Dubai’s luxury real estate market is rapidly becoming a focal point for the world’s wealthiest individuals, particularly ultra-rich Indians, who now rank as the second-largest group of buyers in the city. This trend is intricately detailed in Knight Frank’s Destination Dubai 2025 report, which highlights the luxurious preferences and robust spending power of High Net Worth Individuals (HNWIs).
Top Spenders in Dubai’s Luxury Property Segment
The allure of Dubai’s luxury real estate is not just a passing trend; it reflects an ongoing shift in global wealth. As more ultra-wealthy individuals look for investment opportunities, the competition heats up among royal families, successful industrialists, and prominent celebrities. Notably, HNWIs from Saudi Arabia lead the charge, but Indians are not far behind. This competitive landscape showcases the city’s robust economic growth and its rising status as an international hub.
Preferred Locations for HNWIs in Dubai
When it comes to location, certain areas have emerged as hotbeds for luxury investments. According to the report, three neighborhoods stand out in terms of popularity among investors:
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Dubai Marina: An astonishing 28% of global HNWIs express a preference for this attractive waterfront locale, known for its vibrant lifestyle and stunning views.
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Dubai Hills Estate: Attracting 24% of investor interest, this community is celebrated for its greenery and carefully curated residential offerings.
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Emirates Hills: Selected by 23% of wealthy buyers, this exclusive area is renowned for its opulent villas and golf course surroundings.
Among the ultra-rich, defined as those with a net worth exceeding USD 50 million, these preferences become even more pronounced:
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Dubai Marina: A commanding 43% favor this area for its luxury amenities.
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Dubai Hills Estate: This estate garners 30% of interest from ultra-wealthy buyers.
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Emirates Hills: Holds an impressive 22% appeal among this elite group.
“Dubai Marina continues to be the poster-child of Dubai’s property market,” said Shehzad Jamal, partner – strategy and consultancy, MENA at Knight Frank. “Its appeal among the ultra-wealthy remains unparalleled.”
Market Performance and Price Trends
2024 proved to be a remarkable year for Dubai’s luxury residential market, characterized by robust growth in property values:
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Overall property prices surged by 19.1% year-on-year, reaching an average of AED 1,685 per square foot, eclipsing the previous peak set in 2014 by 13.3%.
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Villa prices experienced a notable 19.6% increase, now averaging AED 2,088 per square foot, reflecting a staggering 107.6% rise compared to Q1 2020.
This unprecedented demand can be attributed to preferences for standalone villas, beachfront homes, and branded residences, which allow buyers immediate access to Dubai’s opulent lifestyle.
Key Market Insights
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In 2024, Saudi, Indian, and British nationals accounted for over 50% of Knight Frank’s luxury property sales in the city.
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A striking 71% of global HNWIs now cite Dubai as their preferred emirate for property investment:
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Saudis: 80%
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British: 74%
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Indians: 69%
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East Asians: 61%
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Dubai Leads Global USD 10M+ Property Sales
For the second consecutive year, Dubai has taken the crown as the busiest market globally for sales of homes priced at over USD 10 million. The past year witnessed:
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435 transactions in this high-stakes category.
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In Q1 2025 alone, 111 luxury homes sold for over USD 10 million, marking the highest Q1 volume recorded to date.
From established industrialists to global pop culture icons, Dubai continues to magnetize elite buyers, solidifying its status as a premier destination for luxury real estate investments.
