Dubai: The Epicenter of Ultra-Luxury Real Estate
Dubai has reaffirmed its position as the leading market for ultra-luxury real estate globally. A recent report by Knight Frank highlights that for the fourth quarter of 2025, Dubai outpaced other cities in sales of homes priced at $10 million or above, showcasing its allure to the world’s wealthiest individuals.
Surge in Super-Prime Sales
The report indicates that across 12 key markets, there were 555 transactions involving homes that sold for at least $10 million during the last quarter, marking a 17% increase from the previous quarter. These sales generated approximately $10.3 billion, with the average price per transaction climbing from $18.1 million to $18.6 million. This upward trend is indicative of a growing demand for high-end properties, signaling robust activity in the luxury real estate sector.
Dubai Takes the Lead
Dubai dominated this high-value market segment, reporting 143 super-prime home sales amounting to $2.5 billion. This represents a significant 39% increase in the number of deals and a 27% rise in total sales value compared to the previous quarter. Overall, the emirate achieved a record year, selling 500 ultra-luxury homes—more than three times the total sold in London.
Factors Driving Wealth Migration
The increasing momentum in Dubai’s real estate market reflects a larger trend of global capital seeking refuge in low-tax, high-amenity locales. Dubai stands out for its unique combination of lifestyle appeal, economic stability, and favorable tax conditions, making it an attractive option for affluent buyers looking to invest in real estate.
Insights from the Market
Liam Bailey, the Global Head of Research at Knight Frank, noted two significant trends in the quarter’s performance. Firstly, Dubai’s impressive results are the culmination of a sustained influx of wealth and the delivery of new, high-end developments. Secondly, London’s drop to seventh place indicates how recent tax reforms have negatively impacted the super-prime market there.
Other Markets Respond
Hong Kong emerged as the second-most active market during this period, recording 81 transactions that totaled $1.57 billion. This development suggests a resurgence of confidence at the upper echelon of the market. Comparatively, New York City and Los Angeles trailed with 57 and 63 sales respectively, both markets experiencing a slight dip toward the year’s end due to a decrease in top-tier inventory and seasonal trends.
Notable Comebacks
Several markets demonstrated remarkable recoveries. Sydney, for instance, saw a dramatic increase of 58% in quarterly sales, amounting to 52 transactions. Miami also rebounded impressively, reporting an 82% jump with 40 sales. Meanwhile, London’s performance faltered, recording only 35 deals, which pushed it further down the rankings.
A Long-Term Overview
Over the past year, the report documented 2,164 super-prime sales that totaled around $40.5 billion. This performance represents the second-strongest annual results since 2021. Current trends indicate that Dubai is not just leading the super-prime race; it appears to be extending its lead further.
Dubai’s real estate market continues to attract global attention, bolstered by its luxury offerings and advantageous economic conditions. As the city maintains its appeal to high-net-worth individuals, the future looks bright for ultra-luxury real estate in this vibrant emirate.
