Dubai real estate: Ultra-prime homes represent 4 percent of market volume in 2025
With 3,731 properties sold for over AED 10 million in the first half of 2025 — a 62.7 percent increase from the same period last year — Dubai is cementing its position as a global leader in ultra-prime living.
The second quarter alone saw 2,388 high-end transactions, the highest quarterly total ever recorded. This premium segment now makes up over 4 percent of total market volume, compared to just 1.1 percent in 2020, highlighting a structural shift in the emirate's real estate landscape.
Notable deals in
H1 2025
included a record-breaking AED 425 million sale in Emirates Hills and an AED 300 million beachfront villa on The Palm Jumeirah.
Dubai's residential property market saw a 22.7 percent year-on-year increase in sales during H1 2025
Read: Investor confidence fuels 38 percent rise in Dubai residential sales in H1 2025
Engel & Völkers Middle East achieves strong growth across key metrics
Reflecting this surge in high-value activity, Engel & Völkers Middle East reported a 48 percent year-on-year increase in transaction volume and a 40 percent rise in net commission income (NCI) in H1 2025.
Growth was driven by sustained demand across the luxury and upper mid-market segments, fueled by a global client base seeking exceptional properties.
The brokerage also reported a shift in buyer demographics. Indian investors led the way, followed by buyers from Germany, the UK, and Portugal, with growing interest from Spain, Austria, and the Netherlands.
Engel & Völkers' strong European network has enabled seamless service for clients relocating to or investing in Dubai.
'Dubai is no longer simply a hotspot for speculative investors but is now a permanent home for the world's elite,' observed Daniel Hadi, CEO of Engel & Völkers Middle East.
'With 62 percent growth in AED 10 million-plus sales and a growing population of resident millionaires, the luxury segment is no longer a niche, it is central to Dubai's real estate identity. From Emirates Hills to The Palm Jebel Ali, we're seeing a structural shift in demand from global capital moving here for the long term.'
Investor appetite remained strong in Jumeirah Village Circle, Business Bay, and Dubai Residence Complex
Market momentum underpinned by demographics and wealth inflows
The luxury market's growth parallels broader economic trends. According to the Dubai Statistics Center, the emirate is on track to surpass 4 million residents this year, marking its fastest population growth since 2018.
Meanwhile, Henley & Partners forecasts that the UAE will attract 9,800 new millionaires in 2025, more than any other country, reinforcing Dubai's status as a premier wealth hub.
Residential market expands rapidly across all segments
Dubai's residential property market as a whole saw a 22.7 percent year-on-year increase in sales during H1 2025. Transaction volume is now over six times higher than H1 2020, reflecting the emirate's rapid transformation.
Off-plan sales rose 19.9 percent to 54,742 transactions
Secondary market activity grew 26.8 percent to 38,168 transactions
Apartments
remained the core of the market, with sales volumes up 18.2 percent to 71,879 units, accounting for nearly 79 percent of all transactions and over half the total value.
Investor appetite remained strong in Jumeirah Village Circle, Business Bay, and Dubai Residence Complex.
The secondary apartment market showed notable growth, with its share of total transactions rising to 41.1 percent, a first-half high not seen in recent years. Demand remained concentrated in Dubai Marina, Downtown Dubai, and MBR City.
Villas and townhouses lead high-value expansion
Villa sales also soared, with transactions up 27.6 percent year-over-year and total value climbing 53.5 percent to AED 78.3 billion.
Demand was particularly robust in the off-plan villa segment, especially in suburban communities that offer larger living spaces and family-oriented environments. New districts like The Oasis, Grand Polo Club, and The Valley led this growth.
Townhouses emerged as the fastest-growing residential segment in H1 2025:
Transactions surged 57.4 percent year-on-year to 13,619
Total value increased 64.7 percent to AED 42 billion
Strong off-plan launches in Damac Islands, Damac Hills 2, and The Valley fueled demand, particularly among first-time buyers and resident families seeking a balance of space, value, and lifestyle.
Daniel Hadi, CEO at Engel & Völkers Middle East
Outlook: Positive momentum into H2 2025
Looking ahead, Engel & Völkers Middle East expects strong market momentum to continue into the second half of the year. The recently launched First Home Buyer Program, backed by leading UAE developers and banks, is expected to unlock demand from residents transitioning from renting to ownership.
Factors supporting sustained growth include:
Geopolitical neutrality
Investor-friendly regulations
Robust digital infrastructure
Dubai's broader fundamentals remain solid. The emirate retained its position as the number 1 destination for entrepreneurship in 2025 (Global Entrepreneurship Monitor), while international initiatives such as the US–UAE AI Acceleration Framework reinforce its alignment with future-focused global trends.
'With no significant oversupply risks on the horizon and demand surging across every segment, Dubai's residential market is set to remain on an upward trajectory,' concluded Hadi. 'As Engel & Völkers, we are proud to support this transformation — not just as brokers, but as long-term partners to the world's most discerning buyers.'
As the luxury property map expands and demand diversifies, Engel & Völkers Middle East remains at the forefront, facilitating access to Dubai's most sought-after homes and investment opportunities.
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