Dubai’s ultra-luxury property market is witnessing a surge in demand as affluent buyers from around the globe compete for a dwindling supply of high-end properties. The demand for ultra-luxury homes in Dubai rebounded strongly in January 2025, with ultra-high-net-worth individuals actively investing in prime and waterfront properties. The market faces a significant supply squeeze, with available luxury homes in prime areas decreasing by 47% over 2024. This scarcity has created intense competition among buyers, sending prices skyrocketing.
The most sought-after areas for ultra-luxury properties are prime locations like —
- Palm Jumeirah
- Emirates Hills
- Downtown Dubai
The unprecedented surge in demand is attributed to several factors, such as —
- Dubai’s favorable tax environment
- strategic geographical position
- investor-friendly reforms & policies
- the Golden Visa program
- long-term residency options
Dubai’s luxury realty market offers relative value compared to other global hotspots. With rental yields ranging from 5% to 9%, significantly higher than those in New York or London, Dubai remains an attractive investment destination.
According to analysts, the luxury realty prices will see a 5-10% increase this year, especially in prime locations. This trend is expected to maintain Dubai’s allure as a leading global luxury real estate market in the coming years.