Dubai’s Prime Property Market Jumps 24.4% as Global Wealth Continues to Flow In

• Prime home prices rise 24.4% year-on-year with 6,000+ high-value deals

• European buyers dominate luxury transactions, followed by Asian investors

• Villas lead sales, while waterfront and branded apartments command top prices

Dubai: Dubai’s prime residential real estate market continues its strong upward trajectory, posting a 24.4% year-on-year growth in 2025, supported by sustained demand from high-net-worth individuals across Europe and Asia. According to the Savills Middle East Dubai Prime Residential Market Report, more than 6,000 residential transactions, each valued above AED 10 million ($2.72 million), were recorded by mid-November.

The report highlights Dubai’s political stability, pro-business policies, and tax-efficient environment as the primary drivers attracting global wealth. These factors, combined with lifestyle advantages and infrastructure development, have positioned the city as one of the most attractive destinations worldwide for ultra-high-net-worth individuals.

Wealth Migration and Off-Plan Supply Drive Growth

Savills notes that off-plan residential launches have played a crucial role in maintaining transaction momentum. New master-planned communities such as The Oasis, Palm Jebel Ali, and Eden Hills have significantly boosted activity, offering buyers access to large-format homes, modern amenities, and long-term capital appreciation potential.

The data also points to a clear shift toward larger, family-oriented homes, reflecting ongoing wealth migration into Dubai. International buyers relocating to the city are prioritising space, privacy, and access to high-quality community infrastructure, including schools, healthcare, and recreational facilities.

Villas Dominate, Apartments Command Premiums

While villas accounted for the majority of prime transactions, luxury apartments in waterfront and branded developments continued to achieve higher price benchmarks. Buyers seeking turnkey luxury living and iconic locations showed strong interest in branded residences and high-rise developments offering marina or skyline views.

According to the report, Palm Jumeirah recorded the highest average villa prices, with rates touching AED 6,000 per square foot for homes above AED 10 million. This was followed by Jumeirah Islands and Dubai Hills Estate, both of which continue to benefit from limited supply and strong end-user demand.

Top-Performing Communities

Among villa communities, The Oasis emerged as the top performer, with 1,024 villa transactions above AED 10 million. Palm Jebel Ali followed closely, registering over 560 villa sales, reflecting growing interest in Dubai’s next phase of luxury waterfront living.

On the apartment front, Dubai Harbour led the market with around 250 high-value transactions, while Downtown Dubai ranked second. Palm Jumeirah and Business Bay also remained highly sought-after locations, driven by lifestyle appeal and proximity to key business and leisure districts.

European and Asian Buyers Lead the Market

Buyer data from Savills’ Residential Agency team shows that European investors accounted for 58% of all prime transactions, making them the most active participant group in Dubai’s luxury market. Asian buyers followed with a 23% share, reflecting growing interest from countries such as India, China, and Southeast Asia.

According to Savills, buyer decisions are largely influenced by location, access to international schools, ease of commute, availability of amenities, and enhanced privacy within gated or low-density communities.

Commenting on market sentiment, Andrew Cummings, Head of Residential Agency at Savills Middle East, said demand from both global and regional high-net-worth buyers remains robust. He attributed this to ongoing wealth migration, constrained supply in established prime locations, and Dubai’s evolution as a leading global hub for lifestyle and business.

Dubai Tops Global HNW Destination Rankings

The report places Dubai at the top of the global destination list for high-net-worth individuals, reinforcing its position as a safe haven for capital and long-term residence. Analysts believe that with continued infrastructure investment, new luxury supply, and strong international demand, Dubai’s prime real estate segment is likely to remain resilient in the coming years.