The boom in the luxury real estate market in Dubai has reached a new record: sales have increased by 5.7%
Kyiv • UNN
In the first quarter of 2025, 111 luxury homes worth $1.9 billion were sold in Dubai. Analysts fear that global instability may affect the market.
The boom in the luxury real estate market in Dubai continued in the first quarter of this year, and wealthy buyers again became leaders in the purchase of homes worth over $10 million, Bloomberg reports, writes UNN.
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According to research company Knight Frank, in the first three months of 2025, 111 houses with a total value of $1.9 billion were sold, which is 5.7% more than in the same period last year. According to the broker, 12 houses worth $25 million or more were sold in the first quarter.
The jump in sales shows that Dubai's real estate market continued to grow in the months leading up to the global turmoil in April after US President Donald Trump announced the introduction of global tariffs.
Analysts warn that Dubai's real estate sector now faces greater risks in the future. Wealthy individuals from around the world may retreat amid market uncertainty. A fall in oil prices could also lead to a slowdown in the economies of the Gulf countries.
The figures for the first quarter reflect "the continued appetite from global UHNWIs looking for unique trophy homes," said Faisal Durrani, Head of Middle East Research at Knight Frank. Nevertheless, Durrani said that there is a risk that recent turmoil in global assets will affect real estate in Dubai.
"It's too early to say, but one of the things we need to keep an eye on is sentiment," Durrani said. "There is always a risk of "infection", negative sentiments that cannot be controlled from within."
Demand for real estate in Dubai has risen sharply since 2020, amid government measures to combat the pandemic and its liberal visa policy, which have attracted many foreign buyers. The emirate's luxury real estate segment, including waterfront villas on artificial palm-shaped islands, has benefited from an influx of wealthy expats.
In the first quarter, the artificial island of Palm Jumeirah remained one of the most popular places, with 34 deals for houses worth more than $10 million totaling $562.8 million, according to Knight Frank. Last year, the number of luxury home offers fell sharply, with the number of properties worth more than 50 million dirhams put up for sale falling by 48%.
Durrani said that in the future, another area of concern is the impact of duties on supply chains of raw materials used in construction.
"What is the potential impact, if any, on planned deliveries? Will we be able to achieve these goals or will this make deliveries difficult, which is not necessarily bad anyway?" he said.