Dubai’s luxury real estate market is surging, breaking records with $10 million+ sales, as investors flock to its opulent developments, from Palm Jumeirah to the rising Palm Jebel Ali. In addition, tourism is driving hotel expansion, with new luxury resorts emerging. Thus, strategic development and global appeal are making the emirate a top real estate destination.

01 March 2025

Dubai’s real estate market isn’t just booming; it’s shattering records and redefining luxury.  From soaring skyscrapers to opulent waterfront villas, the emirate’s property landscape embodies global wealth and ambition, attracting international capital and showcasing a relentless drive to create groundbreaking and luxurious developments.

Fuelled by international high-net-worth individuals, a thriving economy, and stunning developments, the emirate’s real estate sector is a magnet for investment, setting new benchmarks for luxury sales and solidifying its position as a leading global property hub.

Uber-luxury homes, hospitality havens, state-of-the-art offices and expansive malls are all being built to meet the ever-increasing demands of modern home-owners, tourists and investors.

Over the past two years, Dubai’s luxury residential market has been setting records for $10 million+ home sales, registering 434 and 435 transactions above $10 million, during 2023 and 2024 respectively, further cementing the emirate’s position as the world’s leading market for luxury home sales, according to the latest analysis from global property consultant, Knight Frank.

“Despite macroeconomic headwinds, Dubai’s attractiveness as a hub for international wealth continues to grow, with developers struggling to match the pace of demand for ultra-luxury residences,” Faisal Durrani, Partner – Head of Research, MENA, Knight Frank, commented.

The Palm Jumeirah remains Dubai’s luxury sales hotspot, recording 127 deals (29 per cent of the total volume) worth over $10 million in 2024, amounting to nearly $2.3 billion of property sales and accounting for 32.5 per cent of such sales by total value.

The emirate’s second palm-tree-shaped island, the upcoming Palm Jebel Ali, has been rapidly gaining momentum, finishing second in transaction volume with 36 deals. This underscores the immense appetite in the marketplace for luxury waterfront properties. The first properties on Palm Jebel Ali are expected to be handed over in 2027.

This momentum continues to be maintained in 2025, with property sales in January having totalled AED44.4 billion ($12 billion), a 24.1 per cent increase in value on the same month last year, according to a report by fäm Properties.  The market update revealed that a total of 14,236 transactions were made during the month, which represented a 23.2 per cent increase in volume over January 2024.

Dubai property sales for the month of January have now risen by 822 per cent in value over the last five years – from AED4.8 billion (2,700 transactions) in 2020, AED6.6 billion (3,300) in 2021, AED16.3 billion (5,700) in 2022, AED27.8 billion (9,700) in 2023 and AED35.8 billion (11,600) last year.

The ever-surging tourist numbers is creating demand for additional hotels and resorts even as the emirate expands its infrastructure – including airport, metro and roads – to cater to the requirements of a growing metropolis. Data indicates Dubai already holds a strong position globally in terms of room inventory, comparable to London and exceeding other major cities. The emirate is expected to open a further 5,344 rooms this year, according to the latest data released by CoStar, a leading provider of commercial and residential real estate information, analytics, and online marketplaces..

The high quality of Dubai’s hospitality offerings continues to be recognised; in its first year of operations, The Lana was ranked at No 23 on The World’s 50 Best Hotels 2024 list, while Atlantis The Royal, in its second year of operations, was No 9.

Private developers are playing a crucial role in expanding Dubai’s hospitality capacity. For instance, Kleindienst Group announced a massive $6-billion expansion at The Heart of Europe on the World Islands, adding 5,000 five-star hotel rooms, a 10 per cent increase to the existing inventory.  Among the latest hotels unveiled by the group at the World Islands is the Marbella Resort Hotel, a Spanish-inspired, AED1 billion venture. 

The Dubai Department of Economy and Tourism (DET) is actively seeking further investment and brand diversification across established and emerging districts like Palm Jebel Ali and Dubai South. Dubai’s attractiveness for tourism investment is highlighted by its leading position globally in greenfield FDI projects in H1 2024, according to the Financial Times’ ‘fDi Markets’ data.

Let’s take a look at some of the prime projects and developers:

 

Palm Jebel Ali and Palm Jumeirah

The Palm Jumeirah’s established success and the rapid development of Palm Jebel Ali further solidify their position as the most coveted addresses in Dubai’s real estate market, attracting both residents seeking an unparalleled lifestyle and investors looking for high-value opportunities.

Nakheel, a member of Dubai Holding Real Estate, made significant strides on  its Palm Jebel Ali project last year, while also moving ahead with further work at Palm Jumeirah. 

Palm Jebel Ali saw substantial progress, with Nakheel awarding several contracts for marine works and infrastructure development.  These contracts signal a rapid acceleration of the project, with the first eight fronds expected to be site-ready for villa construction this quarter and villa handovers anticipated by late 2026 (see Pages 20-21).  

Meanwhile, at Palm Jumeirah, Nakheel awarded a $490-million contract for the construction of Como Residences, a luxury residential tower. Scheduled for handover in Q2 2028, the 75-storey residences will stand over 300 m tall and offer 81 units, ranging from two- to seven-bedroom apartments, as well as a spacious duplex penthouse.

 

Dubai South and Expo City

Dubai South, an expansive urban master-development symbolising Dubai’s ambition to become the world’s most sustainable, diverse, and inclusive city, witnessed a flurry of real estate activity throughout the past year.  This dynamic hub, envisioned as a self-contained city, saw major project launches, expansions, and masterplan approvals, solidifying its position as a key driver of Dubai’s growth. 

A significant area within Dubai South is Expo City, a distinct district built on the legacy of Expo 2020.  Expo City’s new masterplan, approved by Dubai’s Ruler Sheikh Mohammed bin Rashid Al Maktoum last October, positions it as a key urban centre within the Dubai 2040 Urban Master Plan, further enhancing Dubai South’s appeal.  The plan outlines residential, commercial, and innovation-focused zones within Expo City, including the new headquarters for DP World and an expanded Dubai Exhibition Centre (DEC) venue.  A $2.72-billion expansion of DEC is now under way that will increase the exhibition space from 58,000 sq m to 180,000 sq m by 2031, making it the largest indoor exhibition and events destination in the region (see UAE Focus, Pages 56 and 59).

Spanning 3.5 sq km, Expo City Dubai is expected to be home to more than 35,000 residents and 40,000 professionals as it develops into a global centre for businesses, investors, homeowners and visitors.

Beyond Expo City, Emaar, in partnership with Dubai World Trade Centre (DWTC), has launched Expo Living, a new urban community strategically located near Expo City, with the first phase, Terra Heights, now available.  Expo Living will cover a total area of 451,295 sq m, including 358,473 sq m of residential spaces, complemented by Dubai Expo Mall.

Construction activity is under way at Dubai South’s Golf District, where BT Holding is developing a large gated community offering a diverse range of residential options. 

In addition, Dubai South Properties continues to advance its projects, with 788 residential units under construction at The Pulse Beachfront; and its premium South Bay – featuring more than 800 spacious villas and townhouses and 200 luxurious waterfront mansions – experiencing rapid sell-outs and seeing the launch of projects like the 209-unit South Living.  The developer has also flagged off construction of the third, fourth and fifth phase of the South Bay development.

 

Other key developments

Among the most prolific developers in Dubai is Azizi Developments, which has a string of residential projects planned or under construction in various parts of the emirate. These include its flagship projects the ultra-high-rise Burj Azizi and the large-scale Azizi Venice, as well as Azizi Vista and Beach Oasis in Dubai Studio City, and Amber in Al Furjan.

Burj Azizi, a proposed 725-m, 131+ storey skyscraper on Sheikh Zayed Road, is set to become the world’s second tallest tower upon completion in 2028 (see Pages 18-19). 

Azizi Venice, a massive mixed-use development in Dubai South, features a large swimmable lagoon, beaches, and over 36,000 residential units (apartments, villas, and mansions). Azizi appointed RMJM as the design consultant for the overall development and NEB for the design of 11 residential towers.  The project will include a retail boulevard, an opera house (Azizi Opera), and several hotels.  Azizi is acting as the master developer for the project, overseeing construction of buildings and infrastructure.

Among other developers, Azizi Developments has announced steady progress on Azizi Vista and Beach Oasis, while its premium condominium project – Amber – in Al Furjan community is close to completion.

Another leading developer Damac Properties launched several significant projects in 2024, focusing on master communities and luxury waterfront developments. These include two new master communities in Dubailand: Damac Islands, its largest to date, is a tropical-themed development featuring six island-inspired clusters with luxury villas and townhouses, along with an array of resort-style amenities: and Damac Sun City, its fifth master community, emphasises wellness with amenities like hiking trails, yoga studios, and crystal healing spaces, offering a blend of nature and luxury.

Meanwhile, Damac continued its focus on waterfront living with the launch of Phase Two of Lagoon Views within Damac Lagoons, offering 600 Mediterranean-inspired apartments.

The developer also awarded the main works contract for Damac Harbour Lights, a 52-storey tower in Dubai offering luxury apartments with maritime-inspired design, this follows the completion of shoring and piling works on the project which is expected to be finished by Q2 2027. In addition, substructure work is substantial complete on its Damac Bay 1 and Damac Bay 2 at Dubai Harbour   (see Pages 22-23). 

A  notable developer focused on luxury projects is Al Habtoor Group, which made significant progress on its residential projects in Dubai during 2024.  Substructure works were completed in November last year at The Residences, Al Habtoor Grand, a 49-storey tower in Dubai Marina offering luxury apartments, townhouses, and penthouses with private beach access and high-end amenities. 

The pioneer developer has also recorded more than one-third completion of Al Habtoor Tower, which poised to be the world’s largest residential building.  This project is notable for its innovative construction techniques, including record-breaking 100-m-deep barrette foundations and a rapid six-day floor cycle.  The tower, aiming for LEED Platinum certification, will feature ultra-luxurious living and the world’s fastest elevators.

Another UAE developer Binghatti launched several projects in Dubai during 2024. Among them are the $1.09-billion Binghatti Ghost in Al Jaddaf, which will feature 770 residential units and various amenities; Binghatti Royale in Jumeirah Village Circle (JVC), with a circular design, which will offer 354 apartments and 16 retail spaces, when it is handed over in H2 2025; Binghatti Hills, a large development with 1,666 units near Dubai Hills. The developer has also reported strong sales for the 104-storey Burj Binghatti Jacob & Co. Residences, a joint development with renowned high jewellery and watchmaking brand Jacob & Co that is set to become the world’s tallest residential tower (see also Pages 24-25).

Meanwhile, Mered made significant progress on its flagship project, Iconic Residences Design by Pininfarina, in Dubai Internet City, where the main construction began last month with the official pouring of concrete. Targeted for completion in Q3 2027, this 290-m tower, the tallest in Dubai Internet City, will offer 310 luxury apartments. Additionally, Mered has partnered with Hirsch Bedner Associates (HBA) to design the interiors of the Iconic Tower, emphasising a blend of luxury and functionality inspired by Pininfarina’s vision.

Other major developments include:

Serenia District: Palma Development has announced the launch of Serenia District, a $1.36-billion upscale residential community in the heart of Jumeirah Islands. Spanning 600,000 sq ft with a built-up area of 3.5 million sq ft, the project features six integrated towers, centred around six unique lifestyle zones of the community: the Serenia Signature Clubhouse, Health and Social zone, Sports and Recreation spaces, Family Oasis, Nature Discovery zone, and a Wellness Retreat (see UAE Focus, Page 58).

Six Senses Residences Dubai Marina: Select Group has awarded a $1 billion construction contract to Arabian Construction Company for its ultra-luxury Six Senses Residences Dubai Marina project.  Located in Dubai Marina, the 122-storey development will offer 251 residences (two- to four-bedroom, penthouses, and sky mansions) and over 61,000 sq ft of fitness and wellness facilities.  Construction is scheduled for completion in 2028.

Takaya: Union Properties has launched and broken ground on its estimated $544 million mixed-use development, Takaya, in Motor City.  The project, spanning 436,175 sq ft, will feature three residential towers offering 788 luxury apartments (studios to three-bedrooms, plus penthouses), townhouses, and villas, along with a 500-m shopping boulevard.  Takaya is positioned in the mid- to high-end segment, emphasising modern amenities, spacious layouts, and smart building technologies for energy efficiency.  The project is expected to be completed in Q4 2027. 

• Future-forward metropolis
• Shattering records
• ‘Islands in the sky’ wellness oasis
• Burj Azizi, a towering icon
• DHRE creating premier waterfront communities
• Landmark towers to rise at Dubai Harbour
• Doka rises to the Binghatti challenge
• Echoes of past: Real estate faces cost surge
• Projects at a glance

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