Dubai has reaffirmed its leading position on the global luxury real estate map, topping the market for homes valued at over ten million dollars once again in the second quarter of 2025, according to a report by global real estate consultancy, Knight Frank.
The report indicates that demand for luxury properties has remained strong despite international economic challenges, with the number of transactions increasing by 19% year-on-year to reach 590 deals in the second quarter of this year, compared to 497 deals in the corresponding period last year.
Moreover, the total sales value surged by an impressive 33%, amounting to 11.8 billion dollars, up from 8.9 billion dollars in the same timeframe of 2024. This growth reflects the ongoing appetite of global investors for premium real estate in key cities.
According to the report, Dubai continues to dominate the ultra-luxury real estate market globally, surpassing cities like New York, London, and Hong Kong in the number of completed transactions. This robust performance is attributed to a stable economic environment, flexible investment policies, advanced infrastructure, and a modern lifestyle that has made the emirate a favored destination for the affluent and entrepreneurs worldwide.
The allure of the local real estate market has further solidified Dubai’s reputation as a safe haven for international capital amid global market upheaval. Investors find in the emirate a stable sanctuary that offers long-term returns within a supportive regulatory environment.
Liam Bailey, Global Head of Research at Knight Frank, stated that Dubai’s performance showcases the maturity of its real estate market and its ability to sustainably attract international capital, asserting that the emirate has established itself as the leading global market for ultra-luxury properties despite market fluctuations.
The report also highlighted that New York regained the top position in total transaction value, driven by a resurgence in the Manhattan market, while Los Angeles recorded its strongest quarterly performance since 2021 thanks to robust sales in Beverly Hills and Malibu. Meanwhile, Hong Kong is gradually recovering in terms of both transaction numbers and values, despite ongoing political and economic challenges.
Attraction Factors
Industry experts believe that Dubai’s success can be attributed to a range of factors including government incentives, high levels of security, enjoyable weather year-round, and long-term residency programs designed to attract wealthy individuals and digital entrepreneurs.
Knight Frank revealed that Dubai accounted for around 20% of global ultra-luxury property sales in 2024, with record transactions occurring in areas such as Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, and Dubai Hills Estate, with some properties exceeding 100 million dollars.
The report anticipates continued momentum throughout the second half of 2025, given the limited supply of luxury properties and an increasing influx of capital from Europe, Asia, and the Middle East. This is expected to encourage developers to launch new residential projects featuring global brands targeting an elite clientele in search of privacy and comprehensive services.
As wealth creation accelerates and confidence in global markets returns, Dubai remains poised to strengthen its role as the energetic center of the global luxury real estate market and a prime destination for high-value capital flows and investments.