Surging Demand in Dubai’s Luxury Property Sector
The luxury real estate market in the city of Dubai is maintaining its boom like stage as since 2020 the city is experiencing the fourth year of high transaction levels and value appreciation in the property market. The recent study prepared by Savills in their current Dubai Prime Residential Report demonstrates that the boom is influenced not only economically, with stable conditions and clear political situation, but also by the tax-free menu that makes Dubai one of the most attractive destinations in terms of luxury real estate investment in the world.
The tendencies of the market towards the home owning sector and more precisely to the sector of expatriates has increased the soaring demand for spacious villas and branded residences. The movement combined with high standards of lifestyle that Dubai has to offer together with advanced infrastructure has resulted in breaking the transaction records especially in properties priced above AED 10 million.
Key Drivers Behind the Prime Residential Boom
There are various reasons being attributed to the success of the high-end housing industry in Dubai:
- A conducive banking sector with regulations that attract investors
- Reformed visa, such as the Golden Visa offered to global property owners
- Safe and stable environment
- Post-pandemic economic recovery
Among the most revealing indication of this boom is the number of deals of homes with AED 10 million and up property values:
- The number of such transactions has increased by more than 4,600 (in history), to 4,670 in 2024 compared to 469 in 2020
- The number of completed sales was over 1,300 units of homes sold in the first quarter of 2025 (it is a plus of 31 percent thereof on a same basis the previous year)
It is notable that the off-plan properties have experienced a drastic increase:
- 69 percent of all AED 10M+ transactions happening in 2024
- Compared to 14 percent in 2020
This change can be treated as a sign of the increasing trust in the future manpower of the market and the desire to see something unique and contemporary.
Top Neighbourhood Fueling Market Growth
There are a number of sections that can be mentioned as the most luxury-residential investment territory:
The topmost sales of AED 10M+ have been registered at:
- Palm Jebel Ali
- District One West
- The Acres (villas)
When it comes to the apartments, the most attractive locations include:
- Palm Jumeirah
Dubai Harbour
Downtown Dubai
- Palm Jumeirah
One of the most notable examples would be the story of Jumeirah Islands where:
- 89 were sold more than AED 10 million in 2024 — a huge jump as that is not the case prior to the year 2021
- In most of these properties, the renovation was like high-end further increasing the value and attractiveness
Presently, the luxury segment is being dominated by villas:
- 70 percent of AED 10M+ transactions by 2024
- Despite waterfront apartments that have a higher selling price per square foot (it accounts AED 5,400), the supply holds a steady competition throughout all the forms
- Particularly the branded ones, which have curated experiences and elitist services
Investment Opportunities in Dubai’s High-End Real Estate
Dubai luxury market is an unusual cocktail of capital appreciation and potential rental yields in the eyes of the investor. Without capital gains and property tax, shares are more profitable as compared to the markets in the other parts of the globe. And then consider the fact that they have flexible ownership laws to foreigners and access to permanent residency by investing in real estate and the argument is even made.
The city of Dubai is now the most vibrant branded residence in the whole world and is expected to contribute 40 percent of branded residence in the Middle East and Africa in 2031. New projects by some of the renowned players like Six Senses, DAMAC and Emaar are taking the center-stage, giving the world the best of the ultra-luxurious stay that runs in line with the elite luxurious life.
Future Outlook for Dubai’s Premium Property Market
The prospects are good in the future. Savills expects the prime segment growth of 810% in the future. It is set to continue this momentum further through migration of wealth, creation of mega communities and new lifestyle master plans.
Currently there are future projects such as the Jebel Ali Racecourse redevelopment, the Jumeirah Golf Estates Phase 2 and Emaar’s own Grand Polo Club & Resort which will bring more good quality inventory to the market. The events will also strengthen the position of Dubai as a luxury real estate location in the world.
As the city goes on innovating and growing, both the investors and homeowners are bound to enjoy continual capital appreciation, good living standards and an excellent lifestyle environment, which is globally unmatched.
