According to Knight Frank’s 2025 Destination Dubai study, Dubai’s real estate market has grown steadily throughout 2024, with transaction values across all sectors reaching $207 billion.
Based on the research, residential sales of approximately 170,000 units totaled $100 billion in 2024, with momentum continuing into 2025, as home sales reached AED 100 billion by March 4 – the quickest pace on record.
For the second year in a row, Dubai remained the world’s busiest market for homes priced above $10 million, with 435 sales in this category in 2024, nearly surpassing London and New York’s combined totals.
Dubai tops investor preferences
During the first quarter of 2025, an additional 111 properties in this price range sold, the largest total for any January-March period.
“As we have found in our research in previous years and mirroring the experience of our teams, the strongest appetite for a real estate purchase in the UAE comes from those with the greatest wealth and is a testament to the success of the government’s programmes to strengthen the emirate’s appeal as a place for the world’s wealthy to live and invest,” Faisal Durrani, Partner – Head of Research, MENA said.
Knight Frank’s survey of 387 high-net-worth individuals (HNWIs) from India, Saudi Arabia, the United Kingdom, and East Asia, with an average net worth of $22 million, revealed that $10.3 billion in private capital is targeting Dubai’s residential market.
The UAE’s residential sector is the primary target for Saudi HNWIs (79%), followed by East Asian HNWIs (68%) and UK investors (67%).
Branded residences came in second at 49%, with the office market (47%) rounding out the top three.
71% of respondents chose Dubai as their preferred emirate for real estate purchasing, with Saudi HNWIs leading the way (80%), followed by British (74%), Indian (69%), and East Asian (61%).
“The depth of demand from these nationalities is also reflective of our own market experience. Indeed, during 2024, Saudi, Indian and British nationals accounted for just over 50 per cent of homes sold by Knight Frank in Dubai,” Will McKintosh, Regional Partner – Head of Residential, MENA said.
Top luxury neighborhoods revealed
Dubai Marina was regarded as the top target neighbourhood for home acquisitions among HNWIs (28%), with Dubai Hills Estate (24%), and Emirates Hills (23%), ranking second and third, respectively.
“The super-rich remain laser-focused on purchasing luxury homes in the city, and this unrelenting demand has been a critical driver of Dubai being the world’s busiest $10 million+ homes market for the second year running,” Shehzad Jamal, Partner for Strategy & Consultancy in MENA added.
For ultra-high-net-worth individuals with personal fortune over $50 million, Dubai Marina (43%) is the most appealing, followed by Dubai Hills Estate (30%) and Emirates Hills (22%).
Dubai property market soars
Residential property values in Dubai rose by 19.1 percent in 2024, to an average of AED 1,685 per square foot, 13.3 percent more than the 2014 peak.
The market continued to strengthen in 2025, with prices rising by 3.7% in Q1, bringing values to 17.6% above the 2014 peak.
Villa prices increased by 19.6 percent in the 12 months to the end of Q1 2025, reaching AED 2,088 per square foot, marking a 107.6 percent rise over Q1 2020.
Knight Frank notes a change in the current property cycle toward true end users rather than speculators, as shown by lower inventory levels throughout the city. In the AED 50 million+ class, available residences declined by 48% in 2024 compared to 2023.
Durrani added: “While we have anecdotal evidence of end-users being the most active buyer group in the market, our research has revealed a number of other key tell-tale signs. For instance, we have also found that 83 per cent of global HNWIs are interested in purchasing land in Dubai to build their own home. This appetite is high almost irrespective of nationality. Dubai has matured quickly throughout this property cycle and this is clearly evidenced by the desire of potential global HNWI home buyers to settle in the city.”
Global wealth flocks to Dubai
The poll revealed that worldwide HNWIs are willing to spend an average of $32 million on Dubai residences.
Among individuals with personal worth over $50 million, 54% would consider purchases over $80 million.
Saudi investors had the largest average budget of $45.7 million, followed by Indian buyers ($44.6 million) and British investors ($30 million). East Asian HNWIs had the lowest average budget, $23 million.
The study was done in collaboration with YouGov, involving 387 HNWIs from the UK, India, Saudi Arabia, and East Asia (China, Hong Kong, Singapore) with an average net worth of $22 million, excluding their primary residence.
