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
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