Dubai Tops Global Luxury Real Estate Market

Gulf Insider

21-05-2025

Dubai's real estate market has continued to grow throughout 2024, with transaction values across all sectors reaching $207 billion, according to Knight Frank's 2025 Destination Dubai report released on Wednesday.
The report reveals residential sales of nearly 170,000 properties totalled $100 billion in 2024, with momentum carrying into 2025 as home sales hit AED 100 billion by 4 March – the fastest pace on record.
Dubai maintained its position as the world's busiest market for homes priced over $10 million for the second consecutive year, with 435 sales in this category during 2024 – nearly matching the combined total of London and New York.
An additional 111 homes in this price bracket sold during Q1 2025, the highest number for any January to March period.
'As we have found in our research in previous years and mirroring the experience of our teams, the strongest appetite for a real estate purchase in the UAE comes from those with the greatest wealth and is a testament to the success of the government's programmes to strengthen the emirate's appeal as a place for the world's wealthy to live and invest,' Faisal Durrani, Partner – Head of Research, MENA said.
Knight Frank's survey of 387 high-net-worth individuals (HNWIs) from India, Saudi Arabia, the UK and East Asia, with an average net worth of $22 million, showed that $10.3 billion of private capital is targeting Dubai's residential market.
The UAE's residential sector ranks as the top target for Saudi HNWIs (79 per cent), followed by East Asian HNWIs (68 per cent) and UK investors (67 per cent).
Branded homes emerged as the second most sought-after real estate sector at 49 per cent, with the office market (47 per cent) completing the top three preferences.
Dubai was named as the preferred emirate for real estate acquisition by 71 per cent of respondents, with this figure highest among Saudi HNWIs (80 per cent), followed by British (74 per cent), Indian (69 per cent) and East Asian (61 per cent) buyers.
'The depth of demand from these nationalities is also reflective of our own market experience. Indeed, during 2024, Saudi, Indian and British nationals accounted for just over 50 per cent of homes sold by Knight Frank in Dubai,' Will McKintosh​​​​, Regional Partner – Head of Residential, MENA said.
Dubai Marina was identified as the top target neighbourhood for residential purchases among HNWIs (28 per cent), with Dubai Hills Estate (24 per cent) and Emirates Hills (23 per cent) in second and third positions respectively.
'The super-rich remain laser-focused on purchasing luxury homes in the city, and this unrelenting demand has been a critical driver of Dubai being the world's busiest $10 million+ homes market for the second year running,' Shehzad Jamal, Partner for Strategy & Consultancy in MENA added.
For ultra-high-net-worth individuals with personal wealth exceeding $50 million, Dubai Marina (43 per cent) holds the most appeal, followed by Dubai Hills Estate (30 per cent) and Emirates Hills (22 per cent).
Residential property values in Dubai increased by 19.1 per cent in 2024, reaching an average of AED 1,685 per square foot – 13.3 per cent above the 2014 peak.
The market continued to strengthen in 2025, with prices climbing a further 3.7 per cent during Q1, pushing values to 17.6 per cent above the 2014 peak.
Villa prices grew by 19.6 per cent in the 12 months to the end of Q1 2025, reaching AED 2,088 per square foot – representing a 107.6 per cent increase since Q1 2020.
Knight Frank highlights a shift in the current property cycle towards genuine end-users rather than speculators, evidenced by reduced inventory across the city. In the AED 50 million+ segment, available homes decreased by 48 per cent in 2024 compared to 2023.
Durrani added: 'While we have anecdotal evidence of end-users being the most active buyer group in the market, our research has revealed a number of other key tell-tale signs. For instance, we have also found that 83 per cent of global HNWIs are interested in purchasing land in Dubai to build their own home. This appetite is high almost irrespective of nationality. Dubai has matured quickly throughout this property cycle and this is clearly evidenced by the desire of potential global HNWI home buyers to settle in the city.'
The survey found that global HNWIs are prepared to spend an average of $32 million on Dubai properties.
Among those with personal wealth exceeding $50 million, 54 per cent would consider purchases above $80 million.
Saudi investors have the highest average budget at $45.7 million, followed by Indian buyers ($44.6 million) and British investors ($30 million). East Asian HNWIs reported the lowest average budget at $23 million.
The research was conducted in partnership with YouGov, surveying 387 HNWIs across the UK, India, Saudi Arabia and East Asia (China, Hong Kong, Singapore) with an average net worth of $22 million, excluding their primary residence.
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