Palm Jebel Ali emerged as Dubai’s top ultra-luxury residential hotspot in 2025, leading all locations for home sales priced above Dhs20 million, as demand for high-end waterfront properties continued to grow.
Palm Jebel Ali
Data from Property Monitor, cited by Penthouse.ae, shows Palm Jebel Ali accounted for 21 percent of all ultra-luxury home transactions last year. A total of 517 properties were sold in the area, generating sales worth Dhs12.4 billion, the highest value recorded by any location in the emirate.
Off-plan homes drove all ultra-luxury activity on Palm Jebel Ali, reflecting strong buyer confidence in the area’s long-term appeal. Penthouse.ae reported that one of its agents alone sold five villas in the community for a combined value exceeding Dhs143 million.
Market performance 2025
Across Dubai, 2,489 homes priced above Dhs20 million were sold in 2025, underlining the city’s continued appeal to ultra-high-net-worth individuals. Off-plan properties made up 64 percent of these deals, with 1,604 transactions, while ready homes accounted for 885 sales.
The figures indicate a growing shift towards new ultra-prime developments, particularly large-scale master-planned communities.
Other key areas
The Oasis ranked second among ultra-luxury locations, recording 307 transactions and capturing 12 percent of the market. Palm Jumeirah placed third with 273 deals. While Palm Jebel Ali and The Oasis were driven entirely by off-plan sales, Palm Jumeirah remained the leading destination for ready ultra-luxury homes, attracting buyers seeking immediate occupancy.
Other strong-performing areas included Dubai Hills Estate, Mohammed Bin Rashid City, Jumeirah and Downtown Dubai. Business Bay, although lower in overall volume, recorded the single largest transaction of the year: a sky mansion at Bugatti Residences by Binghatti sold for Dhs550 million.
Marcus Andersson, Head of Luxury Sales at Penthouse.ae and Off Plan at Metropolitan Premium Properties, said: “Dubai’s ultra-luxury property market has entered a new phase of maturity. What we are seeing now is not just growth in transaction volumes, but a structural evolution in buyer preferences. Ultra-high-net-worth clients are increasingly drawn to large-scale, waterfront-led master developments such as Palm Jebel Ali and The Oasis, while established destinations like Palm Jumeirah continue to command strong demand for ready, best-in-class homes. This diversification is a clear sign of the market’s long-term strength.”
Outlook for 2026
Penthouse.ae expects Dubai’s ultra-luxury residential market to continue growing in 2026, with sales and rental activity forecast to rise by 10 to 20 percent year-on-year. Limited supply of ultra-prime villas and beachfront homes, along with continued inflows of wealthy residents, is expected to support demand.
Emerging areas such as Palm Jebel Ali and The Oasis are gaining ground as development expands south and west, while established locations including Palm Jumeirah, Emirates Hills and Dubai Hills Estate are expected to remain central to the ultra-luxury segment.
“The influx of ultra-high-net-worth individuals into Dubai is far from peaking,” added Mr Andersson. “Global uncertainty elsewhere continues to drive wealthy individuals toward stable, business-friendly jurisdictions. Dubai’s low-tax environment, lifestyle offering and expanding ultra-prime residential supply position the city as one of the world’s most attractive destinations for UHNWIs, supporting sustained demand well beyond 2026.”
tanvir@dubainewsweek.com
