Dubai’s luxury real estate sector continues to captivate the world’s affluent, showcasing remarkable resilience and growth. In 2025, the city’s high-end property market saw a record-breaking year, with nearly 2,500 homes sold for over AED 20 million. This surge emphasizes Dubai’s magnetic appeal for ultra-high-net-worth individuals (UHNWIs) globally.

Market Dynamics and Performance Highlights

According to Property Monitor, a significant 64% of these sales involved off-plan properties, illustrating heightened buyer confidence in upcoming luxury developments. Conversely, ready-to-occupy homes represented 36% of the market transactions. These statistics signal an optimistic outlook, prompting buyers to invest in the next wave of prime real estate offerings in Dubai.

Among the various neighborhoods, Palm Jebel Ali stood out as the most desirable ultra-luxury area in 2025, accounting for 21% of all transactions that exceeded AED 20 million. The area recorded 517 sales, culminating in AED 12.4 billion in total sales value. Remarkably, an agent from Penthouse.ae managed to close sales of five villas totaling over AED 143 million, highlighting the strong demand for elite residences. Palm Jebel Ali’s rising status as a preferred waterfront locale emphasizes its allure for those seeking luxury, privacy, and potential long-term investment growth.

Key Regions and Buyer Preferences

The Oasis followed, capturing 12% of the ultra-luxury market with 307 transactions, while the iconic Palm Jumeirah retained its prestige with 273 transactions. Although the latter remains a prime choice for those looking for established, ready homes, the appeal of new, off-plan developments like Palm Jebel Ali and The Oasis is on the rise. This shift in buyer preference is indicative of a transforming landscape where new luxury addresses gain traction.

Marcus Andersson, the Head of Luxury Sales at Penthouse.ae, noted a significant evolution in buyer preferences. “Dubai’s ultra-luxury market is maturing,” he stated. “We’re witnessing not only an increase in transaction volume but also a noteworthy evolution in what buyers are seeking. Large-scale waterfront developments are becoming increasingly popular, while traditional hotspots like Palm Jumeirah still draw strong interest for premium, ready-to-move-in homes.” This diversification is a positive indication of the long-term stability of the market.

Future Outlook and Emerging Trends

Looking ahead to 2026, the outlook remains promising for Dubai’s high-end residential sector. With record activity in 2025, projections suggest that ultra-luxury sales and rents could experience a growth of 10–20% year-over-year. The constraints in the supply of ultra-prime villas and beachfront properties, coupled with a consistent influx of new UHNW residents, are expected to fuel continued high performance at the top tier of the market.

Renowned locations like Palm Jumeirah, Emirates Hills, and Dubai Hills Estate will likely maintain their core status, while burgeoning areas such as Palm Jebel Ali and The Oasis are positioning themselves for growth as the city expands. Additionally, a shift towards more selective buying behavior is becoming apparent, particularly in the ultra-luxury rental segment, where fully upgraded, turnkey homes are commanding higher prices.

In conclusion, Mr. Andersson emphasized that the influx of UHNWIs into Dubai shows no signs of waning. Given ongoing global uncertainties, wealthy individuals are increasingly drawn to stable and business-friendly environments. The city’s advantageous tax structure, luxurious lifestyle offerings, and growing inventory of ultra-prime residences solidify its standing as one of the most appealing destinations for the ultra-affluent, ensuring robust demand well into the future.