Dubai Luxury Real Estate sector is expected to sustain its strong upward momentum in 2025, driven by persistent demand, constrained supply, and an ongoing influx of high-net-worth individuals (HNWIs), according to a recent market analysis.
Over the past decade, transactions involving premium villas and apartments priced above AED 15 million have surged significantly. By 2024, total sales in this segment reached AED 71 billion for the second consecutive year—an impressive 688% increase compared to 2015.
Despite more than 326,000 properties currently under construction across Dubai, a new report highlights the scarcity of luxury and ultra-luxury residences expected to enter the market within the next two to three years. This constrained availability, coupled with heightened interest from buyers and investors, is anticipated to drive price appreciation in 2025.
The latest data indicates that only 16,500 units under development fall within the luxury or ultra-luxury categories, distributed as follows:
- AED 5-10 million: 10,209 units
- AED 10-15 million: 2,360 units
- AED 15-30 million: 2,831 units
- AED 30-60 million: 809 units
- Above AED 60 million: 330 units
Notably, a substantial portion of these projects remains in the early stages, with 72% still within the 0-20% construction progress range.
Exclusive Market with Sustained Demand
The data underscores the exclusivity of Dubai’s ultra-luxury real estate sector, where limited availability continues to drive competition. Demand is projected to remain strong for at least the next two to three years, with market equilibrium dependent on the reception of upcoming developments. If the expected annual influx of approximately 6,500 HNWIs continues between 2024 and 2026, the sector is likely to experience sustained demand, reinforcing steady price growth.
Source: https://www.zawya.com/en/business/real-estate/dubais-ultra-luxury-real-estate-market-set-for-more-growth-in-2025-wfmfgiol
