Dubai’s premium property market witnessed remarkable growth in the third quarter of 2025, as buyer demand in the luxury segment surged. According to the latest data from global real estate consultancy Knight Frank, a total of 103 properties priced above $10 million were sold during the quarter representing a 24% increase compared to the same period last year.
The uptrend was primarily driven by heightened interest in ultra-luxury homes, with 17 transactions exceeding $25 million, more than double the figure recorded in Q3 2024.
Record-Breaking Surge in High-End Home Sales
Over the first nine months of 2025, Dubai recorded 357 transactions in the $10 million-plus category, a 26% jump from 282 deals during the corresponding period in 2024.
In terms of transaction value, growth outpaced volume. Sales within this high-end bracket exceeded $2 billion in Q3 2025, marking a robust 54% year-on-year increase. The average deal value also rose significantly to $19.4 million, up 23.8% from Q3 2024.
Dubai’s Position as a Global Luxury Hub
Commenting on the performance, Faisal Durrani, Partner and Head of Research, MENA at Knight Frank, noted:
“The acceleration in total transaction value outpacing deal numbers underscores the rapid appreciation of property prices in Dubai’s elite segment. The city has firmly established itself as a global safe haven for affluent investors and end-users. With the market already on track to surpass last year’s 435 transactions in the $10 million-plus range, 2025 is shaping up to be another record-setting year.”
The highest transaction of Q3 2025 was a $95.3 million sale for a seven-bedroom mansion in Asora Bay by Meraas, located within the prestigious La Mer community.
Lifestyle Appeal Fuels Buyer Interest
Will McKintosh, Regional Partner and Head of Residential, MENA at Knight Frank, emphasized that exclusivity and lifestyle amenities remain top priorities for high-net-worth individuals (HNWIs):
“Buyers are drawn to communities that combine wellness, beachfront living, and easy access to leisure and retail destinations. La Mer perfectly illustrates this demand with its focus on luxury lifestyle and world-class facilities, appealing to both local and international investors.”
Prime Residential Values Continue to Climb
Knight Frank’s Prime Index, tracking luxury prices across ten leading communities, reported an average of AED 3,767 per square foot in Q3 2025, up 8.5% year-on-year from AED 3,475 per square foot in Q3 2024.
Among the top-performing areas, Palm Jumeirah led the market, accounting for 34% of all prime residential transactions, followed by Jumeirah 2, which captured 17% of $10 million-plus sales.
HNWI Interest Highlights Market Potential
Knight Frank’s research also revealed that global HNWIs exploring property purchases in Dubai have average budgets of $32 million, with Saudi investors allocating as much as $45.7 million. Moreover, approximately 15% of buyers from Saudi Arabia, the UK, India, China, Hong Kong, and Singapore are willing to invest over $80 million in a single Dubai property this year, signaling untapped potential in the ultra-luxury housing segment.
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-property-market-records-strong-growth-in-ultra-prime-home-sales-in-q3-2025
