Dubai is solidifying its status as the premier hub for luxury real estate on a global scale, buoyed by an impressive surge in investments amounting to $10 billion. This remarkable trend is detailed in the latest 2025 Destination Dubai report by Knight Frank, which highlights the emirate’s continuous growth in high-end property transactions and its unwavering appeal to affluent investors from around the world.
According to the report, the real estate market in Dubai has experienced significant expansion, achieving transaction values across all sectors that total an astounding $207 billion in 2024.
Residential sales dominated this growth, with nearly 170,000 properties sold for a cumulative value of $100 billion. This momentum is expected to carry into 2025, as home sales reached an impressive AED 100 billion by March 4—marking the fastest sales pace on record.
For the second consecutive year, Dubai has emerged as the busiest market globally for homes priced over $10 million, with 435 transactions in this category during 2024. This success brings Dubai close to the combined totals seen in London and New York.
Dubai Captures Investor Interest
In a standout first quarter of 2025, an additional 111 homes within this high-value bracket were sold, marking the highest total for any January to March period.
“Our research suggests a robust appetite for property among the wealthy in the UAE, a testament to government initiatives enhancing the emirate’s appeal as a prime location for those with significant financial resources,” stated Faisal Durrani, Partner – Head of Research, MENA.
Knight Frank’s survey of 387 high-net-worth individuals (HNWIs) revealed that a remarkable $10.3 billion in private capital is earmarked for Dubai’s residential market. Among Saudi HNWIs, 79 percent prioritized the residential sector, followed by 68 percent of East Asian HNWIs and 67 percent from the UK.
Additionally, branded homes ranked as the second most appealing sector at 49 percent, closely followed by office properties at 47 percent.
Interestingly, 71 percent of the respondents indicated that Dubai was their preferred emirate for real estate investments, with the highest interest coming from Saudi HNWIs at 80 percent, followed by British (74 percent), Indian (69 percent), and East Asian (61 percent) buyers.
“The evidence of demand from these nationalities aligns with our market experience. In fact, during 2024, Saudi, Indian, and British nationals accounted for over 50 percent of Knight Frank’s sales in Dubai,” noted Will McKintosh, Regional Partner – Head of Residential, MENA.
Top Luxury Neighborhoods Spotlighted
Among HNWIs, Dubai Marina stands out as the most sought-after neighborhood for residential purchases, capturing 28 percent of interest. Dubai Hills Estate and Emirates Hills followed closely, attracting 24 percent and 23 percent, respectively.
“The strong focus of the ultra-wealthy on luxury real estate in Dubai is a significant reason for the emirate being recognized as the busiest market for homes priced over $10 million,” emphasized Shehzad Jamal, Partner for Strategy & Consultancy in MENA.
For ultra-high-net-worth individuals—those with personal wealth exceeding $50 million—Dubai Marina remains the top choice at 43 percent, trailed by Dubai Hills Estate at 30 percent and Emirates Hills at 22 percent.
Dubai Real Estate Market Thrives
Throughout 2024, residential property values surged by 19.1 percent, reaching an average of AED 1,685 per square foot—13.3 percent higher than the peak recorded in 2014. This upward trend continued into 2025, with prices rising an additional 3.7 percent in the first quarter.
Villa prices demonstrated even stronger growth, increasing by 19.6 percent over the 12-month period ending Q1 2025, bringing the average to AED 2,088 per square foot—reflecting a remarkable 107.6 percent rise since Q1 2020.
According to Knight Frank, the current property cycle indicates a shift towards genuine end-users rather than speculators, evidenced by a noticeable decrease in inventory throughout the city. In the AED 50 million and above segment, available properties plummeted by 48 percent in 2024 compared to the previous year.
Durrani added, “Our research reveals that 83 percent of global HNWIs express interest in purchasing land in Dubai to build custom homes, highlighting a growing trend that transcends nationalities. The city’s rapid maturation throughout this property cycle is reflected in prospective HNWI buyers’ desire to settle here.”
Global Wealth Chooses Dubai
The survey further indicated that global HNWIs are willing to invest an average of $32 million in Dubai real estate.
Among individuals with personal wealth exceeding $50 million, 54 percent are considering purchasing properties valued above $80 million. Investors from Saudi Arabia reported the highest average budget at $45.7 million, while Indian buyers followed closely at $44.6 million. British investors reported an average budget of $30 million, and East Asian HNWIs had the lowest average at $23 million.
This research was conducted in collaboration with YouGov, surveying 387 HNWIs from the UK, India, Saudi Arabia, and East Asia (including China, Hong Kong, and Singapore), with an average net worth of $22 million, excluding their primary residence.