Dubai’s Luxury Real Estate Surges in 2025
In Dubai’s glittering skyline, where Palm Jumeirah’s villas and Downtown Dubai’s penthouses define opulence, the luxury real estate market soared in 2025. The Julius Baer Global Wealth and Lifestyle Report 2025 reported a 27% increase in luxury property sales, fueled by a 102% rise in high-net-worth individuals (HNWIs) since 2020. With transactions above $10 million up 93.2% in the first five months, per Dubai Land Department data, Dubai’s tax-free policies and global connectivity have made it a magnet for the wealthy. Yet, rising costs for the city’s low-wage workers highlight persistent inequalities.
Dubai’s appeal draws global elites, with 9,800 millionaires projected to relocate to the UAE in 2025, per Henley & Partners, hosting 81,200 millionaires and 20 billionaires. Palm Jumeirah villas, priced up to $120 million, and Downtown Dubai penthouses, reaching $20 million, led with 590 sales above AED 20 million ($5.4 million) in Q1 2025. In May, sales hit $18.2 billion, up 44% year-on-year, with 3,105 deals above AED 10 million ($2.7 million), per Seven Luxury Real Estate. A square foot of prime property costs $1,020, compared to $2,732 in New York.
The emirate’s zero-tax environment and Golden Visa, offering 10-year residency for AED 2 million ($544,500) investments, attract buyers from India, the UK, and China. The Dubai Land Department recorded 94,000 residential sales in H1 2025, up 23.04%, valued at AED 326.7 billion ($88.9 billion). Off-plan properties, 69% of Q1 deals, rose 24%. Developments like Emaar Beachfront and Dubai Creek Harbour offer smart homes with blockchain-backed transactions.
Non-oil GDP, at 55% in 2024 per Deloitte, and 18.7 million tourists bolster demand. Dubai International Airport’s 92.3 million passengers in 2024, per Dubai Airports, enhance connectivity. However, Fitch Ratings predicts a 10-15% price correction in 2025 due to 41,000 new units. Among 3.7 million residents, 88% expatriates per the Dubai Statistics Center, low-wage workers face affordability issues. The city’s high carbon footprint, contrasts with its 75% clean energy goal by 2050.
Photo credits: Luxury Property. Villa in Palm Jumeirah.
Alexander Agafiev Macambira is former tech contributing writer for Forbes Monaco.
Alexander Agafiev Macambira
Vladyslava Garkusha
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