Dubai luxury property sales reached a record $2.6 billion in Q2 2025 for homes priced above $10 million, according to global consultancy Knight Frank. The figure represents a 37% increase from the $1.9 billion recorded in Q1 2025 and a 63% rise compared to Q2 2024, confirming the emirate's sustained dominance at the top end of the global residential market.
143 Ultra-Luxury Homes Sold in Three Months
A total of 143 ultra-luxury homes changed hands between April and June 2025, including 22 properties priced above $25 million. Palm Jumeirah led all locations with 28 transactions in the $10 million-plus segment, followed by La Mer with 23 and Downtown Dubai with 16.
Knight Frank's Prime Index recorded an average value of AED 3,850 per square foot in Q2 — broadly flat versus the previous quarter but 18% higher than a year earlier.
Dubai Rivals London and New York Combined
Faisal Durrani, Knight Frank's Head of Research MENA, said: "These are record transactions and confirm the continued attractiveness of Dubai to worldwide high-end buyers. The city still remains a leader in sales of homes that cost $10 million or more — with almost the equal of the total racked up by London and New York combined in 2024."
Dubai was the world's busiest market for $10 million-plus home sales in 2024, registering 435 such transactions across the full year.
A Maturing Market Backed by Population Growth
Since 2020, the total number of homes sold in Dubai has increased by 282%, driven in part by an influx of 170,000 new residents in 2024 alone. Supply, however, has not kept pace — only around 30,000 new units were added to the market in the same period.
Of the roughly 110,000 properties now valued above $1 million, approximately 37,000 were purchased at lower prices and have since appreciated beyond that threshold — buyers Knight Frank describes as "accidental millionaires."
The consultancy also noted that the share of homes resold within 12 months of purchase has dropped sharply, from around 25% in 2008 to just 4–5% today, a sign of a more stable, long-term investor base.
Investment Outlook
The combination of constrained supply and strong international demand continues to create compelling conditions for both developers and cash investors in Dubai's luxury real estate sector. Knight Frank expects appetite from global ultra-high-net-worth buyers to remain robust through the second half of 2025.
