Dubai Sees Record USD 2.6 Billion Luxury Home Sales in Q2 2025

Dubai’s high-end real estate market remained resilient in Q2 2025, recording a sharp 63% year-on-year increase in sales of properties above USD 10 million, totaling USD 2.6 billion, according to Knight Frank. This marked a 37% jump from the previous quarter and occurred despite regional conflict and global tariff disruptions.

The quarter recorded 143 ultra-luxury deals, a 52 percent increase from last year's same period, with 22 sales over USD 25 million. Knight Frank reported price appreciation was tame — average prices in 10 prime luxury neighborhoods increased 18 percent  year-over-year but were unchanged from Q1 — indicating "increasing sales volumes and a solid market environment, rather than cost inflation, lie behind the rise in total sales value."

Key Highlights-

• Dubai luxury home sales hit USD 2.6 billion in Q2 2025
• 143 high-end deals closed, including 22 above USD 25 million
• Apartment sales surpassed villas in ultra-luxury segment

For the first time since Q2 2023, sales of luxury apartments (80 units) overtook those of villas and single-family homes (63 units). The shift highlights growing demand for high-rise living among Dubai’s wealthy buyers.

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The robust sales performance came in spite of challenges thrown by present market, including the 12-day Israel-Iran conflict and a wave of global tariffs announced by U.S. President Donald Trump, both of which briefly stalled Dubai’s property activity.

Demand has picked up since 2020 due to the UAE's response to the pandemic and the liberalization of visa policies. Yet, experts like Fitch Ratings predict a possible "moderate correction" in the later part of 2025, as supply increases.

Nonetheless, long-term investors seem to rule the roost: just 5% of houses were turned over inside 12 months, a far cry from 25% in 2008.