BrazilDubai’s prime residential market showing no signs of slowing down
Dubai’s real estate sector is showing no signs of slowing down, with 2024 marking the fourth consecutive year of growth in transaction volumes and capital values. That is according to analysis by Savills.
In the inaugural edition of its Dubai Prime Residential repot, Savills places the spotlight on Dubai’s booming residential sector, concluding that the country’s sustained momentum is driven by a strong economy, sound political policy, a favourable business environment, and a tax-free setup.
At the same time, Dubai has witnessed a strong shift from renting to homeownership among expatriates, fueling demand for larger units and premium developments with modern amenities. This trend has significantly contributed to the surge in transactions exceeding AED 10 million.
Whilst 93% of all transactions in Dubai remain below AED 5 million, the growth in AED 10 million+ sales has been staggering in the post pandemic period. This prime market segment has risen tenfold from 469 transactions in 2020 to 4,670 in 2024. And in Q1 2025 alone, over 1,300 homes changed hands at the AED 10 million+ level, representing a 31% increase year-on-year.
“Dubai’s prime residential market continues to attract high-net-worth individuals seeking space, privacy and superior lifestyle quality. This is particularly evident in the consistent demand for luxury villas and branded residences,” said Andrew Cummings, Head of Residential at Savills.
Off-plan transactions now account for 69% of all AED 10M+ sales, up from just 14% in 2020, reflecting rising confidence in future stock and a shift in buyer preferences. Among villas, new developments such as Palm Jebel Ali, District One West, and The Acres recorded among the highest transaction volumes, while in the apartment segment, Dubai Harbour, Palm Jumeirah, and Downtown Dubai remain hotspots.
Jumeirah Islands exemplifies the strength of the luxury villa segment, with 89 homes sold above AED 10 million in 2024, a dramatic shift from zero such transactions before 2021. The area has also seen an increase in properties selling for over AED 20 million, largely driven by high-quality renovations.
Villas now dominate the AED 10M+ space, accounting for 70% of transactions in 2024. While waterfront apartments command higher prices per square foot, averaging AED 5,400, demand remains strong across both formats, especially in branded and lifestyle-driven projects.
The outlook
With Dubai ranking as the most active city globally for branded residences and expected to deliver 40% of all such developments in the Middle East and Africa by 2031, the outlook for the prime segment remains positive.
Savills anticipates continued momentum through the year, with projected growth of 8% to 10% for the prime segment in 2025, as wealth migration, new masterplan communities, and lifestyle-led developments reshape Dubai’s upper-tier housing market.
“Recent master plan announcements including the development of Jebel Ali Racecourse and the second phase of Jumeriah Golf Estates, alongside launches such as Emaar’s Grand Polo Club and Resort look set to deliver further prime product to Dubai’s residential market,” noted Cummings.
