Sales of homes priced above $10 million in Dubai hit an all-time high of $2.6 billion in the second quarter of 2025, according to research from global property consultancy Knight Frank.
The figure represents a 37 per cent increase from the $1.9 billion recorded in Q1 2025 and a 63 per cent rise compared to Q2 2024.
The total number of $10 million+ sales during Q2 reached 143 transactions – a 52 per cent increase on Q2 2024 – including 22 deals worth more than $25 million.
Palm Jumeirah leads Dubai’s record-breaking luxury property market
For the first time since Q2 2023, apartments outpaced villas in the $10 million+ segment, with 80 apartment sales compared to 63 villas.
The Palm Jumeirah led locations for $10 million+ sales with 28 properties changing hands, while La Mer recorded 23 transactions and Downtown Dubai saw 16 deals.
Knight Frank’s Prime Index for Dubai, which tracks values across 10 key luxury communities, averaged AED 3,850 per square foot in Q2 – 18 per cent higher than Q2 2024 (AED 3,272 per square foot) yet virtually unchanged from Q1 2025.
“The record sales in the luxury price bracket are in line with the findings of our latest Destination Dubai report, which highlights the sustained and rising demand among global and domestic high-net-worth individuals for homes in the emirate,” said Faisal Durrani, Partner – Head of Research, MENA.
“The total value of all homes sold in Dubai has increased by 282 per cent since 2020, and in 2024 it was once again the world’s busiest market for $10 million+ homes, recording 435 sales in this exclusive price bracket and almost equalling the number of $10 million+ home sales in London and New York combined.”
Dubai property millionaires increase 79.5% as accidental wealth surges
Dubai retained this position during Q1 2025. Durrani noted that the city’s residential market continues to mature, with the number of homes being sold within 12 months of purchase declining from around 25 per cent in 2008 to 4-5 per cent today.
Knight Frank’s research revealed 110,000 residential units valued above $1 million at the start of Q2 2025, representing 17.7 per cent of the total 624,000 homes sold in the city since 2002. The combined value of these properties is estimated at AED 994 billion, or $271 billion.
About 19 per cent of these $1 million homes (21,000 units) are rented, while 37,000 are owned by “accidental millionaires” – purchasers who bought properties for less than US$1 million that are now worth more due to price inflation.
The rising popularity of Dubai as a residential destination is creating opportunities for investors and developers targeting supply gaps.
The city welcomed almost 170,000 new residents last year, while total housing stock rose by just over 30,000 units.
“The number of accidental millionaires in Dubai has increased by an average of 79.5 per cent over the past three years. This suggests most homes are being held as primary residences, second homes, or long-term investments for capital gains, reflecting strong confidence in Dubai’s residential market among the wealthy. This also mirrors our own market experience where we have found the strongest level of demand for purchasing a home as a primary end user is amongst ultra-high-net-worth individuals,” Shehzad Jamal, Partner – Strategy & Consultancy, MENA said.
Durrani added that there appears to be some rebalancing this year, with the mainstream end of the market registering sharper falls in homes available to purchase.
Knight Frank’s Prime Index for Dubai includes the Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Jumeirah Islands, La Mer, District 1, Al Barari, Tilal Al Ghaf, Dubai Hills Estate and Jumeirah Golf Estates.
