Dubai’s Prime Residential Market Shows Unstoppable Growth
Dubai’s real estate sector continues its upward trajectory. The city’s strong economy, favourable business environment, tax-free policies, and stable governance are key drivers behind this sustained momentum.
A notable trend is the shift from renting to homeownership among expatriates, increasing demand for larger units and premium developments with modern amenities. This shift has particularly boosted transactions exceeding AED 10 million. While most sales in Dubai – 93% remain under AED 5 million, the high-end segment has surged dramatically, rising tenfold from 469 transactions in 2020 to 4,670 in 2024. The first quarter of 2025 alone recorded over 1,300 sales above AED 10 million, a 31% year-on-year increase.
Luxury villas and branded residences are at the heart of this growth. Off-plan transactions now account for 69% of AED 10M+ sales, reflecting rising confidence in future stock. In the villa segment, developments such as Palm Jebel Ali, District One West, and The Acres lead in transaction volumes. Among apartments, hotspots include Dubai Harbour, Palm Jumeirah, and Downtown Dubai.
Jumeirah Islands highlights the luxury villa boom, with 89 homes sold above AED 10 million in 2024, compared to zero prior to 2021. The area also sees an increasing number of properties surpassing AED 20 million, driven by high-quality renovations. Overall, villas dominate the AED 10M+ market, making up 70% of transactions, while waterfront apartments, averaging AED 5,400 per square foot, maintain strong demand, especially in branded and lifestyle-focused projects.
Looking ahead, Dubai is set to remain the region’s hub for luxury living. The city is projected to deliver 40% of all branded residences in the Middle East and Africa by 2031. Savills forecasts an 8–10% growth for the prime segment in 2025, fueled by wealth migration, lifestyle-led developments, and new masterplan communities. Upcoming projects like the Jebel Ali Racecourse, Jumeirah Golf Estates Phase 2, and Emaar’s Grand Polo Club and Resort are expected to further strengthen Dubai’s luxury residential market.
