Dubai’s luxury real estate market is experiencing an unprecedented surge, driven by a significant influx of high-net-worth individuals (HNWIs) choosing the UAE as their new domicile. A recent report by property consultancy giant Knight Frank reveals that this “wealth migration wave” is directly translating into record-breaking property transactions, particularly in the ultra-prime segment. Is Dubai solidifying its position as the world’s ultimate playground for the wealthy?
The Knight Frank Private Capital Report highlights a staggering 7,200 millionaires flocked to the UAE in 2024, a remarkable 53% increase compared to the previous year. This influx has boosted the total number of resident HNWIs in the country to 130,500, positioning the UAE as the 14th wealthiest market globally. Interestingly, the number of dollar millionaires in the UAE has almost doubled in the past decade, making it the second-fastest-growing wealth market worldwide.
Dominic Volek, Head of Private Clients at Henley & Partners, notes the significance of this trend, stating that with a record-breaking 142,000 millionaires forecast to relocate globally in 2025, the UAE is poised to capture a substantial share, strengthening its status as a global wealth hub.
This substantial influx of wealth is having a direct and profound impact on the UAE’s luxury property market, especially in Dubai. The report indicates that Dubai has been the most active market globally for sales of homes priced at $10 million and above for the past two years, eclipsing even established markets like London and New York. In 2024 alone, Dubai registered an astounding 435 sales of properties exceeding $10 million, slightly surpassing the 434 transactions recorded in 2023. This momentum continued into the first quarter of 2025, with a record 111 such sales, marking a 5.7% year-on-year increase and setting the market on track for another record year.
Faisal Durrani, Partner and Head of Research for the Middle East and North Africa (MENA) at Knight Frank, emphasizes the unparalleled demand from international buyers, stating that Dubai’s luxury residential market continues to “defy gravity.” In 2024, Dubai not only led the world in the number of $10 million-plus home sales but also topped the total transaction value, reaching $7.1 billion, surpassing legacy markets like New York, London, and Hong Kong.
The Palm Jumeirah remains Dubai’s most coveted ultra-prime location, recording 34 sales above $10 million in Q1 2025, with a combined value of $562.8 million. Emirates Hills followed in second place with 15 sales totaling $356.7 million.
Nicholas Spencer, Partner and Head of Private Capital and Family Enterprises for MENA at Knight Frank, highlights Dubai’s successful transition into a primary destination for HNWIs seeking real estate for both personal use and investment, with a distinct focus from the global elite on making the city a permanent base or a second home. This trend suggests a sustained demand for luxury properties in the UAE, further solidifying its position on the global stage.
Summary:
- A Knight Frank report indicates that significant wealth growth and the influx of over 7,000 millionaires in 2024 are driving record real estate transactions in the UAE, particularly in Dubai’s luxury segment.
- Dubai has become the top global market for sales of homes priced above $10 million, surpassing London and New York.
- The Palm Jumeirah remains the most sought-after ultra-prime location.
- The trend of wealthy individuals choosing the UAE as a permanent or second home is expected to continue driving demand in the luxury property market.