Dubai’s luxury real estate market has delivered its strongest half-year performance on record, with 3,731 properties sold above AED 10m ($2.72m) in H1 2025 — a 62.7 per cent increase compared to the same period in 2024.
The second quarter alone saw 2,388 high-end transactions, the highest ever recorded in a single quarter.
Ultra-luxury now represents over 4 per cent of total market volume, up from just 1.1 per cent in 2020 — highlighting a structural shift in demand.
Standout transactions in H1 2025 included a AED 425m ($115.7m) mansion sale in Emirates Hills and a AED 300m ($81.7m) beachfront villa on Palm Jumeirah.
Engel & Völkers Middle East’s performance reflects this surge in premium demand. The brokerage recorded a 48 per cent year-on-year increase in transactions and a 40 per centrise in net commission income (NCI) in the first half of 2025, driven by sustained activity across the luxury and upper mid-market segments.
Daniel Hadi, CEO of Engel & Völkers Middle East, said: “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 AED10m-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.
“From Emirates Hills to Palm Jebel Ali, we’re seeing a structural shift in demand from global capital moving here for the long term.”
Indian investors led the charge, followed by buyers from Germany, the UK, and Portugal. Additional demand came from Spain, Austria, and the Netherlands.
Market-wide Dubai real estate growth highlights in H1 2025
Residential Sales
- Up 22.7 per cent YoY
- Transaction volume now six times higher than H1 2020
Off-plan Market
- 54,742 transactions, up 19.9 per cent
- Hotspots: JVC, Business Bay, Dubai Residence Complex
Secondary Market
- 38,168 sales, up 26.8 per cent
- First H1 increase in share in years (41.1 per cent of total volume)
- Key areas: Dubai Marina, Downtown, MBR City
Apartments
- 71,879 units sold, up 18.2 per cent
- Represents 79 per cent of all sales and over 50 per cent of total market value
Villas
- 27.6 per cent growth in transactions
- Total value: AED78.3bn ($21.3bn), up 53.5 per cent
- Emerging villa hubs: The Oasis, Grand Polo Club, The Valley
Townhouses
- Fastest-growing segment with 13,619 transactions, up 57.4 per cent
- Total value: AED42bn ($11.4bn), up 64.7 per cent
- Driven by launches in Damac Islands, Damac Hills 2, and The Valley
The surge in ultra-luxury activity is mirrored by Dubai’s broader economic trajectory. The emirate is on track to surpass 4m residents this year, its fastest population growth since 2018 (Dubai Statistics Centre).
Simultaneously, the UAE is expected to attract 9,800 new millionaires in 2025, more than any other country, reinforcing its status as a premier wealth haven.
This ongoing inflow is underpinned by favourable tax conditions, lifestyle advantages, and long-term economic policies aligned with global capital migration trends.
Recent initiatives like the First Home Buyer Programme, US–UAE AI Acceleration Framework, and Dubai’s top global ranking for entrepreneurship continue to draw global capital and talent.
Hadi said: “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,”
