AEngel & Völkers Middle East’s latest market review confirms what many industry watchers suspected: Dubai’s prestige real‑estate sector is accelerating at a pace few global hubs can match.
In the first six months of 2025, the city registered 3,731 transactions priced above AED 10 million, a 62.7 percent year‑on‑year leap. Q2 alone delivered 2,388 such deals—the strongest quarterly tally ever. Ultra‑prime property now represents just over 4 percent of all market activity, up from 1.1 percent in 2020, signalling a structural shift in Dubai’s residential landscape.
Headline sales illustrate the trend: an AED 425 million home in Emirates Hills and a AED 300 million beachfront villa on Palm Jumeirah ranked among the top trades in H1.
Brokerage Performance Mirrors Market Momentum
Engel & Völkers Middle East posted a 48 percent rise in closed deals and a 40 percent gain in net commission income during H1 2025, fuelled by lively demand across luxury and upper‑mid tiers. The brokerage also notes a change in buyer origin: Indian purchasers now lead the table, trailed by clients from Germany, the UK and Portugal. Activity from Spain, Austria and the Netherlands is also gathering speed—countries where the brand already enjoys strong networks, allowing for seamless cross‑border service.
“Dubai has evolved from a speculative hotspot into a long‑term home for the global elite,” says Daniel Hadi, CEO, Engel & Völkers Middle East. “With AED 10 million‑plus deals up more than 60 percent, high‑end property is no longer a niche—it defines Dubai’s identity.”
Macro Tailwinds Sustain Demand
Dubai’s population is on course to surpass 4 million residents in 2025, its fastest growth since 2018 (Dubai Statistics Centre). Consultancy Henley & Partners forecasts the UAE will welcome 9,800 new millionaires this year—more than any other nation. Add favourable tax policies, world‑class infrastructure and geopolitical neutrality, and the emirate’s appeal to global capital becomes clear.
Broader Market Trends
- Overall residential transactions jumped 22.7 percent YoY in H1 2025, now more than six times higher than H1 2020 levels.
- Off‑plan sales climbed 19.9 percent to 54,742 deals, led by hotspots such as Jumeirah Village Circle and Business Bay.
- Secondary‑market activity surged 26.8 percent to 38,168 transactions, with apartments in Dubai Marina, Downtown and MBR City drawing the most interest.
- Villa sales advanced 27.6 percent by volume and 53.5 percent by value (to AED 78.3 billion). New districts—The Oasis, Grand Polo Club and The Valley—saw notable momentum.
- Townhouses posted the fastest growth: volumes up 57.4 percent and value up 64.7 percent to AED 42 billion, thanks to popular launches in Damac Islands, Damac Hills 2 and The Valley.
Outlook
Engel & Völkers Middle East anticipates continued buoyancy through year‑end. The recently launched First Home Buyer Programme, supported by major developers and UAE banks, should entice renters to step onto the ownership ladder. Structural advantages—tech‑friendly policies, robust digital infrastructure, and a diversified economy—are expected to cushion Dubai from external economic shocks.
“With no meaningful oversupply on the horizon and demand firing on all cylinders, Dubai’s residential market remains on an upward path,” Hadi concludes. “Our role is to partner with discerning buyers and investors as the city’s next chapter unfolds.”
About Engel & Völkers
For more than 45 years, Engel & Völkers has specialised in brokering premium residential and commercial real estate, yachts and aircraft. Over 16,700 professionals operate under the brand across 35 countries on five continents. Continuous training via the company’s in‑house academy and an emphasis on digital innovation underpin its global success.
About Engel & Völkers Middle East
Established in 2014 and headquartered in Dubai, the regional arm employs 200+ specialised advisors covering luxury homes, commercial assets and private‑office clientele. A dedicated commercial division offers access to office, industrial and investment property across the emirate.
