The luxury real estate landscape in Dubai is shifting remarkably. Once the pinnacle of opulence, Palm Jumeirah has been supplanted by Palm Jebel Ali as the top destination for ultra-luxury homes priced above AED 20 million, according to a recent industry study. This transformation highlights changing preferences among high-net-worth individuals and the evolving nature of luxury living in the emirate.

Market Dynamics of Palm Jebel Ali

A comprehensive analysis by Penthouse, a prominent UAE property developer, reveals that Palm Jebel Ali captured 21% of all ultra-luxury property transactions exceeding AED 20 million in Dubai during 2025. The overall market saw 2,489 residential transactions, with a significant portion—64%—being off-plan properties, indicating a strong demand for upcoming developments. The area notably recorded 517 sales, yielding a staggering AED 12.4 billion in total sales value, more than any other location in the city.

Comparative Performance of Key Areas

Following Palm Jebel Ali, Oasis emerged as the second-most popular location for ultra-luxury homes, accounting for 12% of such transactions with 307 deals. Palm Jumeirah, historically revered for its extravagant offerings, hovered in third place, recording 273 transactions. The report emphasized that while Palm Jebel Ali and Oasis thrived on off-plan sales, Palm Jumeirah still led the way in providing fully ready ultra-luxury properties, showcasing its enduring appeal.

Shifting Tastes Among Ultra-High-Net-Worth Individuals

High-net-worth clients are increasingly attracted to expansive waterfront developments, as demonstrated by the successes of Palm Jebel Ali and The Oasis. Marcus Andersson, Head of Luxury Sales at Penthouse.ae, remarked on the dual market dynamics: established locations like Palm Jumeirah still see robust demand for high-quality, ready-to-move-in homes, while new projects attract buyers looking for future potential. This trend indicates that luxury buyers are diversifying their interests, seeking larger, more innovative living spaces.

Luxury Transactions in Other Prominent Areas

Beyond the main contenders, several other locations showcased significant ultra-luxury property transactions in 2025. Dubai Hills Estate, Mohammed Bin Rashid City, Jumeirah, and Downtown Dubai all reported notable sales during the year. Particularly striking was the record transaction in Business Bay, where a sky mansion at Bugatti Residences sold for an astonishing AED 550 million, setting a new benchmark for high-value real estate in Dubai.

The study concludes that while new developments at Palm Jebel Ali and The Oasis mark a fresh chapter for luxury living in Dubai, established locales like Palm Jumeirah, Emirates Hills, and Dubai Hills Estate will continue to thrive as premier markets. The combination of emerging opportunities and the enduring allure of traditional hotspots paints a vibrant picture for the future of luxury real estate in the UAE.

This evolution underscores the importance of adaptability in the luxury property sector, where both innovative projects and timeless destinations coalesce to cater to the diverse needs of affluent buyers.