Dubai’s prime residential property market has recorded a fourth consecutive year of growth, according to Savills Middle East’s first Dubai Prime Residential 2025 report.
The sector continues to attract high-net-worth individuals, with increasing demand for premium villas and branded residences.
Strong growth in transactions
The Dhs 10 million-plus segment has seen a significant rise in transactions, jumping from 469 in 2020 to 4,670 in 2024.
In the first quarter of 2025 alone, over 1,300 properties were sold at this level — a 31% increase compared to the same period last year.
“Dubai’s prime residential market continues to attract high-net-worth individuals seeking space, privacy and superior lifestyle quality. This is particularly evident in the consistent demand for luxury villas and branded residences,” said Andrew Cummings, Head of Residential Agency at Savills Middle East.
Off-plan market expands
The report highlights a shift in buyer preferences toward off-plan purchases, which now make up 69% of Dhs 10M+ transactions, compared to just 14% in 2020. Popular villa developments include Palm Jebel Ali, District One West, and The Acres.
In the apartment market, areas such as Dubai Harbour, Palm Jumeirah, and Downtown Dubai continue to see high activity.
Jumeirah Islands has also emerged as a strong performer in the luxury villa segment. In 2024, 89 homes sold for over Dhs 10 million — a notable change from zero transactions in this range before 2021. The rise in values is attributed to extensive renovations and upgraded properties.
Villas lead the market
Villas made up 70% of all transactions above Dhs 10 million in 2024. Although waterfront apartments continue to command higher rates per square foot — averaging Dhs 5,400 — branded and lifestyle-driven developments are seeing strong interest across both formats.
Dubai is also the world’s most active market for branded residences and is expected to deliver 40% of such developments in the Middle East and Africa by 2031.
Positive outlook for 2025
Savills forecasts an 8–10% growth in Dubai’s prime residential market in 2025, supported by wealth migration and large-scale masterplan projects.
“Recent master plan announcements including the development of Jebel Ali Racecourse and the second phase of Jumeriah Golf Estates, alongside launches such as Emaar’s Grand Polo Club and Resort look set to deliver further prime product to Dubai’s residential market,” Cummings concluded.
tanvir@dubainewsweek.com
