Dubai’s property market has cemented its reputation as a global magnet for the ultra-wealthy. In its latest Wealth Report, real estate consultancy Knight Frank has declared that Dubai is the top global destination for luxury property sales, with buyers from around the world flocking to the emirate for its tax-friendly environment, world-class amenities, and high-end lifestyle offerings.

In 2024 alone, the city recorded a remarkable 435 ultra-prime property transactions valued at over $10 million each, more than any other city globally. This puts Dubai ahead of traditional luxury property powerhouses like New York, London, and Hong Kong.

Unmatched Growth in the Luxury Segment

According to Knight Frank, the total value of Dubai’s $10 million-plus sales reached $7.1 billion in 2024, setting a new record for the city. The fourth quarter of 2024 alone witnessed 153 such transactions, reflecting an accelerated appetite among ultra-high-net-worth individuals (UHNWIs) for homes in the emirate.

This surge is part of a broader trend in which global capital is increasingly flowing toward stable, lifestyle-rich markets. Dubai, with its political stability, luxury infrastructure, and favorable investment conditions, is now firmly on the radar of the world’s wealthiest.

Why the Rich Are Choosing Dubai

Knight Frank’s report outlines several compelling reasons why the global elite are choosing Dubai as a place to live, invest, and grow wealth:

1. Affordability in the Luxury Segment

Despite the luxury reputation, Dubai remains more affordable than other top-tier global cities. According to Knight Frank:

• $1 million buys approximately 980 sq. ft. of prime space in Dubai.
• By contrast, $1 million buys:
  • 366 sq. ft. in New York
  • 355 sq. ft. in London
  • 215 sq. ft. in Singapore
  • 172 sq. ft. in Monaco

This price-to-value ratio is highly attractive for UHNWIs who seek large, waterfront or high-rise luxury homes in safe, vibrant cities.

2. Zero Property and Capital Gains Tax

Dubai offers full ownership of freehold properties to foreign buyers, with no annual property taxes, inheritance tax, or capital gains tax. These financial incentives significantly boost the investment appeal of the emirate compared to other mature real estate markets.

3. Safety and Lifestyle

Dubai is consistently ranked among the safest cities in the world. Combine that with year-round sunshine, pristine beaches, high-end dining, luxury retail, and an active art and culture scene, and you get a lifestyle that few other cities can offer.

Where the Ultra-Wealthy Are Buying

Knight Frank’s analysis reveals that luxury property activity is highly concentrated in a few elite districts, with Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island leading the way.

🔹 Palm Jumeirah

• Dominated Q1 2025 with 34 sales over $10 million, totaling $562.8 million.
• Home to beachfront mansions, branded residences (such as One at Palm Jumeirah by Dorchester), and private marina access.

🔹 Emirates Hills

• Known as Dubai’s “Beverly Hills”, this gated golf course community recorded 15 ultra-luxury deals totaling $356.7 million in Q1 2025.
• Notably, a six-bedroom mansion sold for $106.3 million, setting a new record.

🔹 Jumeirah Bay Island

• Home to Bulgari-branded residences and villas.
• Highly limited supply and ultra-exclusive appeal make it a haven for international billionaires.

Emerging hotspots like Palm Jebel Ali, Dubai Islands, and Downtown Dubai are also attracting growing interest as developers launch new luxury projects in these zones.

Who Are the Buyers?

Knight Frank’s report identifies a diverse and growing pool of high-net-worth buyers entering the Dubai market. The buyer demographic includes:

• Tech Entrepreneurs and Crypto Investors from Europe and North America
• High-level Executives from Asia and Africa
• Ultra-wealthy Families from Russia, India, Pakistan, and the Gulf region
• Luxury Lifestyle Seekers from China and Europe

These individuals are not only investing in property for wealth preservation but also relocating their families and businesses to Dubai, further fueling economic growth.

2025 Outlook: Dubai Still Has Room to Grow

Knight Frank anticipates that Dubai’s luxury real estate market will remain strong throughout 2025, with continued growth in both value and volume of transactions. The first quarter of 2025 already saw 111 deals above $10 million, a 5.7% increase over the same period in 2024.

Key factors supporting this outlook include:

• Supply Constraints in prime areas like Palm Jumeirah and Jumeirah Bay
• New Ultra-Luxury Projects, including branded residences by Bugatti, Armani, and Ritz-Carlton
• Residency Incentives like the 10-year Golden Visa tied to property ownership

Risks to Monitor

While the market is currently booming, there are some risks that investors and analysts are keeping an eye on:

1. Over-Supply in Mid-Market Segments

Although luxury properties remain in demand, some analysts caution that overbuilding in mid-tier areas could lead to price corrections.

2. Geopolitical Tensions

Global geopolitical events or economic slowdowns may impact the ability of international investors to purchase property overseas.

3. Interest Rate Trends

While many Dubai buyers purchase in cash, higher global interest rates could affect mortgage-based purchases and investor sentiment.

Despite these risks, the overall sentiment remains strongly optimistic, particularly in the ultra-luxury bracket.

A Strategic Global Investment Hub

Dubai has clearly evolved from being a regional hub to becoming a top-tier global investment destination. Knight Frank’s Wealth Report underlines that the emirate now plays in the same league as London, New York, and Hong Kong—but with the added advantage of affordability, zero taxes, and unmatched lifestyle perks.

Dubai’s success in attracting ultra-wealthy investors has ripple effects across other sectors too, including education, healthcare, hospitality, and finance. With more UHNWIs calling Dubai home, the city is becoming not just a place to invest, but also a place to live, work, and build legacies.

Conclusion

Dubai’s real estate market is in the midst of a historic transformation, and Knight Frank’s data confirms that it is now the world’s leading market for ultra-prime property sales. With a unique mix of tax advantages, safety, lifestyle, and investment potential, the city is drawing record numbers of affluent buyers.

As 2025 progresses, Dubai’s ability to attract wealth from across the globe is expected to strengthen further. From the shores of Palm Jumeirah to the elite estates of Emirates Hills, the city is proving that it’s not just building towers—it’s building trust, value, and a new global standard in luxury real estate.