Dubai’s real estate market continues to make headlines with its remarkable performance, particularly in the ultra-prime segment. The third quarter of 2025 has seen a significant surge in the sale of high-end homes, marking a new chapter in the city’s luxury real estate narrative. According to a recent report by Knight Frank, Dubai’s property market recorded a 24% increase in the sale of homes priced over $10 million compared to the same period last year.

The luxury segment’s growth was primarily driven by an impressive 17 transactions exceeding $25 million, more than doubling the figures from Q3 2024. This surge underscores the city’s growing appeal to high-net-worth individuals (HNWIs) seeking exclusive residences. The total number of homes sold in the $10 million-plus category reached 357 in the first nine months of 2025, reflecting a 26% increase from the previous year.

Palm Jumeirah: The Epicenter of Luxury

Palm Jumeirah emerged as the most active area, accounting for 34% of all prime residential transactions during the quarter. This iconic man-made island continues to attract affluent buyers, drawn by its unique combination of luxury living and stunning waterfront views. Following Palm Jumeirah, Jumeirah 2 captured 17% of the $10 million-plus sales, further cementing Dubai’s status as a global hub for luxury real estate.

The demand for ultra-prime properties has not only increased in volume but also in value. The total sales for the $10 million-plus segment exceeded $2 billion in Q3 2025, marking a 54% year-on-year increase. The average transaction value rose to over $19.4 million, up by 23.8% from Q3 2024. This trend indicates a sharp rise in property prices within this exclusive market segment.

Exclusivity and Community Living: Key Attractions

High-net-worth individuals are increasingly drawn to Dubai’s luxury market due to its reputation as a safe haven for both international and local buyers. The highest price recorded in the third quarter was a staggering $95.3 million for a seven-bedroom mansion in Asora Bay by Meraas, located within the La Mer community. This sale highlights the allure of community living combined with exclusivity, a significant factor for buyers looking for more than just a home.

La Mer, with its wellness-focused beachfront living, extensive amenities, and proximity to prime retail and leisure destinations, exemplifies the type of lifestyle that appeals to affluent buyers. Such destination communities place a strong emphasis on lifestyle and world-class amenities, resonating with both domestic and international purchasers.

Global Interest and Investment Trends

Dubai’s luxury real estate market is attracting significant interest from global HNWIs. Knight Frank’s analysis shows that these individuals are considering average budgets of $32 million for home purchases in Dubai, with Saudi nationals willing to spend up to $45.7 million. Notably, 15% of HNWIs from countries like Saudi Arabia, the UK, India, China, Hong Kong, and Singapore are prepared to invest upwards of $80 million on a home in the city this year.

This global interest underscores a clear gap in the market for uber-luxury housing, which Dubai is well-positioned to fill. The city’s appeal is further enhanced by its strategic location, world-class infrastructure, and a lifestyle that blends modernity with tradition.

Rising Prices and Future Prospects

Dubai’s luxury market is witnessing a rapid rise in property prices, as evidenced by Knight Frank’s Prime Index. The index, which tracks values across ten key luxury communities in Dubai, recorded an average of AED 3,767 per square foot in Q3 2025, reflecting an 8.5% increase from Q3 2024. This upward trend in prices is a testament to the growing demand and limited supply of ultra-prime properties.

Looking ahead, the market for $10 million-plus homes in Dubai is poised for another record-breaking year. With 435 deals registered in 2024, the current trajectory suggests that 2025 will surpass these figures, driven by both local and international demand. As Dubai continues to cement its status as a global leader in luxury real estate, the city’s ultra-prime market remains a beacon for high-net-worth individuals seeking unparalleled exclusivity and lifestyle offerings.

In conclusion, Dubai’s real estate market is not just thriving; it is setting new benchmarks in the luxury segment. The city’s ability to attract global investors and maintain robust growth in ultra-prime home sales is a testament to its enduring appeal and strategic vision. As the year progresses, all eyes will be on Dubai to see how it continues to shape the future of luxury real estate.

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