Dubai Leads Global Luxury Real Estate with $10B Investment Surge

Dubai has solidified its position as the world's leading luxury real estate market, attracting a remarkable $10.3 billion in private capital targeting its residential sector, according to Knight Frank's 2025 Destination Dubai report. This surge underscores the city's appeal to high-net-worth individuals (HNWIs) seeking premium property investments.

Record-Breaking Sales in 2024

In 2024, Dubai recorded 435 residential sales exceeding $10 million, maintaining its status as the busiest market globally for ultra-luxury homes for the second consecutive year. This figure nearly matches the combined total of similar sales in London and New York, highlighting Dubai's dominance in the high-end real estate segment.

The momentum continued into 2025, with 111 ultra-luxury homes sold in the first quarter alone—the highest number ever recorded for this period. Knight Frank's survey of 387 HNWIs from regions including India, Saudi Arabia, the UK, and East Asia revealed that Dubai is the preferred destination for real estate acquisition, with 71% of respondents expressing interest in the emirate.

Global HNWI Interest and Investment

Knight Frank’s survey of 387 high-net-worth individuals (HNWIs) from India, Saudi Arabia, the UK, and East Asia, with an average net worth of $22 million, showed that $10.3 billion of private capital is targeting Dubai’s residential market.

The UAE’s residential sector ranks as the top target for Saudi HNWIs (79%), followed by East Asian HNWIs (68%) and UK investors (67%). Branded homes emerged as the second most sought-after real estate sector at 49%, with the office market (47%) completing the top three preferences.

Dubai was named as the preferred emirate for real estate acquisition by 71% of respondents, with this figure highest among Saudi HNWIs (80%), followed by British (74%), Indian (69%), and East Asian (61%) buyers.

Expert Insights

Faisal Durrani, Partner – Head of Research, MENA at Knight Frank, commented:

“As we have found in our research in previous years and mirroring the experience of our teams, the strongest appetite for a real estate purchase in the UAE comes from those with the greatest wealth and is a testament to the success of the government’s programmes to strengthen the emirate’s appeal as a place for the world’s wealthy to live and invest.”

Will McKintosh, Regional Partner – Head of Residential, MENA at Knight Frank, added:

“The depth of demand from these nationalities is also reflective of our own market experience. Indeed, during 2024, Saudi, Indian, and British nationals accounted for just over 50% of homes sold by Knight Frank in Dubai.”

Petri Mannila, Partner and Head of Prime Residential at Knight Frank UAE, noted that Dubai has swiftly positioned itself as the global leader in luxury home sales—an impressive feat for a market that is still relatively young. He attributed this rise to a growing wave of ultra-high-net-worth individuals moving to the city with their families and businesses, driving strong demand in the high-end residential segment.

In 2024, 52% of all luxury transactions were recorded in the primary (off-plan) market. Among developers, Omniyat, Nakheel, and Emaar Properties dominated activity, collectively accounting for 46% of luxury sales. Omniyat led with 19%, followed by Nakheel at 16%, and Emaar with 11%.

One standout project is Emaar’s The Oasis – Lavita, located near Jumeirah Golf Estates. Launched in the third quarter of 2024, it has quickly become the year’s top-performing luxury development. Of the 43 villas priced above USD 10 million, 29 have already been sold, according to Knight Frank.

Dubai’s prime residential sector, including areas such as Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands, and Emirates Hills as defined by Knight Frank, has seen a notable upswing in activity and value.