Dubai’s luxury real estate market has established an unprecedented global benchmark, closing 2025 with a historic 500 residential transactions valued above $10 million each. This remarkable performance, documented by property consultancy Knight Frank, represents a significant 15% increase from the 435 ultra-luxury homes sold in 2024. The market’s most exclusive segment—properties exceeding $25 million—witnessed even more dramatic growth, with 68 transactions completed compared to 46 the previous year, marking a 45% year-on-year surge.
The fourth quarter of 2025 alone accounted for 143 premium property sales, generating a total transaction value of $9.05 billion annually. The market’s pinnacle transaction occurred in Business Bay’s Bugatti Residences by Binghatti, where a six-bedroom apartment commanded Dh550 million ($149.7 million).
Faisal Durrani, Knight Frank’s Partner and Head of Research for Mena, attributes this explosive growth to Dubai’s evolving reputation as a sanctuary for global elites. ‘The emirate’s transformation from just 30 premium sales in 2020 to 500 today demonstrates its powerful appeal among high-net-worth individuals worldwide,’ Durrani noted. This attraction stems from Dubai’s exceptional quality of life, superior infrastructure, and government-led investment initiatives.
Geographic distribution data reveals Palm Jumeirah as the preferred destination for luxury buyers, with 28 transactions in Q4 2025. Palm Jebel Ali followed with 22 sales, while La Mer (16), Jumeirah Second (13), and Tilal Al Ghaf (9) completed the top five locations.
Will McKintosh, Regional Partner and Head of Residential for Mena at Knight Frank, emphasized Dubai’s unique market positioning: ‘The creation of comprehensive destination communities that integrate leisure, safety, and convenience into self-contained ecosystems has differentiated Dubai from other global gateway cities, attracting unprecedented attention from the world’s wealthiest individuals.’
Supporting this luxury property boom, Dubai’s millionaire population has grown substantially, now hosting 86,000 millionaires, 251 centi-millionaires, and 23 billionaires according to mid-2025 data. World-class healthcare, education facilities, and unparalleled security continue to drive this demographic shift, cementing Dubai’s status as a premier global wealth hub.