In Q1 2025 alone, over 1,300 homes changed hands at this level, representing a 31 percent increase year-on-year.
Dubai’s luxury real estate market continues to witness sustained growth, marking a fourth year of rising transaction volumes and capital values. The upward momentum continues to be underpinned by strong investor appetite, favorable regulatory conditions, and increased demand for premium homes in Dubai’s real estate market.
The AED10 million+ ($2.72 million) segment, a key benchmark of Dubai’s prime residential landscape, saw a tenfold rise in transactions over the past four years, soaring from 469 in 2020 to 4,670 in 2024, according to Savills Middle East’s first Dubai Prime Residential 2025 report. This surge culminated in over 1,300 homes changing hands in Q1 2025 alone, a remarkable 31 percent increase compared to the previous year.
“Dubai’s prime residential market continues to attract high-net-worth individuals seeking space, privacy, and superior lifestyle quality. This is particularly evident in the consistent demand for luxury villas and branded residences,” said Andrew Cummings, head of residential agency at Savills Middle East.
Emerging Luxury Hotspots Across Dubai
The luxury real estate market in Dubai is witnessing a significant shift toward off-plan transactions. These now account for 69 percent of all AED10 million+ sales, a drastic increase from just 14 percent in 2020. This change signals rising confidence among investors in future developments and a notable shift in buyer preferences.
In the villa segment, newly developed areas such as Palm Jebel Ali, District One West, and The Acres are recording some of the highest transaction volumes. Meanwhile, for apartments, prime locations like Dubai Harbour, Palm Jumeirah, and Downtown Dubai continue to be key hotspots.
One exceptional example of the strength of Dubai’s luxury villa segment is Jumeirah Islands, where 89 homes sold for over AED10 million in 2024. This represents a significant transformation, as there were no similar transactions before 2021. Additionally, the area has seen an uptick in properties selling for more than AED20 million, largely attributed to extensive renovations that appeal to upscale buyers.
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Positive Growth Outlook for Dubai’s Prime Segment
Currently, the villa segment overwhelmingly dominates the AED10 million+ market, constituting 70 percent of transactions in 2024. Even though waterfront apartments command higher prices per square foot—averaging AED5,400—demand remains robust across both sectors, particularly for branded and lifestyle-focused developments.
Dubai holds the reputation as the most active city globally for branded residences. It is anticipated that by 2031, the city will deliver 40 percent of all branded developments in the Middle East and Africa. This robust demand bodes well for the continued growth of the prime real estate segment.
“Recent master plan announcements, including developments like Jebel Ali Racecourse and the second phase of Jumeirah Golf Estates, along with new launches like Emaar’s Grand Polo Club and Resort, are set to introduce additional prime products to Dubai’s residential market,” Cummings noted.
Savills anticipates that this momentum will carry through 2025, projecting an impressive growth range of 8–10 percent for the prime real estate segment. Factors such as wealth migration, innovative master-planned communities, and lifestyle-oriented developments are reshaping Dubai’s upper-tier housing market.
