Dubai Luxury Market Records 3,731 Ultra-Premium Sales in H1 2025

DUBAI, UAE – 14 July 2025 - Dubai’s luxury real estate market has achieved a record-breaking performance in the first half of 2025, with 3,731 properties sold for over USD 2.72 million (AED 10 million), a 62.7% increase compared to H1 2024. This surge marks the strongest half-year performance in the city’s history, driven by sustained global demand and growing long-term investment confidence.

Robust Q2 Performance & Structural Shift

The second quarter alone saw 2,388 ultra-premium transactions, the highest volume recorded in any quarter. Today, ultra-luxury homes account for more than 4% of total property sales, up significantly from just 1.1% in 2020, highlighting a fundamental transformation in buyer preferences.

Iconic Deals Showcase Market Maturity

H1 standout deals included a USD 115.7 million (AED 425 million) mansion in Emirates Hills and a USD 81.7 million (AED 300 million) beachfront villa on Palm Jumeirah. These landmark transactions underscore Dubai’s emergence as a premier destination for global elite residences.

Brokerage Growth Mirrors Market Boom

Engel & Völkers Middle East reported a remarkable 48% year-on-year rise in transactions and a 40% increase in net commission income in H1 2025, reflecting robust activity not only at the ultra-luxury end but also in the upper mid-market.

Foreign buyers led the charge, with investors from India at the forefront, followed by Germany, the UK, Portugal, Spain, Austria, and the Netherlands. These global investments are reinforcing Dubai’s position as a resilient and desirable real estate hub.

Executive Perspective

Daniel Hadi, CEO of Engel & Völkers Middle East, emphasized the sector's transformation:

“Dubai is no longer simply a hotspot for speculative investors but is now a permanent home for the world’s elite. With 62 per cent growth in AED 10 million‑plus sales and a growing population of resident millionaires, the luxury segment is no longer a niche, it is central to Dubai’s real estate identity.”

He further noted the long-term nature of this buying trend across elite locations like Emirates Hills and Palm Jebel Ali.

Market-Wide Growth & Demographic Momentum

Across all segments, Dubai’s residential market saw sales rise 22.7% year-on-year, reaching levels six times higher than H1 2020. Off-plan transactions surged nearly 20%, with 54,742 deals; secondary-market sales climbed 26.8%, accounting for 41.1% of total volume.

High-end apartments and villas also saw strong growth, units sold inched up 18.2%, while villa transactions jumped 27.6%, valued at AED 78.3 billion (~USD 21.3 billion). Townhouses recorded 57.4% growth, totalling AED 42 billion (~USD 11.4 billion).

Population & Wealth Growth

Dubai’s population is projected to top 4 million residents in 2025, the fastest growth since 2018. At the same time, the UAE is set to attract 9,800 new millionaires this year, more than any other country, fueled by favorable tax regimes, lifestyle appeal, and strategic investment incentives.

Daniel Hadi expressed confidence in ongoing market strength:

“With no significant oversupply risks on the horizon and demand surging across every segment, Dubai’s residential market is set to remain on an upward trajectory.”

Supported by initiatives such as the First Home Buyer Programme, AI acceleration framework, and entrepreneurial policies, Dubai’s real estate momentum is expected to continue into the latter half of 2025 and beyond.