Dubai’s Prime Real Estate Market Shows No Sign of Slowing Down.

Dubai’s luxury residential sector continues to defy expectations, with 2024 marking the fourth consecutive year of growth in both transaction volumes and capital values. According to the newly released Dubai Prime Residential report by Savills, the city’s real estate market remains firmly on an upward trajectory, driven by a combination of economic strength, political stability, and lifestyle appeal.

This ongoing boom is reshaping buyer behavior and redrawing the city’s real estate map, with premium villas, branded residences, and off-plan luxury developments at the heart of the transformation.

A Shift in Buyer Mindset

Dubai is witnessing a significant shift from renting to ownership among expatriates, particularly in the upper tiers of the market. High-net-worth individuals are increasingly prioritizing space, privacy, and access to lifestyle amenities, leading to soaring demand for larger units and luxury communities.

While 93% of all real estate transactions still occur below the AED 5 million mark, activity in the ultra-prime segment has exploded. Sales of properties above AED 10 million have risen tenfold in just four years, from 469 transactions in 2020 to 4,670 in 2024. The first quarter of 2025 alone recorded more than 1,300 AED 10M+ home sales, representing a 31% increase year-on-year.

The Rise of Luxury Villas

Villas now dominate Dubai’s AED 10M+ segment, accounting for 70% of all transactions in 2024. This reflects a growing appetite for standalone homes in private, green, and family-oriented communities. Some of the most sought-after villa locations include:

• Palm Jebel Ali

• District One West

• The Acres

Jumeirah Islands has emerged as a prime example of the luxury villa resurgence. In 2024, the community saw 89 villa sales above AED 10 million, a remarkable shift from zero such transactions prior to 2021. Many of these deals have been driven by high-spec renovations and a new wave of lifestyle-focused buyers.

Waterfront Apartments Remain Resilient

While villas lead in transaction volume, Dubai’s waterfront apartments continue to command some of the highest price-per-square-foot rates, averaging AED 5,400. Locations such as Palm Jumeirah, Dubai Harbour, and Downtown Dubai remain among the most desirable areas for luxury apartment buyers, particularly those drawn to branded residences and urban resort-style living.

Confidence in Off-Plan Luxury

One of the most striking trends has been the surge in off-plan transactions within the ultra-prime bracket. In 2020, only 14% of AED 10M+ sales were off-plan. By 2024, that number had jumped to 69%, indicating growing investor confidence in future-ready developments and a shift in buyer preference toward modern, lifestyle-led communities.

Outlook: Continued Growth Ahead

Savills forecasts further growth for Dubai’s prime residential segment in 2025, with projected capital appreciation between 8% and 10%. The outlook is fueled by a combination of factors:

• Ongoing wealth migration

• Large-scale masterplan announcements

• Expansion of branded residence offerings

• Strategic infrastructure developments

Among the upcoming projects shaping the city’s luxury landscape are the redevelopment of Jebel Ali Racecourse, the second phase of Jumeirah Golf Estates, and Emaar’s Grand Polo Club and Resort. These projects are set to introduce new levels of quality and exclusivity to the market.

Dubai is also expected to deliver 40% of all branded residences across the Middle East and Africa by 2031, underlining its status as a global capital for premium real estate.

Conclusion

Dubai’s prime residential market is evolving rapidly, not just in numbers, but in the quality, design, and vision of its offerings. From ultra-luxury villas to waterfront apartments and branded off-plan investments, the city is delivering a product that resonates with the world’s most discerning buyers.

For investors and end-users alike, the message is clear: Dubai remains one of the most compelling real estate markets in the world, and the momentum is far from over.

Tavian Properties is proud to be your trusted advisor in navigating this dynamic landscape. Whether you're seeking a sound investment or a world-class home, our team is here to guide you toward the extraordinary.