higher societies

In addition, a number of luxury communities in Dubai witnessed remarkable activity in real estate deals worth more than 10 million dirhams, with “The Oasis” topping the list with 942 deals, followed by “Palm Jebel Ali” with 646 deals, then “Palm Jumeirah” with 426 deals, and “Nad Al Sheba” with 395 deals.

In turn, “Mohammed Bin Rashid City” recorded about 357 deals, then “Downtown Dubai” 279 deals, and finally “Dubai Harbour” 268 deals, which reflects the continued strength of demand for luxury real estate in various communities, whether existing or new.

Dubai Islands Sales

During the year 2025, Dubai Islands recorded 4,277 residential real estate sales transactions, with most of them continuing to be almost entirely concentrated in the first and second development areas.

Al Jazeera (A) topped the performance, in terms of the number of deals, with 2,960 deals completed at an average price of 2,404 dirhams per square foot, which reflects its position as a major center for residential and mixed-use real estate projects.

As for Island B, it witnessed the completion of 1,317 deals, with a higher average price of 2,520 dirhams per square foot, thanks to the proximity of its projects to the beach and the low urban density, in addition to its growing attractiveness among final buyers and those looking for a distinctive lifestyle.

Currently, the sales movement in the islands (C, D, and E) is still limited, given that they are still in the planning and infrastructure stage, and the main residential projects have not yet been launched there. The names of the islands (A, B, C, D, and E) refer to the approved development areas within the master plan of the Dubai Islands project, and they are the designations approved by planners, developers, and real estate brokers to distinguish between the five islands that make up the project.

Each island is being developed in stages, with the two islands (A and B) currently witnessing the largest proportion of residential real estate development projects and sales activity, provided that real estate projects on the other islands will be launched gradually as the implementation of the general plan progresses.

Highest value

The year 2025 also witnessed the concentration of the highest value real estate deals within a limited number of ultra-luxury sites overlooking waterfronts and traditional villa communities, especially the areas of “Emirates Hills”, “Jumeirah Bay Island”, “La Mer”, and “Jumeirah”.

Engel & Völkers Middle East explained that villas still dominate the highest value segment of the market, driven by the scarcity of land and the availability of custom-designed projects. It also pointed out that strong demand for privacy continues, with high-net-worth global buyers wanting to preserve their assets in the long term.

She stated that the category of ultra-luxury apartments and penthouses witnessed unprecedented activity, with record deals recorded in residential projects that bear the names of luxury brands and have the character of tourist resorts, such as “Bugatti Residences,” “Aman Residence,” “Bulgari Lighthouse,” and “Jumeirah Asura Bay.”

She said that these projects derive their value from the scarcity of supply, in addition to their association with luxury brands with a global presence, as well as the increasing demand from buyers looking for an exceptional lifestyle.

International application

In addition, Daniel Hadi, CEO of Engel & Völkers Middle East in Dubai, said, “Luxury residential real estate deals worth more than 10 million dirhams witnessed remarkable growth during 2025, with the number of deals and their total value increasing by more than 40%.”

Hadi added to Emirates Today that the average price per square foot increased at a moderate pace, which reflects the increased demand for luxury communities that are predominantly villa-like, rather than resulting from price inflation in ultra-luxury locations only.

He explained that the highest prices per square foot continued to appear in rare destinations, islands, and distinctive locations overlooking waterfronts, such as Jumeirah Bay Island, Palm Jumeirah, and La Mer, which strengthens Dubai’s position in the ultra-luxury residential real estate market on a global level.

Hadi pointed out that “activity in new luxury communities, including Palm Jebel Ali and The Oasis, in addition to existing sites, reflects increasing demand for larger homes and villa communities.”

He stressed that “the luxury villa market in Dubai is witnessing a diverse international demand,” noting that the most prominent change in recent years relates to the categories of buyers and their motivations, as most of them tend to reside or keep the property in the long term, focusing on the quality of lifestyle and capital preservation, rather than short-term investment.

Hadi pointed out that the luxury real estate market in Dubai continues to record wide geographical diversity and high flexibility, supported by Dubai’s position as a vital global center, its solid regulatory structure and its attractiveness as a destination for long-term residence.

Unprecedented expansion

In turn, the CEO of JAD Global Real Estate Development Company, Mohammed Al Sheikh, confirmed that “Dubai is witnessing an unprecedented expansion in luxury projects, as more developers are moving to launch ultra-luxury projects in phases, in addition to developing new projects within major communities, whether existing or emerging.”

He added, “These projects are no longer limited to traditional buildings, but are distinguished by innovative designs based on an integrated lifestyle, while ensuring high quality construction, a distinguished location, and large spaces, to meet the needs of the upper segment of the market.”

The Sheikh explained that the demand for these projects is diverse and constantly increasing, as it today includes residential communities bearing international brand names, large-sized villas, and projects focusing on high-end lifestyles, a trend that is expected to continue through 2026.

He pointed out that the success of luxury projects depends on carefully selecting the land to suit the project’s design and concept, while providing an integrated residential experience that makes customers feel that they are purchasing an upscale lifestyle, and not just a property.

He stated that “the regulatory environment in Dubai played a vital role in enhancing the city’s attractiveness to foreign investors, especially with the recent legislation related to visas and foreign ownership, in addition to low taxes, which contributed to enhancing confidence and clarity among investors, which is what many other global markets lack.”

He stressed that political and economic stability represent the most prominent strengths that make Dubai a preferred global destination for long-term real estate investment, as it provides exceptional investment opportunities.

He pointed out that these factors together contribute to increasing the demand for luxury projects, enhance Dubai’s position on the map of high-end real estate investment globally, and provide developers and investors with opportunities to present innovative projects that are compatible with the lifestyle of the high-end segment and its future aspirations.

• 20 exceptional deals recorded by Dubai worth 4.85 billion dirhams during 2025.

• Jumeirah Bay Island records the highest price offered for luxury real estate at 10,974 dirhams.

• Several luxury communities in Dubai witnessed remarkable activity in real estate deals worth more than 10 million dirhams, led by “The Oasis” with 942 deals.

---

---