Dubai's luxury property sales continue record-setting streak
Sales of homes priced above US$10 million surged to US$2.6 billion between April and June, according to researcher Knight Frank. The figure marks a 37 per cent increase from the first quarter and a 63 per cent rise compared to the same period last year.
A total of 143 transactions were recorded in the quarter, up 52 per cent year over year, including 22 sales above the US$25 million mark.
The market's strength came despite the 12-day war between Israel and Iran, which eventually drew in the US. Fears of escalation briefly brought Dubai's property market to a near standstill, brokers told Bloomberg News. The quarter was also marked by sweeping tariffs announced by US President Donald Trump that rattled global markets.
On average, prices across 10 luxury neighbourhoods rose 18 per cent from a year ago but remained nearly unchanged from the first quarter.
'This indicates that rising sales volumes and healthy market activity, as opposed to cost inflation, underlie the growth in total sales value,' the report said.
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In the US$10 million-and-above category, apartment sales outpaced villas for the first time since the second quarter of 2023. A total of 80 apartments were sold, compared to 63 villas or single-family homes.
Demand for Dubai property has boomed since 2020, driven by the government's handling of the pandemic and liberal visa policies that attracted foreign buyers. The luxury end of the emirate's real estate market, including waterfront villas on the city's artificial palm-shaped islands, has benefited from an influx of wealthy expatriates.
To be sure, analysts have started to warn that city-wide property prices face multiple risks after rising by about 70 per cent over the past four years. Fitch Ratings, for one, forecasts a 'moderate correction' in late 2025 into 2026, citing a wave of new supply.
That said, the share of homes resold within 12 months of purchase fell to around 5 per cent in the second quarter, down from as high as 25 per cent in 2008, according to Knight Frank. The shift underscores a change in the buyer mix, with most investors now holding on to properties rather than flipping them. BLOOMBERG
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