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Dubai luxury home prices jump 25% as global prime markets extend rally
Emirate recorded about 500 super-prime transactions in 2025 alone, highlighting sustained demand from ultra-high-net-worth individuals
- PUBLISHED: Thu 23 Apr 2026, 7:49 PM
Prime residential property prices worldwide rose 3.2 per cent in 2025, with Dubai emerging as one of the strongest-performing luxury housing markets globally and reinforcing its status as a leading destination for ultra-wealthy investors.
According to Knight Frank’s latest Wealth Report, Dubai recorded a 25.1 per cent increase in prime residential prices last year, ranking among the top-performing global cities and maintaining its position as the world’s most active market for homes priced above $10 million.
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The emirate recorded about 500 super-prime transactions in 2025 alone, highlighting sustained demand from ultra-high-net-worth individuals seeking stable investment environments, lifestyle advantages and long-term residency opportunities. Analysts say the strength of Dubai’s luxury property segment reflects structural shifts in global wealth flows toward internationally connected and tax-efficient jurisdictions.
Globally, 73 of the 100 tracked prime residential markets recorded price growth in 2025, underscoring the resilience of luxury housing compared with mainstream property sectors. Tokyo led the rankings with a 58.5 per cent surge in prime new-build apartment values, while cities such as Miami, Mumbai and Brisbane were identified as emerging hotspots for future luxury growth.
Regionally, the Middle East recorded the strongest performance among global luxury housing markets, posting average price growth of 9.4 per cent. This outpaced Latin America and the Caribbean at 4.7 per cent, Asia-Pacific at 3.6 per cent and Europe at 3.3 per cent, while North America declined by 0.9 per cent due largely to price corrections in Canada.
Dubai’s strong performance continues to be supported by sustained inflows of global capital, investor-friendly regulations and rising demand for turnkey homes among internationally mobile buyers. Limited supply of ready-to-move-in luxury properties has further strengthened price premiums across prime locations.
The emirate’s appeal has broadened beyond traditional real estate investors to include entrepreneurs, family offices and hedge-fund managers relocating from Europe, Asia and Africa. This shift reflects Dubai’s growing role as a strategic residential and financial base for globally mobile wealth.
Knight Frank said ultra-high-net-worth individuals are increasingly organising their lives across multiple jurisdictions rather than relying on a single permanent residence, boosting demand for luxury homes in globally connected hubs such as London, Singapore and Dubai.
With global wealth creation continuing to accelerate and mobility among affluent investors rising, Dubai is expected to remain one of the most dynamic prime residential markets, supported by strong transaction activity and sustained interest in trophy assets across its luxury real estate sector.
