Dubai’s luxury real estate market has posted a record-breaking first half of the year, with high-end property transactions rising sharply as global investors continue to show strong interest in the emirate’s premium residential segment.
Luxury transactions surge
A total of 3,731 properties priced above Dhs10 million were sold in the first half of 2025, marking a 62.7% increase from the same period last year, according to Engel & Völkers Middle East. The second quarter alone saw 2,388 such deals, setting a new quarterly high.
This high-end category now represents over 4% of the total property market, compared to 1.1% in 2020. Notable transactions included a Dhs425 million sale in Emirates Hills and a Dhs300 million beachfront villa deal on Palm Jumeirah.
Brokerage performance reflects demand
Engel & Völkers Middle East reported a 48% year-on-year rise in total transactions and a 40% increase in net commission income during H1 2025. The company highlighted strong activity across both the luxury and upper mid-market segments.
Buyer demographics also shifted, with Indian investors leading purchases, followed by buyers from Germany, the UK, and Portugal.
Increased interest was noted from European countries where the firm maintains operations, including Spain, Austria, and the Netherlands.
“Dubai is no longer simply a hotspot for speculative investors but is now a permanent home for the world’s elite,” said Daniel Hadi, CEO of Engel & Völkers Middle East.
“With 62% growth in Dhs 10 million-plus sales and a growing population of resident millionaires, the luxury segment is no longer a niche; it is central to Dubai’s real estate identity.”
Wider market trends
Dubai’s overall residential market recorded a 22.7% year-on-year increase in sales in H1 2025. Transaction volumes were over six times higher than in the same period of 2020. Off-plan sales grew 19.9% to 54,742 transactions, while the secondary market rose 26.8% to 38,168 sales.
Apartments remained dominant, with 71,879 units sold — an 18.2% rise from last year. This segment accounted for 79% of total transactions. Key off-plan areas included Jumeirah Village Circle, Business Bay, and Dubai Residence Complex. Dubai Marina, Downtown Dubai, and MBR City led secondary market demand.
Townhouses and villas rise
Villas saw a 27.6% increase in transactions and a 53.5% rise in value to Dhs78.3 billion. Demand was particularly strong in emerging suburban communities like The Oasis, Grand Polo Club, and The Valley.
Townhouses recorded the fastest growth, with 13,619 transactions — a 57.4% jump year-on-year — and a total value of Dhs42 billion. Off-plan launches in Damac Islands, Damac Hills 2, and The Valley were key drivers of this growth.
Outlook for 2025
The market is expected to remain active in the second half, with new initiatives such as the First Home Buyer Programme aiming to support resident buyers. Engel & Völkers points to factors including Dubai’s population growth, stable regulations, and digital infrastructure as drivers of continued demand.
“With no significant oversupply risks on the horizon and demand surging across every segment, Dubai’s residential market is set to remain on an upward trajectory,” Hadi added.
“As Engel & Völkers, we are proud to support this transformation — not just as brokers, but as long-term partners to the world’s most discerning buyers.”
tanvir@dubainewsweek.com
