How off-plan demand, waterfront scale, and global wealth flows shaped a record year

Dubai’s ultra-luxury residential market closed 2025 with numbers that few global cities can match. A total of 2,489 homes priced above AED 20 million changed hands during the year. These transactions reflect more than volume. They show where ultra-high-net-worth buyers are placing long-term confidence and how preferences are shifting across the city.

This article explains what drove demand in 2025, which locations led the market, why off-plan homes dominated activity, and what buyers and investors should expect as the market moves into 2026.

A clear snapshot of the 2025 ultra-luxury market

Dubai recorded 2,489 ultra-luxury transactions above AED 20 million in 2025. Together, these deals underline the city’s role as a preferred base for global wealth.

One trend stands out. Off-plan properties sales accounted for 64 percent of these deals, while ready properties made up 36 percent. Buyers are showing confidence not only in Dubai today, but in where the city is heading over the next five to ten years.

This shift matters. Ultra-luxury buyers usually take a cautious view of off-plan risk. Their willingness to commit early signals trust in master planning, infrastructure delivery, and future resale value.

Why off-plan dominated ultra-luxury sales

Off-plan dominance is not driven by pricing alone. Several practical factors explain why high-value buyers leaned toward new developments in 2025.

Large master communities now offer features that older stock cannot replicate. These include wider waterfront plots, lower density, private beaches, and stricter architectural control. Buyers are also drawn to payment structures that spread capital over time without relying on bank leverage.

Another factor is scarcity. Many prime areas have limited land left for large villas or signature homes. Off-plan launches provide access to rare formats that will not return once fully built.

Palm Jebel Ali leads the ultra-luxury market

Palm Jebel Ali emerged as the strongest ultra-luxury location of 2025 by a wide margin.

The area accounted for 21 percent of all transactions above AED 20 million. A total of 517 ultra-luxury homes were sold, generating AED 12.4 billion in value. No other location came close on this scale.

The appeal of new projects in Palm Jebel Ali lies in their size and structure. These include long beachfront lots, large villa plots, and master plans designed for privacy. For UHNW buyers, these factors are as important as headline pricing.

Buyer interest is not theoretical. There are five villa sales worth over AED 143 million within the community. This points to deep demand rather than isolated deals.

The Oasis takes second place

The Oasis ranked second in 2025, capturing 12 percent of ultra-luxury transactions with 307 deals.

Like Palm Jebel Ali, The Oasis is driven entirely by off-plan activity. Buyers here are focused on long-term value, controlled design standards, and lower density. The community’s planning appeals to families and investors seeking quiet, gated environments rather than high-rise living.

Its rise also shows how demand is spreading beyond legacy prime areas into newer districts with scale.

Palm Jumeirah remains the benchmark for ready homes

Palm Jumeirah placed third with 273 ultra-luxury transactions in 2025. While it no longer leads by volume, it holds a different position in the market.

Palm Jumeirah remains the top location for ready ultra-luxury homes. Buyers who want immediate occupancy, proven rental demand, and established lifestyle options continue to focus here.

Unlike emerging areas, Palm Jumeirah offers certainty. Schools, dining, beach clubs, and access routes are already in place. This explains why it attracts end users and rental investors even at higher entry prices.

Other high-performing ultra-luxury districts

Beyond the top three, several locations recorded strong ultra-luxury activity in 2025.

These include Dubai Hills Estate, Mohammed Bin Rashid City, Jumeirah, and Downtown Dubai.

While their total deal counts were lower, they continue to attract buyers looking for established addresses, golf views, or central access.

The year’s biggest single transaction

One deal in 2025 stood apart from the rest.

In Business Bay, a billionaire sky mansion at Bugatti Residences by Binghatti sold for AED 550 million.

This sale confirms that Dubai’s market can absorb rare trophy assets at the very top end. It also shows how branded residences, when executed well, can command global attention and pricing.

What buyer behaviour tells us

The 2025 data shows a clear shift in buyer priorities.

Ultra-high-net-worth clients are moving toward large-scale waterfront communities with strong planning and future depth. Privacy, plot size, and long-term value matter more than proximity to historic prime zones.

At the same time, established locations retain strength where ready stock is limited and quality is proven. This balance between new and mature areas reflects a healthier market structure.

Market outlook for 2026 and beyond

Looking ahead, the ultra-luxury segment is expected to continue growing in Dubai.

Following record activity in 2025, sales and rental transactions are forecast to rise by 10 to 20 percent year on year. Supply of true ultra-prime villas, beachfront homes, and signature penthouses remains limited.

New inflows of UHNW residents are also expected to continue. Many buyers are relocating capital and family bases rather than making short-term investments. This supports both sales and premium rental demand.

Which locations are set to benefit next

Established prestige areas such as Palm Jumeirah, Emirates Hills, and Dubai Hills Estate are likely to remain core ultra-luxury markets.

At the same time, emerging destinations like Palm Jebel Ali and The Oasis are gaining traction as Dubai expands south and west. These areas offer what many UHNW buyers value most: space, privacy, and scale.

Rising standards in the rental market

The ultra-luxury rental segment is also changing.

Tenants are becoming more selective. Fully upgraded, turnkey homes now command clear premiums. Properties with dated layouts or average finishes are facing longer vacancy periods, even in prime areas.

For investors, this shift places greater focus on design quality and execution rather than location alone.

Why global wealth continues to choose Dubai

Dubai’s appeal to ultra-high-net-worth individuals is not slowing.

Global uncertainty elsewhere continues to push wealth toward stable and business-friendly cities. Dubai combines a low-tax framework, strong legal structures, international connectivity, and a growing supply of ultra-prime housing.

These fundamentals support sustained demand well beyond 2026. For buyers at the top end, Dubai is no longer a short-term trade. It is a long-term base.

Final take

Dubai’s ultra-luxury property market in 2025 showed depth, scale, and direction. Off-plan confidence, strong waterfront demand, and record transaction values point to a market that has matured.

For UHNW buyers and investors, the message is clear. Dubai offers both established certainty and future growth, backed by real demand and limited supply at the very top.