- Investment in the residential sector hit US$ 100bn in 2024
- Residential prices climb 3.7% during Q1 and now stand 17.6% above 2014 peak
- Dubai was world’s busiest market for US$ 10 million+ homes for second year running
Dubai’s real estate market continued to expand during 2024, with values and rents climbing to fresh highs and the total value of transactions across all sectors topping US$ 207bn, while demand for homes from the global elite continues to intensify, according to the 2025 edition of the Destination Dubai report from global property consultancy Knight Frank.
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Price growth was led by record residential sales of almost 170,000, totalling US$ 100bn in 2024, and momentum has continued into 2025, with home sales hitting AED 100bn by 4 March – the fastest pace on record.
The report also reveals that Dubai was the world’s busiest market for sales of US$ 10 million+ homes for the second consecutive year. The city recorded 435 sales in this exclusive bracket in 2024, almost equalling the number of US$ 10 million+ home sales in London and New York combined. A further 111 homes sold for over US$ 10 million during Q1, the highest number for any January to March period.
Looking ahead, Dubai continues to be a magnet for global wealth, and Knight Frank’s survey of 387 high-net-worth individuals (HNWI) based in India, Saudi Arabia, the UK and East Asia (China, Hong Kong and Singapore), each with an average net worth of US$ 22 million, carried out in partnership with YouGov, revealed a staggering US$ 10.3bn of private capital is taking aim at the emirate’s residential market.
Faisal Durrani, Partner – Head of Research, MENA, said: “As we have found in our research in previous years and mirroring the experience of our teams, the strongest appetite for a real estate purchase in the UAE comes from those with the greatest wealth and is a testament to the success of the government’s programmes to strengthen the emirate’s appeal as a place for the world’s wealthy to live and invest.”
Top Investment Targets
The UAE’s residential sector is the top target for Saudi HNWI (79%), followed by East Asian HNWI (68%) and potential buyers from the UK (67%).
The UAE, and Dubai in particular, boasts some of the world’s highest concentrations of branded homes and it is no surprise to see this residential subsector emerge as the second most sought-after real estate sector at 49%.
The country’s office market (47%) rounds off the top three real estate sector preferences.
While the residential sector is a clear favourite, irrespective of personal wealth, its appeal appears to vary based on net wealth, ranging from 52% among those with personal wealth of US$ 10-15 million and climbing to 82% for those with a net worth of US$ 1-2 million.
Overall, 71% of global HNWI survey respondents named Dubai as their preferred emirate in the UAE for a real estate acquisition. This figure is highest among Saudi HNWI (80%), followed by British (74%), Indian (69%) and East Asian (61%) HNWI.
Will Mckintosh, Regional Partner – Head of Residential, MENA said: “The depth of demand from these nationalities is also reflective of our own market experience. Indeed, during 2024, Saudi, Indian and British nationals accounted for just over 50% of homes sold by Knight Frank in Dubai.”
The demand for an asset in Dubai is highest among HNWI with personal wealth of US$ 1-2 million (79%) and those worth US$ 7-10 million (79%). Similarly, the city holds strong appeal for those with personal wealth of U$ 20-30 million (70%) and US$ 30-50 million (67%).
Shehzad Jamal, Partner – Strategy & Consultancy, MEA, said: “The super-rich remain laser-focused on purchasing luxury homes in the city, and this unrelenting demand has been a critical driver of Dubai being the world’s busiest US$ 10 million+ homes market for the second year running.”
Where The Wealthiest Want To Buy
Dubai Marina (28%) was once again the top target neighbourhood for a residential acquisition among HNWI, with Dubai Hills Estate (24%) and Emirates Hills (23%) in second and third place, respectively.
Jamal said: “For our wealthiest HNWI respondents (net worth > US$ 50 million), Dubai Marina (43%) commands the highest interest, demonstrating the enduring appeal of the long-standing poster-child of Dubai’s property market. For this group of super-rich buyers, Dubai Hills Estate (30%) follows in second place, while Emirates Hills (22%) rounds off the top three likely home purchase locations.”
Price Surge Continues
Dubai's residential market experienced another strong year in 2024, with property values rising by 19.1% to an average of AED 1,685 psf, pushing prices to 13.3% above the 2014 peak.
On average, villa sale prices grew by 19.6% in the 12 months to the end of Q1, reaching AED 2,088 psf, reflecting a 107.6% uplift on Q1 2020. This sustained growth illustrates the strong appeal of stand-alone villas, beachfront homes and branded residences that provide instant access to the Dubai lifestyle.
Knight Frank highlights that in this current property cycle there has been a rise in genuine end-users, rather than the speculative purchasers that have defined previous cycles. This change is reflected in the fact that there has been a reduction in the number of homes available for sale across the city, with the very top end of the market impacted the most. For instance, in the exclusive AED 50 million+ bracket, the number of homes available to purchase in 2024 fell by 48% when compared to 2023.
Durrani said: “While we have anecdotal evidence of end-users being the most active buyer group in the market, our research has revealed a number of other key tell-tale signs. For instance, we have also found that 83% of global HNWI are interested in purchasing land in Dubai to build their own home. This appetite is high almost irrespective of nationality. Dubai has matured quickly throughout this property cycle and this is clearly evidenced by the desire of potential global HNWI home buyers to settle in the city.”
What Hnwi Are Prepared To Spend
The average allocated budget for a home purchase in Dubai by global HNWI is US$ 32 million. However, 54% of those with personal wealth of over US$ 50 million would be prepared to buy a home in Dubai for more than US$ 80 million.
Saudi HNWI have the highest average budget (US$ 45.7 million), followed by those from India (US$ 44.6 million) and the UK (US$ 30 million). Asian HNWI have the lowest average budget among Knight Frank’s survey respondents, however, this was still a very healthy US$ 23 million.
About the research
Knight Frank’s Destination Dubai surveys were conducted in partnership with YouGov. This year, we spoke with 387 global HNWI respondents across the UK, India, Saudi Arabia and East Asia (China, Hong Kong, Singapore) to understand their attitudes, appetites, and aspirations towards investing in property in Dubai.
We selected nationals from these nations to reflect Dubai’s historic source markets for real estate purchasers, which also reflects our experience in the market.
The globally recognised definition of a high-net-worth individual (HNWI) is usually US$ 1 million, however our survey sample has an average net worth of US$ 22 million, excluding the value of their main home, or primary residence.
Faisal Durrani, Partner - Head of Research, MENA
Shehzad Jamal, Partner – Strategy & Consultancy, MEA
Will Mckintosh, Regional Partner – Head of Residential, MENA
About Knight Frank:
Knight Frank LLP is the leading independent global property consultancy.
Headquartered in London, the Knight Frank network has 740+ offices across 50+ territories and more than 27,000 people. The Group advises clients ranging from individual owners and buyers to major developers, investors, and corporate tenants. For further information about the Firm, please visit www.knightfrank.com
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