UAE Luxury Property Market Set For Sustained Boom As Global Wealth Flows In

(MENAFN- Khaleej Times)

The UAE's luxury residential real estate market is on a strong upward trajectory, with projections indicating expansion from $45.11 billion in 2025 to $70.91 billion by 2030.

The sector's momentum was clear in the past two years, when high-end property sales in Dubai and Abu Dhabi surpassed pre-pandemic levels, buoyed by rising transaction volumes, record prices and continued demand from international high-net-worth buyers.

Recommended For You UAE weather: Light rains expected; low of 16oC in Dubai Saudi Arabia sentences 3 to death for joining terrorist group, making explosives

Luxury housing in the UAE has moved beyond a post-pandemic rebound to become a vibrant, long-term investment segment. Political stability, investor-friendly regulations, and world-class infrastructure have sustained confidence, while lifestyle-driven development has redefined premium real estate as both a living choice and a strategic asset. Waterfront living, branded residences and integrated communities now dominate the top tiers of the market.

According to Mordor Intelligence, the UAE luxury residential market was valued at $45.11 billion in 2025 and is forecast to expand steadily through 2030. Market observers say 2023 marked a pivotal turning point, with strong absorption in ultra-luxury villas, beachfront apartments and branded homes despite global economic uncertainty. Prime locations in Dubai and Abu Dhabi recorded consistent demand, particularly from buyers seeking stability and long-term value.

A major driver of this growth has been the expansion of master-planned luxury communities developed by some of the region's most influential real estate players. Emaar Properties has continued to set benchmarks with flagship projects such as Dubai Creek Harbour's The Address Residences, a waterside development offering panoramic skyline views, and Marasi Bay's ultra-luxury waterfront homes, which combine resort-style amenities with private marina access.

Another standout is Emaar's Bulgari Residences Dubai, a branded address that blends Italian design with world-class hospitality.

Sobha Realty has also strengthened its presence in the luxury segment with Sobha Hartland, a signature community in Mohammed bin Rashid Al Maktoum City that features bespoke villas and mansions surrounded by parklands and waterfront promenades.

According to PNC Menon, founder chairman of Sobha Realty, the developer's emphasis on passion for details, superior craftsmanship and quality has made these homes particularly attractive to families and long-term residents looking for exclusivity and space in a prime urban setting.

Other key developers continue to shape the landscape. Nakheel is synonymous with beachfront and island-based luxury communities such as The Palm Jumeirah's Shoreline Villas, while Damac Properties remains a major force through branded luxury residences including Damac Lagoons' themed villas and premium apartments. In Abu Dhabi, Aldar Properties is transforming the market with integrated developments like Al Raha Beach Residences and Saadiyat Grove, which combine luxury living with cultural and leisure attractions.

International demand remains instrumental to the market's strength. Buyers from Europe, South Asia, Russia, China, and the wider Middle East continue to view the UAE as a safe and attractive destination for wealth preservation and lifestyle living. Long-term residency initiatives, including golden visas, have further solidified this appeal, encouraging investors to make the UAE their home.

According to CBRE, foreign buyers accounted for a significant share of high-value residential transactions in Dubai by 2023, highlighting its global appeal.

Buyer preferences within the luxury segment are also shifting, with sustainability, wellness and smart-home technologies now core expectations. Developers have responded accordingly. Emaar and Sobha have integrated energy-efficient design, smart automation and wellness-oriented features into their premium projects. Knight Frank notes that properties with strong sustainability credentials are commanding pricing premiums and experiencing faster sales cycles in key areas.

Looking ahead to 2026, market sentiment remains positive. With limited supply in top-tier locations and a growing base of affluent residents, price stability and selective appreciation are expected to continue.“The UAE has evolved into a structurally attractive luxury residential market,” said Faisal Durrani, partner and head of Research for Mena at Knight Frank.“Wealth migration and lifestyle-driven development will continue to underpin demand across prime and super-prime segments.”

Dubai Holding's diversified real estate portfolio, blending residential, hospitality and mixed-use developments, further strengthens the UAE's luxury market. Together with established developers, it reinforces the Emirates' position as a global luxury living destination.

Industry experts, including Vidhyadaran Sivaprasad, chairman of Condor Developers, believe the sector is entering a more mature phase, marked by discerning buyers and higher expectations.“Premium home buyers today are focussed on quality of life, privacy and long-term value, creating a more balanced and resilient market” said Sivaprasad.

With strong economic fundamentals, supportive government initiatives and sustained global interest, the UAE luxury residential real estate market is well placed for continued growth through 2026 and beyond, reinforcing the country's appeal as one of the world's most compelling destinations for luxury living and investment.

MENAFN07012026000049011007ID1110569272