What To Know
- Knight Frank has also pointed out that the percentage of homes that get sold off within the 12 months span after purchase has lowered to 4-5 percent in this current market compared to 25 percent in the year 2008 and this shows a maturing market.
- The city still remains a leader in sales in homes that cost 10 million or more dollars with almost the equal of the total racked up by the two cities, London and New York in 2024.
- The Prime Index of Knight Frank registered the average value of AED 3,850 per square foot in Q2, indicating the same level as in the previous quarter, but 18 percent compared to the previous year.
Luxury real estate market Dubai recorded the highest amount in quarter 2 of 2025 and sales of properties worth more than $10 million were valued at $2.6 billion, according to global consultancy Knight Frank. That is a 37 percent increase compared to Q1 of $ 1.9 billion and a 63 percent rise compared to Q2 of 2024.
There were 143 ultra-luxury homes sold in the period between April and June 2025, with 22 properties with over $25 million.
Palm Jumeirah recorded the highest transactions of luxuries by 28 followed by La Mer with 23 and the Downtown Dubai had 16. The Prime Index of Knight Frank registered the average value of AED 3,850 per square foot in Q2, indicating the same level as in the previous quarter, but 18 percent compared to the previous year.
Faisal Durrani, Knight Franks Head of Research MENA said, “These are record transactions and confirm the continued attractiveness of Dubai to world-wide high-end buyers. The city still remains a leader in sales in homes that cost 10 million or more dollars with almost the equal of the total racked up by the two cities, London and New York in 2024.”
According to data since 2020, the overall amount of houses sold in Dubai has increased by 282 percent with an intake of 170,000 new residents in 2024 whereas the supply of housing increased by 30, 000 units only. Among the 110,000 properties above 1 million dollar, 37000 have been acquired by the so called accidental millionaires; these people bought their properties whose value increased above one million dollar after acquisition.
Knight Frank has also pointed out that the percentage of homes that get sold off within the 12 months span after purchase has lowered to 4-5 percent in this current market compared to 25 percent in the year 2008 and this shows a maturing market.
This increased and minimal production presents new investment chances among developers and cash investors in the prosperity of the luxury real estate business in the UAE.
