Notable rise in luxury home sales exceeding $10 million during the first quarter, fueled by an influx of affluent buyers
Dubai recorded 111 transactions worth more than $10 million in the first quarter of 2025, demonstrating the continued high demand for luxury real estate in the emirate due to the rising number of ultra-wealthy people.
Knight Frank stated in a report on Tuesday that it represents the “highest Q1 result on record” and an 5.7% increase of total value which sums up to $1.9 billion. The most popular location for purchases of worth more than $10 million is Palm Jumeirah, with 34 deals totaling to $562.8 million in the first quarter and Emirates Hills came at the second spot , 15 sales deals worth up to $356.7 million.
The most costly transaction of the quarter also occurred in Emirates Hills, a six-bedroom villa that was first purchased for $6.6 million in 2015 and sold for $106.3 million in January.
In the first quarter, Dubai also had 12 transactions involving residences worth above $25 million. According to Knight Frank, these transactions “reflect continued interest from global ultra high net worth individuals further seeking unique trophy homes.”
The luxury real estate market in Dubai is still defying gravity. Demand is still unmatched globally, especially from foreign purchasers, according to Faisal Durrani, partner and head of research at Knight Frank’s MENA division. The emirate has “firmly established itself as the hot spot for global ultra-luxury real estate.”, overtaking traditional markets like New York, London and Hong Kong,
Dubai led the global market last year in both the volume and value of house sales of over $10 million or more, with 435 transactions of such houses, taking the total worth of all deals to $7.1 billion.
The surge in high-net-worth individuals has been helping Dubai’s real estate market, which has benefited from government programs like the 10-year golden visa program, residency permits for remote workers and retirees and general economic growth in the UAE due to diversification efforts.
According to Knight Frank, which cited data from Henley & Partners, the United Arab Emirates received 7,200 millionaires last year, adding to an influx of 4,700 in 2023 and 5,200 in 2022. At the end of December, there were 130,500 millionaires (dollar currency) in the United Arab Emirates, making it the 14th largest wealth market in the world.
Over the last ten years, the UAE has seen a 98% increase in the number of dollar millionaires, making it the second-fastest-growing wealth market globally. According to Knight Frank, India accounts for the largest share of inbound millionaires, followed by the Middle East, Russia, Commonwealth of Independent States (CIS), United Kingdom and Europe.
Knight Frank stated that the expansion of family offices is supporting the real estate market along with the rise of UHNWI in the area. According to the survey, the desire to buy real estate in Dubai “grew exponentially with levels of personal wealth,” going from 28% of people with $2–$5 million to 78% of people with over $15 million.
Twenty-five percent of UHNWI who are thinking about buying a home in Dubai are willing to spend between $60 million and $80 million, while sixteen percent are open to contemplating properties that cost more than $80 million. “This level of demand is unsurprisingly putting pressure on supply,” it stated.
In the first quarter, the number of new residences delivered plummeted by 57% year over year in the AED 2,000 to 3,000 per square foot area, which includes many prime and high-end properties. The AED 3,000 to 5,000 per square foot market showed a similar trend, with a 39% decrease in supply.
However, the ultra-luxury market showed a noticeable deficit. Almost no new villas in the AED 5,000+ per square foot category were delivered in 2023. Knight Frank stated that the limited number of villas available at this price point in 2024 “underscored the scarcity of Dubai’s most exclusive residential offerings.”
From Henry Wiltshire International Perspective
Dubai’s luxury real estate market experienced impressive growth in Q1, with sales of homes over $10 million surging, driven by affluent buyers. Similarly, Henry Wiltshire International has observed parallel growth in Abu Dhabi’s high-end property market. Exclusive developments and individual villas on Saadiyat Island in particular have seen rising interest at these price levels due to their beachfront or golf course positions with privacy and exclusivity as key factors. This trend underscores Abu Dhabi’s appeal as a stable and attractive destination for wealthy buyers, many relocating from Europe and other parts of the world. There is huge growth in the amount of firms setting up in ADGM with hedge funds, investment banks and family offices choosing Abu Dhabi to open a regional office. As trusted experts, Henry Wiltshire International is delighted to be part of this momentum, offering knowledgeable service with discretion and catering to the evolving needs of luxury homebuyers in the UAE’s thriving property market.
Henry Wiltshire International is a boutique and muti-award winning brokerage located in Abu Dhabi, recently celebrating its 10 year presence in the region. As we speak on the with expertise in luxury and premium properties which includes villas, townhouses and apartments. To buy, lease or list your property with us, reach out today at +971 56 484 3380
