Savills Middle East’s first Dubai Prime Residential 2025 report reveals sustained growth across Dubai’s luxury property market, marking a fourth year of rising transaction volumes and capital values. The upward momentum continues to be underpinned by strong investor appetite, favourable regulatory conditions, and increased demand for premium homes.
The AED 10 million+ segment, a key benchmark of Dubai’s prime residential landscape, saw a tenfold rise in transactions over the past four years, from 469 in 2020 to 4,670 in 2024. In Q1 2025 alone, over 1,300 homes changed hands at this level, representing a 31% increase year-on-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, Savills Middle East.
Off-plan transactions now account for 69% of all AED 10M+ sales, up from just 14% in 2020, reflecting rising confidence in future stock and a shift in buyer preferences. Among villas, new developments such as Palm Jebel Ali, District One West, and The Acres recorded among the highest transaction volumes, while in the apartment segment, Dubai Harbour, Palm Jumeirah, and Downtown Dubai remain hotspots.
Jumeirah Islands exemplifies the strength of the luxury villa segment, with 89 homes sold above AED 10 million in 2024, a dramatic shift from zero such transactions before 2021. The area has also seen an increase in properties selling for over AED 20 million, largely driven by high-quality renovations.
Villas now dominate the AED 10M+ space, accounting for 70% of transactions in 2024. While waterfront apartments command higher prices per square foot, averaging AED 5,400, demand remains strong across both formats, especially in branded and lifestyle-driven projects.
With Dubai ranking as the most active city globally for branded residences and expected to deliver 40% of all such developments in the Middle East and Africa by 2031, the outlook for the prime segment remains positive.
Savills anticipates continued momentum through the year, with projected growth of 8–10% for the prime segment in 2025, as wealth migration, new masterplan communities, and lifestyle-led developments reshape Dubai’s upper-tier housing market.
“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.
For further insights and detailed analysis, download the full Prime Residential 2025 report from here.
