The Middle East is witnessing an extraordinary rise in high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs), with the United Arab Emirates emerging as a leading global center for affluent investors.
The latest Private Capital Report from Knight Frank, a prominent global property consultancy, reveals that the number of dollar millionaires in the UAE has increased by nearly 98 percent over the past ten years. This surge has led to a notable rise in high-value property transactions, establishing Dubai as a major hub for luxury real estate on the global stage.
The report indicates that by December 2024, the UAE is home to roughly 130,500 dollar millionaires, making it the 14th largest wealth market in the world. This swift growth is driven by strategic economic reforms, visionary national initiatives, and a stable political climate, all of which continue to attract global investors. In particular, the arrival of new millionaires has surged in recent years, with 7,200 additional dollar millionaires relocating to the UAE in 2024 — a notable increase from 4,700 in 2023 and 5,200 in 2022. Research from Henley & Partners shows that these newcomers are enticed by the nation’s favorable tax policies, luxurious lifestyle, and forward-thinking governance.
The majority of incoming millionaires hail from India (31 percent), followed by the Middle East (20 percent), Russia and the Commonwealth of Independent States (CIS) (14 percent), and the United Kingdom and Europe (12 percent). This diversity in origins highlights the UAE’s status as a global hub for wealth migration, especially as political and economic uncertainties drive high-net-worth individuals to seek more secure environments for their assets.
The booming influx of wealth is prominently reflected in Dubai’s residential real estate market. The city has outpaced traditional luxury markets like London and New York in the ultra-luxury segment, particularly in the sale of homes valued at $10 million or more. Last year, Dubai recorded 435 such transactions, slightly surpassing the 434 transactions in 2023, with the fourth quarter of 2024 alone seeing 153 sales — establishing a new record for quarterly high-value transactions.
In the first quarter of 2025, the upward trend persisted, with 111 homes sold for over $10 million, marking the highest Q1 figures ever recorded. This represents a 5.7 percent increase compared to the same period last year, signaling that Dubai’s luxury property sector is poised for another record year.
Faisal Durrani, a partner and head of Research for Mena at Knight Frank, commented, “Dubai’s luxury residential market continues to defy expectations. International interest remains exceptionally high, as the city solidifies its position as the premier global destination for ultra-luxury real estate.”
The Palm Jumeirah remains the most sought-after ultra-prime location in Dubai, accounting for 34 transactions totaling $562.8 million during Q1 2025. Emirates Hills follows, with 15 sales amounting to $356.7 million. Notably, this community recorded the most expensive sale of the quarter — a six-bedroom villa sold for $106.3 million in January, originally acquired for just $6.6 million in 2015. This represents an astonishing appreciation of 1,635 percent, averaging nearly 34.6 percent annual growth.
The high-end segment of Dubai’s luxury market continues to allure global UHNWIs. In Q1 2025, twelve transactions exceeded $25 million, just shy of the 15 deals recorded in the previous quarter. These figures highlight a sustained demand for unique luxury homes, keeping appetite high even in the face of limited supply.
Demand significantly surpasses supply, particularly in the ultra-luxury category. The number of new villas launched at the highest price points has diminished sharply. In 2023, there were virtually no new villas introduced in the Dh5,000-plus psf category, and only 16 have come to market at this level in 2024. Additionally, supply in the Dh2,000-3,000 psf range, which encompasses many prime properties, dropped by 57 percent year-on-year, while the Dh3,000-5,000 psf segment declined by 39 percent.
Nicholas Spencer, a partner at Knight Frank, noted, “Dubai has firmly established itself as a top destination for HNWIs seeking both personal homes and investment prospects. Our research estimates that global HNWIs have designated around $4.4 billion for investment in Dubai’s residential market, representing a 76 percent increase from 2023.”
The overall residential landscape in Dubai remains strong, with transaction volumes reaching nearly 170,000 deals in 2024, valued at approximately $115 billion. Notably, homes priced at $10 million or more accounted for about 6 percent of the total sales value, underscoring the significance of the high-end segment.
Wealth levels significantly shape buying preferences. For example, 78 percent of those with personal wealth exceeding $15 million express interest in properties in Dubai, with the average purchase budget among GCC-based HNWIs set at $3.1 million. Among ultra-wealthy investors, 25 percent are prepared to invest between $60 million and $80 million in a Dubai residence, while 16 percent are considering purchases that exceed $80 million.
In addition to market trends, Knight Frank emphasizes the increasing influence of family offices in the region. These organizations, which manage wealth across generations, are increasingly drawn to Dubai and Abu Dhabi due to their advanced legal structures and favorable regulations. Buthainah Albaity, Partner and Head of Private Capital and Family Enterprises for Mena, noted the intense competition among regional countries to attract these offices, recognizing their potential to stimulate long-term investment, innovation, and economic stability.
With projections indicating that approximately $84 trillion will be transferred across generations globally over the next two decades, the Middle East is already witnessing a sizable wealth transfer. In Saudi Arabia, many family businesses are transitioning leadership from second to third generations, with Dubai and Abu Dhabi becoming preferred locations for setting up trusts and managing cross-border assets.
Outside the UAE, other Middle Eastern markets are also demonstrating growth potential. In Saudi Arabia, residential property continues to attract significant interest, especially in the holy cities of Makkah and Madinah. Knight Frank’s research suggests approximately $2 billion of potential investment is being contemplated by HNWIs from nine Muslim-majority nations, mainly for personal residences in these revered cities.
Qatar’s real estate market is gaining traction as well, with $537.5 million of private capital actively looking for residential opportunities, out of an estimated $3.2 billion in sales projected for 2024. Meanwhile, Egypt’s real estate sector continues to be highly appealing to GCC investors, with a strong preference for residential properties, branded residences, and retail environments.