Dubai luxury home sales soar 24% to record $2 billion, Knight Frank says

Dubai: Dubai’s ultra-high-end home market is breaking records, despite premium prices and tight supply, according to the latest data from Knight Frank.

In the third quarter of 2025, 103 properties sold for more than $10 million, up 24% increase over Q3 2024. Among those, 17 transactions exceeded $25 million, more than double the count from the same quarter last year. In the first nine months of 2025, the number of deals in the $10 million-plus bracket rose to 357, up from 282 in the comparable period in 2024, a 26% increase.

More striking was the jump in value. Total sales of properties above $10 million in Q3 crossed $ 2 billion, a year-on-year rise of 54%. With big-ticket deals dominating, the average value per transaction in this segment climbed to $19.4 million, a 23.8% increase from the same quarter a year earlier.

“The fact that the growth in total transaction values for $10 million homes is rising faster that the number of deals is a stark indication of how fast prices are rising in this exclusive segment of the market," said Faisal Durrani, Partner and Head of Research, MENA. "Dubai’s luxury market has cemented its status as a safe haven for international and local buyers."

On pricing in prime areas, Knight Frank’s Prime Index across ten luxury communities averaged Dh3,767 per square foot in Q3, up from Dh3,475 psf a year earlier, an 8.5% rise. Palm Jumeirah led in transaction volume, accounting for 34% of ultra-luxury sales, followed by Jumeirah 2 with 17%.

Durrani also highlighted rising buyer budgets and shifting demand. “Our analysis shows global HNWI budgets considering a home purchase in Dubai stand at $32 million, topping out at $45.7 million for Saudi nationals. Overall, 15% of HNWI from Saudi, the UK, India, China, Hong Kong and Singapore are prepared to spend upwards of $80 million on a home in the city this year, and there remains a clear gap in the market of uber-luxury housing.”

The strong surge in ultra-luxury transactions tracks broader momentum. Earlier in 2025, Dubai led the global market in $10 million-plus home sales. In Q2 alone, ultra-luxury sales hit $ 2.6 billion.

Looking ahead, analysts say that while price growth may moderate, fundamentals remain supportive: restricted prime supply, rising global wealth, tax advantages and strategic incentives in Dubai are expected to continue driving demand at the top end.