(MENAFN- Khaleej Times)

Dubai's prime residential market has witnessed an extraordinary transformation over the past five years, with property transactions priced at Dh10 million and above soaring tenfold. According to Savills' latest research, deals in this ultra-luxury segment jumped from just 469 in 2020 to nearly 6,000 by mid-November 2025 - a 24.4 per cent increase year-on-year, with weeks still left in the calendar.

This surge underscores Dubai's growing appeal among global high-net-worth individuals (HNWIs), driven by political stability, a tax-efficient environment, and world-class infrastructure. The emirate's ability to attract international talent and wealthy families has reshaped its real estate landscape, fueling demand for larger homes and premium developments.

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Savills' inaugural Wealth Trends Report puts Dubai as the top hotspot destination globally for high net worth individuals, with the Index scoring Dubai top of 100 destinations globally given its strength across business environment and wealth clustering, family infrastructure and cost, legacy, lifestyle, and privacy and security. The city is likely to continue to attract HNWIs, driving the upper end of Dubai's residential market.

Off-plan dominates the prime market

Off-plan sales have become the cornerstone of this growth, accounting for 73 per cent of all transactions above Dh10 million in 2025. Major project launches such as The Oasis, Palm Jebel Ali, Eden Hills, and Jumeirah Golf Estates Phase 2 have bolstered activity, signaling confidence in Dubai's long-term prospects.

The villa segment, in particular, has seen explosive growth. Off-plan villas now represent 51 per cent of all prime transactions, marking a staggering 915 per cent increase in volumes since 2021. Buyers are gravitating toward expansive layouts - over 4,000 sq. ft. - with the prime market comprising 81 per cent of such deals over the past five years. This trend reflects a preference for privacy, outdoor space, and wellness features among affluent purchasers.

Super-prime homes gain traction

While transactions in the Dh10–20 million bracket dominate, accounting for 64 per cent of deals, the super-prime category - homes priced above Dh20 million - has grown at an equal pace. Both segments recorded a 24 per cent year-on-year increase, underscoring robust demand at the very top end of the market.

Where the big deals are happening

The Oasis leads villa transactions over Dh10 million with 1,024 deals, followed by Palm Jebel Ali (567) and District One (169). For apartments, Dubai Harbour tops the list with 250 transactions, while Palm Jumeirah and Downtown Dubai remain strongholds for luxury living.

Despite apartments dominating the sub-Dh10 million market, villas account for 70 per cent of prime transactions. Apartments in this segment command higher prices per square foot - averaging Dh5,400 - compared to Dh2,600 for villas. Waterfront locations and branded residences, often linked to luxury hospitality or lifestyle brands such as Missoni and Mercedes-Benz, are key differentiators for high-end apartments. Dubai now ranks as the world's most active city for branded residences, with 64 completed projects and 87 more in the pipeline.

Who's buying?

European buyers lead the charge in Dubai's prime market, representing 58 per cent of Savills' transactions above Dh10 million in 2025, followed by Asian investors at 23 per cent. In total, buyers from 33 nationalities participated in this segment, highlighting Dubai's global magnetism.

Outlook

Looking ahead, Dubai's luxury real estate market shows no signs of slowing. Continued wealth migration, population growth, and the appeal of branded residences will sustain momentum. Villas are likely to remain the preferred choice for ultra-luxury buyers, while new off-plan launches will cater to evolving tastes for space and exclusivity.

As global economic dynamics and geopolitical factors influence investment decisions, Dubai's position as a safe, vibrant hub ensures its prime and super-prime markets will remain resilient - and highly sought after.

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