The Dubai real estate market is witnessing remarkable growth, particularly in ultra-prime home sales during Q3 2025. The high-end residential segment has seen a significant uptick, with sales for properties exceeding $10 million experiencing a 24% increase compared to the same period last year. According to data from global property consultancy Knight Frank, this surge reflects a robust demand for luxury living in one of the world’s most sought-after destinations. As Dubai continues to establish itself as a premier hub for affluent buyers, the trend in ultra-prime home sales indicates a thriving market.
Dubai’s Luxury Home Sales Surge
In the first nine months of 2025, a total of 357 homes priced above $10 million were sold, demonstrating a 26% rise from the 282 transactions recorded during the same period in 2024. This growth underscores the increasing allure of Dubai’s luxury real estate, particularly among high-net-worth individuals (HNWIs) eager to invest in exclusive properties.
Transaction values in the ultra-prime segment have escalated at an even faster pace than the volume of deals. In Q3 2025, total sales in the $10 million-plus category exceeded $2 billion, marking a 54% year-on-year increase. The average transaction value also spiked, climbing to more than $19.4 million, which is up by 23.8% compared to Q3 2024.
Faisal Durrani, Partner and Head of Research, MENA, noted, “The fact that the growth in total transaction values for $10 million homes is rising faster than the number of deals is a stark indication of how fast prices are rising in this exclusive segment of the market. Dubai’s luxury market has cemented its status as a safe haven for international and local buyers. It looks set to be another record-breaking year for the $10 million-plus homes market, following the 435 deals registered during 2024.”
The highest price recorded in Q3 was a staggering $95.3 million for a seven-bedroom mansion in Asora Bay by Meraas, situated in the picturesque La Mer community.
“Community living and exclusivity remain a big draw for HNWIs looking to purchase in Dubai. La Mer exemplifies this with its combination of wellness-focused beachfront living, extensive amenities, and proximity to prime retail and leisure destinations. Destination communities like La Mer place a strong emphasis on lifestyle and world-class amenities, which resonates with domestic and international buyers,” explained Will McKintosh, Regional Partner and Head of Residential, MENA.
Market Dynamics and Trends
Knight Frank’s Prime Index, which evaluates luxury real estate values across ten key communities in Dubai, recorded an average of AED3,767 per square foot in Q3 2025. This represents an 8.5% increase from AED3,475 per square foot in Q3 2024. Such growth demonstrates the increasing desirability of ultra-prime properties in the city.
Palm Jumeirah emerged as the most active area, commanding 34% of all prime residential transactions during the quarter, followed closely by Jumeirah 2, which accounted for 17% of sales in the $10 million-plus category.
“Our analysis shows global HNWI budgets considering a home purchase in Dubai stand at $32 million, topping out at $45.7 million for Saudi nationals. Overall, 15% of HNWIs from Saudi Arabia, the UK, India, China, Hong Kong, and Singapore are prepared to spend upwards of $80 million on a home in the city this year, and there remains a clear gap in the market for uber-luxury housing,” Durrani concluded, emphasizing the continued potential for growth in Dubai’s ultra-prime home sales.