Dubai’s real estate market showed remarkable growth throughout 2024, with total transaction values across all sectors reaching $207 billion, according to Knight Frank’s 2025 Destination Dubai report released this week.
The report highlights nearly 170,000 residential sales, generating $100 billion in revenue last year. Momentum continued into 2025, as home sales hit AED 100 billion by early March—the fastest pace recorded in Dubai’s history.
Most notably, Dubai maintained its position as the world’s busiest market for properties priced over $10 million. In 2024, it recorded 435 sales in this ultra-luxury segment, nearly matching the combined sales of London and New York.
Strong Investor Appetite from Global HNWIs
The first quarter of 2025 saw an additional 111 homes in the $10 million-plus category sold—marking the highest quarterly volume for this period on record.
Faisal Durrani, Partner and Head of Research for MENA at Knight Frank, noted, “The strongest demand comes from the wealthiest buyers, reflecting the success of Dubai’s government initiatives to attract global investors and residents.”
A recent survey of 387 high-net-worth individuals (HNWIs) from India, Saudi Arabia, the UK, and East Asia revealed $10.3 billion of private capital targeting Dubai’s residential sector. These buyers have an average net worth of $22 million.
Among these nationalities, Saudi investors showed the greatest interest in Dubai real estate (79%), followed by East Asian (68%) and UK investors (67%).
The survey also found branded homes and offices as popular sectors, with 49% and 47% of respondents respectively expressing strong interest.
Dubai was the preferred emirate for real estate purchases by 71% of respondents, led by Saudi buyers (80%), British (74%), Indian (69%), and East Asian (61%) nationals.
Will McKintosh, Regional Partner and Head of Residential, MENA, added, “Saudi, Indian, and British buyers made up over half of Knight Frank’s Dubai home sales in 2024, underlining the depth of international demand.”
Prime Neighbourhoods Drive Luxury Purchases
Among the top locations, Dubai Marina attracted 28% of HNWI interest, followed by Dubai Hills Estate (24%) and Emirates Hills (23%).
Shehzad Jamal, Partner for Strategy and Consultancy, MENA, commented, “The super-rich remain highly focused on luxury homes in Dubai. This strong demand has made Dubai the busiest global market for $10 million-plus properties for the second year running.”
For ultra-high-net-worth individuals—those with wealth exceeding $50 million—Dubai Marina was even more popular (43%), followed by Dubai Hills Estate (30%) and Emirates Hills (22%).
Market Values and Demand Continue to Climb
Dubai’s residential property prices rose by 19.1% in 2024, reaching an average of AED 1,685 per square foot—13.3% above the 2014 market peak.
In Q1 2025, prices climbed a further 3.7%, pushing values to 17.6% above the 2014 high. Villas led the growth with a 19.6% increase year-on-year, averaging AED 2,088 per square foot—a 107.6% rise since early 2020.
Knight Frank noted a shift in the market towards genuine end-users rather than speculators. Evidence includes a 48% drop in available homes priced over AED 50 million in 2024 compared to 2023.
Durrani added, “Our research shows 83% of global HNWIs are interested in buying land to build custom homes in Dubai, regardless of nationality. This highlights Dubai’s rapid maturation as a prime residential hub.”
Global Wealth Focuses on Dubai
The survey found that global HNWIs plan to spend an average of $32 million on Dubai properties.
Among buyers with wealth exceeding $50 million, 54% would consider homes priced above $80 million.
Saudi investors have the highest average budget of $45.7 million, followed by Indian buyers at $44.6 million, and British investors at $30 million. Also, the East Asian buyers reported the lowest average budget at $23 million.
The research was conducted with YouGov, surveying 387 HNWIs across the UK, India, Saudi Arabia, and East Asia (China, Hong Kong, Singapore), excluding their primary residences.
