Dubai’s luxury property market hits landmark high in 2025 with 500 sales valued at over $10 million
After growing by 194 percent since Q4 2020, prime values are expected to expand by a further 3 percent during 2026
Dubai’s luxury property market hit a new high in 2025, with 500 sales valued at over $10 million, including a record 68 homes changing hands for more than $25 million, according to the latest analysis from Knight Frank.
A strong finish to the year saw 143 $10 million+ sales recorded in the fourth quarter of 2025, representing a 39 percent increase on the 103 transactions completed in Q3. This pushed the total value of transactions in this segment in 2025 to $9.05 billion, a 27.7 percent increase on 2024, when the total sales value was $7.09 billion.
“These latest figures bear out the findings of our Destination Dubai report, which revealed the huge appetite among regional and global high-net-worth individuals [HNWI] to own a home in Dubai, attracted by the high quality of life, world-class amenities and infrastructure, enabled by the government’s ambitious investment programs,” said Faisal Durrani, Partner – Head of Research, MENA.
Dubai becomes world’s busiest market for $10 million+ homes
Durrani explains that Dubai’s meteoric rise as the world’s busiest property market for $10 million+ homes, having increased from just 30 sales in 2020 to 500 by the end of 2025, is best reflected in the emirate’s growing reputation as a magnet for the global elite. Indeed, in the ultra-prime $25 million+ segment, there was a 45 percent year-on-year jump in the number of sales.
“Dubai’s residential market has differentiated itself from regional cities and many other global gateway locations through the creation of destination communities that integrate leisure, safety and convenience into self-contained ecosystems. These one-of-a-kind neighborhoods are attracting the attention of the global elite at a scale never seen before, and the record luxury home sales figures reflect this,” said Will McKintosh, Regional Partner – Head of Residential, MENA.
Perhaps the most globally recognized of these prime communities, with its iconic islands in the shape of a palm tree, the Palm Jumeirah retained its position as the top performer in this segment in Q4 2025, accounting for 28 transactions at more than $10 million.
However, the even larger Palm Jebel Ali, which is due for completion in 2028, was close behind with 22 sales. La Mer (16), Jumeirah 2 (13) and Tilal Al Ghaf (9) completed the top five communities by number of $ 10 million+ sales in Q4.
“At 50 percent larger than its established neighbor, Palm Jumeirah, Palm Jebel Ali remains a destination to watch. While it will obviously take time to reach the maturity of other established communities, the 2025 sales figures are a welcome indication of its high potential and the growing demand from the wealthiest buyers for prime waterfront property and the luxury Dubai lifestyle,” he added.
$149.7 million apartment marks highest-ever sale price for a penthouse in the UAE
The most expensive individual purchase in Q4 2025 was in the Business Bay community, where a 6-bedroom apartment in Bugatti Residences by Binghatti sold for $149.7 million (AED550 million). The deal for the 47,200 square foot residence was not only a record for the quarter but also the highest sale price ever recorded for a penthouse in the UAE, eclipsing the previous record holder – the 22,000 square foot penthouse at the Como Residences on the Palm Jumeirah, which sold for (AED500 million) in November 2023.
Knight Frank says Dubai’s status as a global hub has solidified through this property cycle, with HNWI increasingly establishing the emirate not merely as a part-time base for business or leisure, but as their full-time home.
The current market dynamics are primarily driven by genuine end-user activity, as individuals and families purchase properties for their own occupation. This fundamental change means Dubai’s real estate landscape is moving beyond its ‘emerging’ phase to become an ‘emerged’ market, characterised by greater stability.
“Historical patterns of sharp market cycles, largely fuelled by speculative investment, have receded and, while natural market cycles will persist, we believe the volatility associated with previous speculative booms is less likely in this new era of established residency. Indeed, as the market extends past its five-year property price rally, the rate of price rises across the mainstream market is starting to slow, albeit they continue to rise. After growing by 194 percent since Q4 2020, we believe prime values will expand by a further 3 percent during 2026,” Durrani concluded.
