Dubai’s ultra luxury property market extended its record-breaking rally in 2025, with Palm Jebel Ali overtaking Palm Jumeirah as the emirate’s most sought-after enclave for homes priced above Dh20 million, underscoring the city’s growing magnetism for global wealth and long-term capital.
A total of 2,489 homes valued at more than Dh20 million changed hands during the year, reflecting sustained demand from ultra-high-net-worth individuals seeking trophy assets, waterfront living and tax-efficient wealth preservation, according to data compiled by Penthouse.ae and Property Monitor. Off-plan homes dominated transactions, accounting for 64 per cent, or 1,604 deals, compared with 885 ready-property sales, signalling strong investor confidence in Dubai’s next generation of luxury master developments.
Palm Jebel Ali emerged as the standout performer, accounting for 21 per cent of all ultra-luxury transactions. The waterfront district recorded 517 deals above Dh20 million, generating Dh12.4 billion in sales — the highest among all prime locations in Dubai. Agents say the scale of demand reflects a shift by global investors toward larger waterfront villas offering privacy, space and long-term capital appreciation.
A single brokerage reported selling five villas worth more than Dh143 million in the community, highlighting the depth of appetite among high-net-worth buyers.
The surge comes against the backdrop of a broader boom in Dubai’s luxury real estate sector, which has outperformed most global prime markets for a third consecutive year.
According to Knight Frank, Dubai recorded the highest number of $10 million-plus home sales globally in 2025, ahead of London and New York, as wealthy investors from Europe, Asia and the CIS continued to shift capital into the emirate. The consultancy noted that Dubai’s prime residential prices have more than doubled since 2020, supported by population growth, residency reforms and sustained economic expansion.
“Dubai remains firmly positioned as one of the world’s most attractive destinations for global wealth,” Knight Frank said in a recent market update, citing strong demand for beachfront villas and branded residences. The firm expects continued momentum in 2026 as supply of ultra-prime homes remains limited relative to demand.
Data from the Dubai Land Department show total real estate transactions crossed Dh760 billion in 2025, a record high, with the luxury and ultra-luxury segments accounting for a growing share of value.
Savills said in a recent report that Dubai’s combination of zero income tax, political stability and investor-friendly visa policies continues to drive inflows of high-net-worth buyers seeking both lifestyle and safe-haven investments. “Dubai’s luxury residential market remains in expansion mode, supported by strong international demand and limited supply of prime waterfront homes,” the consultancy said.
Analysts say the rise of Palm Jebel Ali as a preferred ultra-prime address reflects both its scale and the scarcity of new beachfront inventory elsewhere in Dubai.
With larger plots, modern infrastructure and master-planned amenities, the development is increasingly attracting global investors looking beyond traditional prime areas.
With new ultra-luxury launches lined up and demand from international buyers showing little sign of easing, market experts expect Dubai’s top-end property segment to remain one of the world’s most dynamic real estate investment destinations through 2026 and beyond.
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Source: Khaleej Times
10th February 2026
