Dubai Luxury Home Sales Boomed in 2025, Hitting a Record 500 Deals
Just five years ago, the U.A.E. city recorded only 30 home sales priced at $10 million and above.
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Dubai had a banner year in 2025, logging a record-breaking number of home sales at $10 million and above, according to a report from Knight Frank on Monday.
The U.A.E. city closed out the year with 500 sales valued at $10 million-plus—including 68 homes that sold for more than $25 million, another all-time high—producing a total value of $9.05 billion, a 27.7% increase of 2024’s luxury sales volume of $7.09 billion.
A strong fourth quarter helped propel the market to these record numbers, with 143 homes selling for more than $10 million during the final three months of the year, up from 103 in the third quarter.
Regional and worldwide luxury buyers alike continue to be compelled to buy property in Dubai, “attracted by the high quality of life, world-class amenities and infrastructure, enabled by the government’s ambitious investment programs,” Faisal Durrani, partner and head of research for Knight Frank’s Middle East and North Africa (MENA) region, said in the report.
“Dubai’s meteoric rise as the world’s busiest market for $10 million-plus homes, having increased from just 30 sales in 2020 to 500 by the end of 2025, is best reflected in the emirate’s growing reputation as a magnet for the global elite,” he said.
The tree-shaped man-made island of Palm Jumeirah retained its spot as the most popular community for luxury home buyers, recording 28 sales of homes valued at more than $10 million during the fourth quarter.
The yet-to-be-completed Palm Jebel Ali—which closely resembles the shape of Palm Jumeirah—was close behind with 22 sales. It’s expected to be completed in 2028.
“At 50% larger than its established neighbor Palm Jumeirah, Palm Jebel Ali remains a destination to watch,” said Will McKintosh, regional partner and head of residential for MENA.
“While it will obviously take time to reach the maturity of other established communities, the 2025 sales figures are a welcome indication of its high potential and the growing demand from the wealthiest buyers for prime waterfront property and the luxury Dubai lifestyle.”
The priciest deal of the quarter was for a six-bedroom apartment in Bugatti Residences by Binghatti, within the Business Bay community.
The 47,200-square-foot home sold for AED 550 million (US$149.7 million), setting a U.A.E. sale price record for a penthouse.
The previous record was held by a 22,000-square-foot penthouse at the Como Residences on the Palm Jumeirah that sold for AED 500 million in November 2023.
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Australia’s median advertised rent has climbed to a record high, with every capital city recording quarterly price growth despite a slight lift in vacancy rates.
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Australia’s rental market has reached a new milestone, with national median advertised rents climbing to a record $670 per week in the June quarter as prices continued to rise across every capital city.
New data from realestate.com.au shows national rents increased 3.1 per cent over the quarter and 6.4 per cent over the past year, while capital city rents rose 2.2 per cent over the quarter to a median of $690 per week, up $10 from the March quarter.
REA Group economist Luc Redman said rental price growth had continued despite a small increase in vacancy rates.
“National median rents reached a new high in the June quarter, with widespread price growth across the capitals,” he said.
“The rent increases occurred despite a small increase in the rental vacancy rate over the same period.”
Melbourne and Perth recorded the strongest quarterly growth among the capitals, with rents increasing 3.5 per cent in each city. On an annual basis, Perth led the nation with rental growth of 10.3 per cent, followed by Hobart at 9.1 per cent and Darwin at 7.7 per cent.
Sydney remained Australia’s most expensive city for renters, with a median advertised rent of $800 per week, while Melbourne and Hobart were the most affordable capital cities at $600 per week.
Regional markets were more subdued, with rents holding steady over the quarter but remaining 5.3 per cent higher than a year ago, suggesting the rapid pace of growth outside the capitals has eased.
Mr Redman said the full impact of the Federal Budget’s changes to investor tax settings was yet to be seen.
“The May Federal Budget, which announced sweeping changes to investor tax settings, occurred in the middle of the quarter, so the full impact on the rental market is yet to be seen,” he said.
“While the vacancy rate has edged higher, the expected decrease in investor demand due to the budget’s tax changes could slow the pace of new supply, putting further pressure on rents.”
The report also found house rents continued to outpace units, rising 2.9 per cent across capital cities over the quarter compared with 1.5 per cent for units. Melbourne was the only capital where renting a unit was more expensive than renting a house, reflecting demand for well-located apartments.
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