Residential skyscraper buildings in the Dubai Marina district of Dubai.
The boom in Dubai’s luxury market continued into the first quarter, with wealthy buyers again driving record sales of homes valued above $10 million.
Over the first three months of 2025, 111 homes were sold with a combined value of $1.9 billion, a 5.7% increase from the same period last year, according to researcher Knight Frank. There were 12 sales of homes valued at $25 million or more in the first quarter, the broker said in a report.
The jump in sales shows how Dubai’s real estate market continued to see surging demand in the months ahead of the global market turmoil in April after President Donald Trump announced sweeping global tariffs.
Analysts have warned that Dubai’s property sector now faces more risks going forward. High net worth individuals from around the world could pull back amid market uncertainties. Falling oil prices could also cause Gulf economies to slow.
The first-quarter numbers reflected “continued appetite from global UHNWIs seeking one-of-a-kind trophy homes,” said Faisal Durrani, head of Middle East research at Knight Frank. Still, Durrani said there was a risk the recent upheaval in global assets would affect Dubai real estate.
“It’s too early to tell, but one of the things we do need to keep an eye on is sentiment,” said Durrani. “There’s always the risk of contagion, of negative sentiment, which is something that can’t be controlled internally.”
Demand for Dubai property has boomed since 2020 as the government’s handling of the pandemic and its liberal visa policies attracted scores of foreign buyers. The luxury end of the emirate’s real-estate market — including waterfront villas on the city’s man-made palm-shaped islands — has benefitted from an influx of wealthy expats.
In the first quarter, the artificial island of Palm Jumeirah remained one of the most popular locations, recording 34 transactions of homes priced over $10 million for a combined value of $562.8 million, Knight Frank said. Listings of luxury homes have dropped sharply last year, with a 48% decline in the number of properties valued at more than 50 million dirhams placed on offer.
Going forward, Durrani said the impact of tariffs on supply chains for raw materials used in construction is another area of concern.
“What is the potential impact, if any, on planned supply? Are we going to be able to meet those targets or is it going to hamper deliveries, which may not necessarily be a bad thing anyway?,” he said.