Dubai’s luxury real estate market continues to lead globally in terms of growth and demand. Between January and June 2025, a total of 3,731 properties priced above AED 10 million were sold, a 62.7% increase compared to the same period last year.
The second quarter alone saw 2,388 such high-end transactions, the highest ever recorded in a single quarter. Properties above AED 10 million now make up more than 4% of the total market, a major jump from just 1.1% in 2020. Key deals during this period included a AED 425 million mansion in Emirates Hills and a AED 300 million beachfront villa on Palm Jumeirah.
One of the firms also reported a 48% increase in transaction volume and a 40% rise in net commission income in H1 2025, mainly driven by consistent demand in both luxury and upper mid-market segments.
The brokerage also highlighted a shift in buyer nationalities. Indian buyers led the way, followed by investors from Germany, the UK, and Portugal. Interest from European countries like Spain, Austria, the Netherlands, and Portugal also grew.
“Dubai is no longer just a hotspot for short-term investors. It’s becoming a long-term home for wealthy individuals around the world,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “With a 62% increase in ultra-luxury sales and a rising number of millionaire residents, high-end real estate is now central to Dubai’s property market.”
This boom in luxury real estate reflects broader economic trends. Dubai’s population is expected to cross 4 million in 2025, its fastest growth since 2018. At the same time, the UAE is projected to welcome around 9,800 new millionaires this year, more than any other country, according to Henley & Partners. This continued inflow is driven by favorable tax laws, quality of life, and investor-friendly policies.
Dubai’s overall residential market also saw major growth in the first half of 2025. Property sales rose 22.7% year-on-year, with transaction volumes now over six times higher than in H1 2020. Off-plan sales grew by 19.9% to 54,742 deals, while secondary market activity jumped 26.8% to reach 38,168 sales.
Apartments remained the most active segment, with sales rising 18.2% to 71,879 units — making up nearly 79% of all transactions and over half the total value. Investor interest remained strong in areas like Jumeirah Village Circle, Business Bay, and Dubai Residence Complex.
For the first time in years, the secondary market’s share grew to 41.1% of total sales — showing greater confidence from end-users and long-term investors. Most of this demand was centered in Dubai Marina, Downtown Dubai, and MBR City.
Villa sales also performed well, growing by 27.6% in volume and 53.5% in value, reaching AED 78.3 billion in H1 2025. The demand was mainly driven by off-plan villa projects in suburban areas offering larger homes at better prices, especially attractive to families.
Communities like The Oasis, Grand Polo Club, and The Valley led this villa growth, showing a shift in buyer interest towards spacious homes and integrated lifestyle communities. Engel & Völkers notes that luxury villa demand is now spreading beyond traditional prime areas.
Townhouses recorded the highest growth among all residential types in H1 2025. Sales rose 57.4% to 13,619 units, and the total value increased by 64.7% to AED 42 billion — the best half-year ever for this segment. This rise was fueled by strong off-plan launches in Damac Islands, Damac Hills 2, and The Valley, targeting families and first-time homebuyers looking for space, value, and long-term livability.
Engel & Völkers expects this positive trend to continue into the second half of 2025. The introduction of the First Home Buyer Programme, supported by major developers and banks, is likely to increase demand among residents shifting from renting to owning.
Dubai’s property market remains strong due to its growing population, business-friendly environment, modern infrastructure, and clear vision for the future. In 2025, Dubai was named the world’s top destination for entrepreneurs (Global Entrepreneurship Monitor). Initiatives like the US–UAE AI Acceleration Framework also highlight Dubai’s focus on long-term growth aligned with global tech trends.
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