Dubai is the world’s top luxury real estate market again. The city saw huge growth in high-end home sales. Rich buyers from around the world are interested in Dubai properties. The market keeps breaking records month after month. Knight Frank’s 2025 Destination Dubai report shows impressive growth numbers.
Record-Breaking Sales Numbers
Dubai sold 435 homes priced over $10 million in 2024. This number nearly matches London and New York combined. Dubai Real Estate Q1 2025 Market Report also shows that The first three months 111 more sales are also closed. Total real estate deals reached $207 billion last year. Home sales alone hit $100 billion with 170,000 properties sold.
The city broke another record in early March 2025. Home sales reached AED 100 billion faster than ever before. This shows the market isn’t slowing down at all. Wealthy buyers keep coming to Dubai in large numbers.
Who’s Buying Dubai Properties?
The Knight Frank report surveyed 387 wealthy individuals about Duba, whose average net worth is $22 million. Saudi, Indian, and British buyers lead the market demand. They made up over half of all luxury homes sold.
The UAE is the top target for Saudi investors. About 79 % want to buy luxury property in Dubai. East Asian buyers show strong interest at 68%. British investors follow closely at 67% interest level.
The survey revealed $10.3 billion of private capital targeting Dubai. Dubai was named the preferred emirate by 71%. Saudi buyers showed the highest preference at 80 %. British buyers followed at 74% interest level.
Investment Preferences Beyond Homes
Residential properties remain the top investment choice in Dubai. Branded residences in Dubai have emerged as the second most popular choice. About 49% of investors want branded residences now. Office market investments ranked third with 47% interest.
Many wealthy buyers want to build custom homes. About 83 % are interested in buying land plots. This trend exists across nearly all buyer nationalities. It shows Dubai has matured as a real estate market.
Most Popular Dubai Neighborhoods
Dubai Marina tops the list for luxury home neighborhoods. 28% of wealthy buyers want property there. Dubai Hills Estate, as one of the best areas to buy luxury villas in Dubai, comes in second at 24%. Emirates Hills ranks third with 23% buyer interest.
The super-rich have slightly different neighborhood preferences than others. Those worth over $50 million strongly prefer Dubai Marina. Forty-three % of ultra-wealthy buyers choose this area. Dubai Hills follows at 30% preference rate.
Rising Property Values
Dubai’s property values grew by 19.1 % in 2024. The average price reached AED 1,685 per square foot. This is 13.3% higher than the previous peak. The market continued growing into early 2025 as well.
Prices climbed another 3.7% in early 2025. This pushed values 17.6% above the 2014 peak. Villa prices in Dubai have seen the most dramatic increases recently. They grew 19.6% in the year ending March 2025.
The affordable villas in Dubai now cost AED 2,088 per square foot. This represents a 107.6% increase since early 2020. Property values continue to climb across all categories.
Big Budgets for Dubai Homes
The wealthy buyers surveyed have massive budgets for Dubai. The average budget is $32 million per property purchase. Many are willing to spend much more than that. Over half of ultra-wealthy buyers would consider $80 million properties.
Saudi investors have the highest average budget at $45.7 million. Indian buyers follow closely with $44.6 million to spend. British investors plan to spend around $30 million each. East Asian buyers have the lowest budgets at $23 million.
The current market cycle shows a significant change. Most buyers now want homes for themselves, not investments. Available inventory has dropped across the city recently. Homes priced above AED 50 million decreased by 48 %.
Knight Frank highlights this shift to genuine end-users. The reduced inventory across Dubai supports this trend. People are settling in the city for the long term. This creates a more stable real estate environment.
Government Success
Dubai’s government programs have strengthened the city’s appeal. The Golden visa programme, the 2040 master plan and the real estate strategy 2033 are some key pillars of them. The emirate attracts the world’s wealthiest individuals consistently. Both living and investment opportunities drive this interest. The momentum shows no signs of slowing down soon.
Faisal Durrani, Head of Research at Knight Frank, noted this. He said the strongest appetite comes from the wealthiest. Government programs successfully attract the rich to live and invest.
Research Methodology
Knight Frank conducted this research with partner YouGov. They surveyed wealthy individuals across multiple regions. The study included people from the UK, India, Saudi Arabia. It also covered East Asian buyers from China, Hong Kong, Singapore.
All participants had significant wealth excluding their main homes. The average net worth was $22 million per person. This comprehensive study shows Dubai’s continued market dominance.
Dubai’s luxury real estate market continues breaking records in 2025. The city remains the top choice for wealthy buyers worldwide. All signs point to continued growth in this vibrant market.
