Islamabad/Dubai, March 18: Dubai has firmly established itself as a global leader in the luxury real estate market, topping the luxury real estate market index with a remarkable 147% increase in property prices between 2019 and 2024, according to Knight Frank’s Wealth Report 2025.
The city’s prime residential market has seen significant growth, with prices increasing by 16.9% by Q3 2024, and they are on track to rise by 20% by the end of the year.
This surge has positioned Dubai among the top performers in the Prime International Residential Index (PIRI), second only to Seoul and Manila.
The wealth of the region continues to rise, with the number of individuals worth at least $10 million increasing by 2.7% last year, placing the Middle East fifth in global wealth rankings.
High Net Worth Individuals in Dubai
Notably, almost 10% of the region’s High Net Worth Individuals (HNWIs) possess wealth exceeding $100 million, a proportion larger than any other region, signaling the immense wealth generated by legacy energy economies.
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Dubai’s luxury market set a new record in 2024, with luxury real estate transactions reaching nearly $31.9 billion between January and September, a 36% increase from the previous year.
The super-prime market (properties valued over $10 million) continues to lead globally, with 435 sales recorded in 2024, surpassing the previous year’s total.
Demand of Luxury Living
The surge in demand is driven by rising liquidity, with 89% of sales in 2024 being cash transactions.
However, the supply of luxury properties has significantly tightened, with a 65% reduction in available super-prime properties over the past year, fueling fierce competition and pushing prices higher.
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This shortage is expected to drive another 5% price increase in 2025.
New luxury hotspots in Dubai are emerging, particularly in Palm Jebel Ali and Business Bay.
Palm Jebel Ali recorded nine $10 million+ sales in Q3 2024, while Downtown Dubai saw a 13.7% surge in property prices, reaching $765 per square foot in 2024.
With limited supply and increasing demand from ultra-wealthy investors, Dubai’s real estate market is poised for continued growth in the coming years, solidifying its status as a global hub for affluent investors seeking exclusive luxury properties.
