Dubai’s ultra-luxury realty sector is set to reach new heights in 2025 as high-net-worth individuals (HNWIs) discerning investors make a beeline for investing in ultra-luxury properties. Prime residential capital values are projected to grow by up to 9.9%, outpacing 30 other global cities driven by the following factors —
- a sustained influx of ultra-high-net-worth individuals
- a limited supply of premium properties
- strategic government initiatives
- tax-free property ownership
- high rental yields
- political stability
- the emirate’s focus on innovation, sustainability & world-class infrastructure
The city is forecasted to welcome approximately 6,500 HNWIs annually through 2024-2026, fueling demand for exclusive residences. Prime locations such as Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills are experiencing critically short supply, keeping demand consistently high. This scarcity is further exacerbated by the limited number of ultra-luxury units currently under construction, with only 16,500 falling into this category.
| Price Bracket | Number of Units |
| AED 5-10 million | 10,209 |
| AED 10-15 million | 2,360 |
| AED 15-30 million | 2,831 |
| AED 30-60 million | 809 |
| AED 60+ million | 330 |
Over the last 10 years, sales of luxury villas and apartments in Dubai valued above AED 15 million have risen phenomenally, reaching AED 71 billion in 2024 for the second year in a row, an increase of nearly 688% since 2015.
However, just over 326,000 properties are currently under construction in Dubai. A paucity of ready-to-move-in properties, in particular, amid earnest buyer and investor interest, will support continued price growth in 2025. Also, the vast majority of these off-plan properties are a long way from completion, with merely 72% in the 0-20% range in terms of construction progress.
As the market evolves, there’s a noticeable shift towards boutique, limited-supply developments that retain exclusivity and command premium prices. With property prices projected to rise by 8% in 2025, Dubai’s ultra-luxury realty market presents lucrative opportunities for investors aiming to capitalize on the city’s enduring allure and robust growth prospects.