Soaring Demand for Ultra-Luxury Villas in Dubai as Sales Surge

Soaring Demand for Ultra-Luxury Villas in Dubai as Sales Surge

Source: BNR Nieuwsradio / ANP

Sales of ultra-luxury properties in Dubai have seen a significant rise, despite recent regional unrest caused by Israeli-American attacks on Iran and trade tensions sparked by President Donald Trump. According to real estate consultancy Knight Frank, transactions of properties priced over USD 10 million reached USD 2.6 billion between April and June. This marks a 37% increase compared to the first quarter and a 63% rise compared to the same period last year.

A total of 143 high-end transactions were recorded during the quarter—more than 50% higher than the year before. This included 80 apartments and 63 villas or detached homes, with 22 of those sold for over USD 25 million.

Escalation Concerns

Real estate agents had previously reported that fears of a potential escalation of the conflict surrounding Iran had briefly brought Dubai’s property market to a near standstill. However, the latest figures suggest that buyer interest remained largely unaffected. On average, prices in ten of Dubai’s most exclusive neighbourhoods rose by 18% year-on-year. Knight Frank described the market as exhibiting "healthy activity" in its latest report.

Since 2020, demand for real estate in Dubai has skyrocketed. This is partly due to the country’s liberal visa policies. In addition, Dubai continues to see large-scale development, offering a broad selection of luxurious properties, including waterfront villas on the city's iconic man-made palm-shaped islands.

Experts caution, however, that there are risks involved following a roughly 70% price increase over the past four years. Fitch Ratings, for instance, predicts a “moderate correction” starting later this year, pointing to a wave of new supply that could place downward pressure on prices.