The boom in Dubai’s luxury market continued into the first quarter, with wealthy buyers again driving record sales of homes valued above $10 million.
Dubai’s Ultra-Luxury Real Estate Sales Hit New Heights in Q1 2025
Dubai’s high-end property market maintained its impressive momentum in the first quarter of 2025, with affluent investors once again driving unprecedented sales of homes valued above $10 million.
A total of 111 luxury properties changed hands during the first three months of the year, marking a 5.7% rise compared to the same timeframe in 2024, according to a recent analysis by Knight Frank. The report also highlighted that 12 of those transactions involved homes priced at $25 million or more.
This surge in activity illustrates how Dubai’s real estate sector has continued to attract significant buyer interest, even leading up to April’s global financial unease triggered by former U.S. President Donald Trump’s announcement of widespread international tariffs.
Luxury Demand Defies Global Concerns in Dubai Property Market
A view of Dubai’s residential towers. Photo Credit: Natalie Naccache/Bloomberg
Market experts have pointed to potential challenges for Dubai’s property industry in the near term. Global economic instability may cause wealthy individuals to become more cautious. Additionally, a drop in oil prices could impact the broader economies across the Gulf region.
Knight Frank’s Head of Middle East Research, Faisal Durrani, noted that the latest figures reflect a “persistent hunger among ultra-high-net-worth individuals (UHNWIs) for unique, prestigious properties.” However, he also warned that worldwide asset volatility could cast a shadow over Dubai’s real estate outlook.
“It’s early days, but we should be vigilant about shifting sentiment,” Durrani said. “Contagion from global pessimism remains a possibility, and that kind of emotional downturn can’t be mitigated locally.”
Since 2020, Dubai has witnessed a remarkable increase in property demand, largely due to its effective pandemic response and relaxed residency programs that have brought in an influx of international investors. The emirate’s upscale property sector — including opulent villas along its iconic, palm-shaped islands — has become especially attractive to global elites.
Palm Jumeirah stood out as a top-tier destination in Q1, registering 34 sales of homes priced over $10 million, which together amounted to a total value of $562.8 million, as reported by Knight Frank.
Looking ahead, Durrani raised another point of consideration — the effects of tariff-related disruptions on the construction supply chain.
“There’s a question about what impact, if any, these tariffs will have on our raw material supply,” he explained. “Will we be able to meet existing development targets, or will there be delays? Interestingly, a slowdown in project deliveries might not necessarily be a negative outcome.”
