### Dubai’s Prime Residential Market: A Flourishing Landscape
Dubai’s real estate sector is booming, with 2024 marking the fourth consecutive year of growth in both transaction volumes and capital values. According to analysis by Savills, the city is experiencing a renaissance in its prime residential market, driven by a combination of strong economic performance, favorable political policies, and an attractive tax-free environment.
### Shifting Trends: Renters to Homeowners
One of the most significant changes in Dubai’s property landscape is the marked shift from renting to homeownership among expatriates. This transition has led to increased demand for larger properties and premium developments equipped with modern amenities. As a result, there has been a noticeable surge in transactions exceeding AED 10 million.
While a staggering 93% of all transactions in Dubai reside below AED 5 million, it is the AED 10 million plus segment that has seen extraordinary growth. Since the pandemic, the number of transactions in this premium market segment has skyrocketed—from merely 469 in 2020 to an impressive 4,670 in 2024. Q1 of 2025 alone recorded over 1,300 homes changing hands at the AED 10 million plus level, showcasing a remarkable 31% increase year-on-year.
Source: Savills
### Attracting High-Net-Worth Individuals
Andrew Cummings, Head of Residential at Savills, underscores that Dubai’s prime residential market increasingly attracts high-net-worth individuals seeking space, privacy, and an unparalleled quality of life. This trend is contributing to a growing appetite for luxury villas and branded residences.
Interestingly, off-plan transactions now represent 69% of all AED 10 million plus sales, a significant leap from only 14% in 2020. This shift indicates rising confidence in the future stock and evolving buyer preferences. New developments like Palm Jebel Ali, District One West, and The Acres have recorded some of the highest transaction volumes, while established hotspots such as Dubai Harbour, Palm Jumeirah, and Downtown Dubai continue to be favored in the apartment segment.
### Luxury Villas: A Case Study in Success
Jumeirah Islands serves as a prime example of the strength of the luxury villa segment. In 2024, the area saw 89 homes sold above AED 10 million, an impressive turnaround from having no such transactions before 2021. Furthermore, properties selling for over AED 20 million have gained traction, driven largely by exquisite renovations.
Villas now dominate the AED 10 million plus market, accounting for 70% of transactions in 2024. Although waterfront apartments remain highly sought after, commanding prices averaging AED 5,400 per square foot, demand remains robust across both formats, especially for branded and lifestyle-driven projects.
Source: Savills
### An Optimistic Outlook for the Future
Dubai has established itself as the most dynamic city globally for branded residences and is projected to deliver 40% of all such developments in the Middle East and Africa by 2031. The future appears bright for Dubai’s prime segment, with Savills projecting growth between 8% and 10% for 2025. Factors such as wealth migration, new masterplan communities, and lifestyle-oriented developments are reshaping the upper-tier housing market.
Recent announcements regarding master plans—including the Jebel Ali Racecourse development and a second phase for Jumeirah Golf Estates—are set to introduce further premium products into Dubai’s residential market. Additionally, luxury launches like Emaar’s Grand Polo Club and Resort promise to further enrich the landscape.
Whether you’re a prospective buyer, a real estate investor, or simply intrigued by the developments in Dubai, the current trajectory of its prime residential market is indeed a phenomenon worth watching.
