Dubai, UAE – Dubai’s ultra-luxury real estate sector is set to sustain its remarkable growth in 2025, driven by a combination of strong demand, limited supply, and a steady influx of high-net-worth individuals (HNWIs), according to a new market study by fäm Properties.
Surging Sales and Limited Supply
Over the past decade, sales of luxury villas and apartments in Dubai valued above AED 15 million have seen a dramatic rise, reaching AED 71 billion in 2024 for the second consecutive year—an increase of nearly 688% since 2015.
Despite more than 326,000 properties currently under construction in Dubai, the ultra-luxury market remains constrained. A report from fäm Properties highlights the scarcity of high-end properties, with only 16,500 units under development in the luxury and ultra-luxury sectors:
- AED 5-10 million: 10,209 units
- AED 10-15 million: 2,360 units
- AED 15-30 million: 2,831 units
- AED 30-60 million: 809 units
- AED 60+ million: 330 units
Additionally, 72% of these units are still in the early stages of construction (0-20% completion), further tightening supply and maintaining upward pressure on prices.
Strong Demand and Future Outlook
Firas Al Msaddi, CEO of fäm Properties, noted that the restricted availability of ultra-luxury properties ensures continued exclusivity in this segment. “These figures underscore a highly limited market, with demand expected to remain strong for at least the next two to three years. Beyond that, the supply-demand balance will depend on how new projects are received. However, with an anticipated influx of 6,500 HNWIs per year from 2024 to 2026, we expect sustained demand and price appreciation.”
Developers Target High Sales Goals
Fäm Properties is gearing up for a robust year, with its luxury division, fäm Lux, targeting AED 10 billion in sales transactions for 2025. Meanwhile, Nordic by fäm, the group’s boutique developer specializing in bespoke ultra-luxury villas, expects to achieve AED 1 billion in sales from completed properties.
Market Trends: Villas in Short Supply, Apartments in High Demand
Prime locations such as Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills face a critically low supply of ultra-luxury villas, keeping demand consistently high. In the apartment sector, ready ultra-luxury units remain in high demand, pushing prices up as buyers prioritize branded residences with true luxury elements.
Supply and demand for resale apartments are relatively balanced, with growing options in developments nearing completion. However, demand remains high for off-plan branded apartments, with developers such as Sobha, Emaar, and DAMAC leading the sector.
Evolving Buyer Preferences
Absorption rates for newly launched branded residences have adjusted due to greater supply, making instant sell-outs harder to achieve compared to previous years. For instance, fäm Properties once secured AED 1 billion worth of bookings for the Bvlgari Lighthouse within 24 hours—a feat now harder to replicate due to increased options.
A growing trend among ultra-luxury buyers is the preference for boutique, limited-supply developments, which maintain higher exclusivity and command premium prices. Additionally, off-plan projects partnered with global luxury brands are drawing international investors, adding unique value to Dubai’s high-end property market.
Conclusion: A Booming Market with Strategic Growth
Despite market shifts, Dubai’s ultra-luxury real estate sector remains fundamentally strong. Al Msaddi emphasized that developers and investors can thrive with careful planning, unique designs, and exclusive offerings. As demand continues to rise, the sector is expected to maintain its appeal as a prime global investment destination in 2025.
