Dubai’s luxury real estate market continues to witness sustained growth, marking a fourth year of rising transaction volumes and capital values. The upward momentum continues to be underpinned by strong investor appetite, favorable regulatory conditions and increased demand for premium homes in Dubai’s real estate market.
The AED10 million+ ($2.72 million) segment, a key benchmark of Dubai’s prime residential landscape, saw a tenfold rise in transactions over the past four years, from 469 in 2020 to 4,670 in 2024, according to Savills Middle East’s first Dubai Prime Residential 2025 report. In Q1 2025 alone, over 1,300 homes changed hands at this level, representing a 31 percent increase year-on-year.
“Dubai’s prime residential market continues to attract high-net-worth individuals seeking space, privacy and superior lifestyle quality. This is particularly evident in the consistent demand for luxury villas and branded residences,” said Andrew Cummings, head of residential agency, Savills Middle East.
Key luxury hotspots emerge across Dubai
Off-plan transactions across Dubai’s luxury real estate market now account for 69 percent of all AED10 million+ sales, up from just 14 percent in 2020, reflecting rising confidence in future stock and a shift in buyer preferences.
Among villas, new developments such as Palm Jebel Ali, District One West and The Acres recorded among the highest transaction volumes, while in the apartment segment, Dubai Harbour, Palm Jumeirah, and Downtown Dubai remain hotspots.
Jumeirah Islands exemplifies the strength of the luxury villa segment in Dubai, with 89 homes sold above AED10 million in 2024, a dramatic shift from zero such transactions before 2021. The area has also seen an increase in properties selling for over AED20 million, largely driven by high-quality renovations.
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Dubai’s prime segment to grow 8–10 percent in 2025
Villas now dominate the AED10 million+ space in Dubai’s real estate market, accounting for 70 percent of transactions in 2024. While waterfront apartments command higher prices per square foot, averaging AED5,400, demand remains strong across both formats, especially in branded and lifestyle-driven projects.
With Dubai ranking as the most active city globally for branded residences and expected to deliver 40 percent of all such developments in the Middle East and Africa by 2031, the outlook for the prime segment remains positive.
“Recent master plan announcements, including the development of Jebel Ali Racecourse and the second phase of Jumeriah Golf Estates, alongside launches such as Emaar’s Grand Polo Club and Resort look set to deliver further prime product to Dubai’s residential market,” Cummings concluded.
Savills anticipates continued momentum through the year, with projected growth of 8–10 percent for the prime segment in 2025, as wealth migration, new masterplan communities and lifestyle-led developments reshape Dubai’s upper-tier housing market.
