Dubai’s prime residential market has experienced a remarkable surge in high-value property transactions, marking a significant 24.4% increase in deals exceeding AED10 million ($2.72 million) in 2025. This growth, reported by Savills Middle East, underscores the emirate’s enduring appeal to high-net-worth individuals and global investors seeking luxury real estate opportunities.

The year 2025 has been pivotal for Dubai’s real estate sector, with nearly 6,000 transactions recorded in the prime market by mid-November. This marks the fifth consecutive year of growth in both transaction volumes and capital values, driven by a combination of international demand, wealth inflows, and limited supply in established prime communities.

Global Demand and Strategic Appeal

Dubai’s stable political climate, favorable business conditions, and tax-efficient environment continue to attract a global clientele. Andrew Cummings, Head of Residential Agency at Savills Middle East, highlights the city’s resilience and depth in the luxury market. “Demand from global and regional high-net-worth buyers remains strong, supported by wealth migration and the city’s evolution as a world-leading lifestyle and business hub,” he noted.

The emirate’s appeal is further enhanced by its strategic positioning as a global wealth hub, a status reinforced by Savills’ Wealth Trends Report, which ranks Dubai as a leading destination for high-net-worth individuals. This is underpinned by the city’s strengths in business environment, lifestyle offerings, family infrastructure, and security.

Off-Plan Developments Drive Market Growth

A significant driver of the market’s growth has been off-plan transactions, which accounted for 73% of all prime transactions in 2025. This trend reflects a strong preference among buyers for new developments that promise modern amenities and bespoke living experiences. Notable projects contributing to this surge include The Oasis, Palm Jebel Ali, Eden Hills, and Jumeirah Golf Estates Phase 2.

Off-plan villas, in particular, have emerged as a dominant force, representing 51% of all transactions above AED10 million. This preference highlights a shift towards larger homes that offer privacy, expansive living spaces, and long-term ownership potential.

Villas and Waterfront Properties in Demand

Villas accounted for 70% of all transactions exceeding AED10 million in 2025, a stark contrast to the sub-AED10 million market, where apartments are more prevalent. The demand for villas is driven by buyers seeking space and privacy, aligning with the lifestyle aspirations of affluent families and individuals.

In addition to villas, prime apartments in waterfront locations and branded residential developments remain highly sought after. Dubai continues to lead globally in the branded residences sector, with key locations like Dubai Harbour, Downtown Dubai, and Palm Jumeirah attracting significant interest.

International Buyer Influence

European buyers have been particularly active in Dubai’s prime market, accounting for 58% of transactions over AED10 million facilitated by Savills. Asian buyers also represent a substantial portion, contributing to 23% of these high-value deals. This international interest is a testament to Dubai’s global allure as a premier real estate destination.

Outlook for 2026 and Beyond

Looking ahead, the outlook for Dubai’s prime and super-prime residential markets remains robust. Savills anticipates continued resilience into 2026, driven by ongoing population growth, wealth migration, and lifestyle-led purchasing decisions. The focus is expected to remain on villas, particularly those offering waterfront views and branded luxury, as buyers prioritize space and exclusivity.

As Dubai continues to evolve as a global hub for business and luxury living, its real estate market is poised for further growth. The city’s ability to attract high-net-worth individuals and families from around the world ensures that its prime residential sector will remain vibrant and competitive in the years to come.

In conclusion, Dubai’s prime real estate market is not just thriving; it is setting new benchmarks for luxury and exclusivity. With strategic developments, international appeal, and a robust economic framework, the emirate is well-positioned to sustain its growth trajectory, offering unparalleled opportunities for investors and residents alike.

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