Dubai’s luxury real estate market set a new record in 2025, registering 500 transactions valued at more than $10 million, including 68 homes sold for over $25 million, according to the latest report by Knight Frank.
The year ended with exceptional performance, as 143 transactions worth more than $10 million were concluded in the final quarter of 2025, representing a growth of 39% compared to 103 transactions in the third quarter. As a result, the total value of sales in the luxury real estate sector rose to $9.05 billion in 2025, marking an increase of 27.7% compared to 2024, when the total value reached $7.09 billion.
These results confirm the findings of Knight Frank’s Dubai report, which highlighted the strong desire of high-net-worth individuals regionally and globally to own homes in the emirate, driven by its high quality of life and advanced infrastructure achieved through the government’s ambitious strategies.
Faisal Durrani, Partner and Head of Research for the Middle East and North Africa, commented that these indicators reflect Dubai’s growing appeal as a leading destination for the global elite.
Dubai has now taken the lead as the world’s most active market for properties priced above $10 million. Durrani noted that the major shift began to emerge in 2020, when only 30 sales were recorded in this category, rising to 500 transactions by the end of 2025.
This development embodies the emirate’s evolving reputation as a prime destination for luxury property ownership. Properties valued above $25 million also achieved an annual increase of 45% in the number of sales.
Dubai’s residential real estate market has distinguished itself from other regional and global cities through the development of integrated residential communities that offer residents a unique environment combining leisure, security, and comfort.
Will McIntosh, Regional Partner and Head of Residential for the Middle East and North Africa, said that these communities have widely attracted the global elite and reflected the sector’s success through record-breaking sales figures.
Palm Jumeirah, with its world-famous palm-shaped islands, continued to lead as the top-performing area in terms of sales value during the final quarter of 2025, recording 28 transactions exceeding $10 million.
Palm Jebel Ali, the larger project scheduled for completion in 2028, ranked second with a narrow margin, achieving 22 transactions. The communities of La Mer (16 transactions), Jumeirah 2 (13 transactions), and Tilal Al Ghaf (9 transactions) also joined the list of the top five residential communities where sales exceeded $10 million.
McIntosh added that Palm Jebel Ali, which is 50% larger in area than Palm Jumeirah, has emerged as a highly promising project. Although it still requires time to reach a level of maturity similar to other established areas, the 2025 sales figures provide clear evidence of growing demand from wealthy buyers seeking waterfront luxury and the high quality of life that Dubai offers.
