UAE wealth growth drives record real estate transactions, says Knight Frank report

Arabian Business

23-04-2025

The UAE has experienced a 98 per cent increase in dollar millionaires over the past decade, establishing itself as the world's second-fastest growing wealth market and spurring unprecedented demand for high-value properties, a new report finds.
The UAE attracted 7,200 millionaires in 2024 alone, building on previous influxes of 4,700 in 2023 and 5,200 in 2022, data from Henley & Partners shows.
This strategic positioning has transformed the UAE from a regional financial centre into a global wealth hub, according to Knight Frank's Private Capital Report.
UAE millionaire population doubles in decade, fuelling luxury property boom
Faisal Durrani, Partner – Head of Research, MENA, said: 'In the Middle East, we are witnessing a defining era of wealth creation and real estate investment. The region's sustained economic growth, underpinned by ambitious national visions and strategic policy reforms, has reinforced its position as a global investment hub.
'Real estate remains at the heart of wealth strategies for UHNWIs, both as a store of value and as a means of wealth preservation. Across the MENA region, demand for prime and super-prime homes has reached unprecedented levels, fuelled by both local and international buyers seeking security, stability and long-term growth.'
As of December 2024, the UAE hosted 130,500 dollar millionaires, ranking as the 14 th largest wealth market globally.
The country is also home to 325 centi-millionaires (individuals with over $100 million in liquid investable wealth) and 28 billionaires – figures that have increased by 110 per cent over the decade.
The largest proportion of incoming millionaires originated from India (31 per cent), followed by the Middle East (20 per cent), Russia & CIS (14 per cent), and the UK and Europe (12 per cent).
Dominic Volek, Group Head of Private Clients at Henley & Partners, added: 'With a record-breaking 142,000 millionaires forecast to change their domicile globally in 2025, the UAE stands poised to capture a significant share of this wealth migration wave, strengthening its status as a wealth hub that has successfully transitioned from regional player to global force.'
Dubai outpaces London, New York in ultra-prime home sales for second year
This wealth migration has delivered substantial economic benefits. Dubai has led global markets for $10 million-plus home sales for two consecutive years, surpassing both London and New York with 435 such transactions in 2024, slightly above the 434 recorded in 2023.
The fourth quarter alone saw 153 residential sales exceeding $10 million – an all-time record.
The momentum continued into 2025, with 111 $10 million-plus sales in the first quarter, marking the highest Q1 result on record and a 5.7 per cent year-on-year increase from Q1 2024.
' Dubai's luxury residential market continues to defy gravity. Demand, particularly from international buyers, remains unrivalled on the global stage. In 2024 alone, Dubai not only led the world in the number of $10 million-plus home sales, but also topped total transaction value, with 435 deals worth $7.1 billion. It has firmly established itself as the global epicentre for ultra-luxury real estate – surpassing legacy markets like New York, London and Hong Kong. It's a staggering achievement for a market that, until recently, was considered relatively young,' Durrani explained.
The Palm Jumeirah remains Dubai's premier ultra-prime location, recording 34 $10 million-plus transactions in Q1 2025 valued at $562.8 million.
Emirates Hills followed with 15 sales totalling $356.7 million, including the quarter's most expensive deal: a six-bedroom villa sold for $106.3 million in January – representing a 1,635 per cent increase from its 2015 purchase price of $6.6 million.
At the very top end, demand remains robust with 12 transactions over $25 million in Q1 2025, only slightly below the 15 deals in Q4 2024.
This demand is creating supply pressures across price segments. In the AED2,000-3,000 psf range, new home delivery fell by 57 per cent year-on-year, while the AED3,000-5,000 psf segment saw a 39 per cent decline.
The ultra-luxury sector faces the most severe shortfall, with just 16 villas delivered in the AED 5,000-plus psf category in 2024, following virtually no new villa deliveries in this segment in 2023.
Nicholas Spencer, Partner – Private Capital and Family Enterprises, MENA, said: 'Dubai has cemented its position as a premier destination for HNWIs seeking real estate for personal use or for investment purposes, with a distinct focus by the global elite on making the city a permanent base or a second home. Our research revealed an astounding $4.4 billion earmarked for investment in Dubai's residential market by global HNWIs, a rise of 76 per cent on 2023, highlighting the seemingly limitless international demand from the super-rich for a home in the city.'
HNWIs driving the market
Last year, total residential transactions approached 170,000 deals worth approximately $115 billion, with $10 million-plus home sales accounting for about 6 per cent of this figure by total value.
The appetite for Dubai real estate increases with wealth levels, rising from 28 per cent among those worth $2-5 million to 78 per cent for individuals with personal wealth exceeding $15 million.
GCC-based HNWIs budget an average of $3.1 million for home purchases, while global HNWIs plan to spend an average of $36.5 million.
Among ultra-high-net-worth individuals considering Dubai property, 25 per cent are prepared to spend $60-80 million, while 16 per cent would spend over $80 million.
Family office growth accelerates wealth transfer across Middle East
Knight Frank also noted increasing growth in family offices across the region. These wealth management vehicles have become critical to the financial landscape.
Buthainah Albaity, Partner – Head of Private Capital and Family Enterprises, MENA, added: 'Countries across the region are in fierce competition to attract these offices, recognising their potential to drive investment, innovation and long-term economic sustainability.'
UBS estimates $84 trillion will transfer between generations through these structures over the next two decades.
In Saudi Arabia, many family businesses are transitioning from second to third-generation leadership, though numerous businesses have yet to experience a single succession.
Dubai and Abu Dhabi have established the most advanced family office regulations in the region, attracting families both regionally and internationally.
Their trust structures enable smooth wealth transfer, confidentiality and efficient cross-border asset management.
India leads source countries for UAE's millionaire migration wave
Knight Frank surveyed 506 HNWIs from nine Muslim-majority nations who collectively expressed willingness to commit $2 billion towards residential property purchases in Makkah and Madinah.
The research found 84 per cent of global HNWIs interested in purchasing in Saudi Arabia, preferably in one of the Holy Cities, with 48 per cent looking to buy property in Makkah as a main residence.
Qatar's residential market has also begun attracting attention from GCC nationals and expats. Knight Frank identified $537.5 million of private capital actively seeking residential real estate in Qatar, compared to total residential sales of $3.2 billion in Qatar during 2024.
Egypt's real estate market remains highly sought after by GCC investors due to deep historic and cultural connections.
The residential sector dominates preferences at 68 per cent, followed by branded residences (30 per cent) and retail (29 per cent), with 72 per cent citing purchase of a second or holiday home as their primary investment motive.