The Gulf Stream: Dubai's real estate heats up as global buyers move in

With Dubai’s Superyacht Golden Visa attracting more global buyers, the emirate’s prime real estate market is hotter than ever. Ruth Bloomfield explores how luxury developments, marina-side homes and lifestyle investments are reshaping this desert metropolis into a true global hub...

When Dubai began its exponential rise towards the premier league of global property hotspots, it had two selling points: low tax and year-round sunshine.

Today the biggest city in the United Arab Emirates has added new strings to its bow in an attempt to be taken seriously as a place the
ultra-rich might wish to call home. Its properties are becoming ever-more luxurious and its lifestyle is evolving with an impressive range of sporting and cultural venues and events, plus outposts of some of the world’s most famous schools and hospitals.

Dubai’s latest attempt to seduce the world’s wealthiest was unveiled in January. The Dubai Superyacht Golden Visa scheme offers renewable long-term residency to owners with private yachts measuring 40 metres or more. The scheme was set up to boost Dubai’s marine economy and appears to be benefiting its luxury property market too.

“We’re seeing a notable increase in interest around branded waterfront developments and marina-adjacent homes,” said Petri Mannila, partner and head of prime residential, UAE, at Knight Frank estate agents.

This interest should help keep prices in Dubai – officially the world’s fastest growing luxury property hub – buoyant.

According to the latest research from Savills, Dubai enjoyed a “remarkable” 2024 with 47 per cent more transactions than in 2023. Average  sale prices increased by 6.8 per cent, and almost one in five sales were villas or town houses. This year, Savills expects Dubai to enjoy prime price growth of eight to 9.9 per cent.

Part of the reason for optimism is that right now Dubai is appealingly affordable. It has its share of £100 million-plus super-houses, but its average prime price stands at £7,459 per square metre, around half the average price of London or Paris.

A two-bedroom apartment at the Six Senses Residences in Palm Jumeirah, a palm tree-shaped network of fabricated islands built just off the coast of Dubai, could be yours for £4.08 million or £10,764 per square metre. Meanwhile in London, buyers have paid £75,347 to £96,875 per square metre for homes in top drawer developments like 20 Grosvenor Square or One Hyde Park.

Then there is an ongoing imbalance in demand for upscale new homes versus supply. Last year, said Mannila, just 16 villas priced at AED53,820 (£10,909) per square metre or more were completed. “Demand is vastly outpacing delivery, which continues to drive upward pressure on prices,” he says. “Trophy properties with marina access or waterfront positioning will command a premium, and branded residences will continue to outperform.”

The other key reason for confidence in Dubai’s property market is its increasing allure as a location for a main home rather than a holiday crash pad.

“The lifestyle is thriving,” says Andrew Cummings, head of residential agency for Savills Middle East. “You have got good weather, every amenity under the sun and it is one of the safest places in the world. Five years ago, everyone talked about tax. Now it’s only an ancillary benefit.”

Mannila sees a similar pattern with his buyers, who tend to have two things in common: wealth and relative youth. Most are aged between 35 and 55 and form an international crew from India, the Middle East, Russia, Europe and North America. “They’re not just buying property – they’re choosing Dubai as a long-term base, with an eye on lifestyle infrastructure, fiscal efficiency and legacy planning,” says Mannila.

In Cummings’ view, the most prestigious places to buy a property are Jumeirah Bay Island, shaped like a seahorse and accessible to the mainland by bridge, and Emirates Hills – a gated collection of massive villas just inland from Dubai Marina – which is often described as Dubai’s answer to Beverly Hills. The smallest properties, said Cummings, measure approximately 929 square metres; the largest 5,574 square metres.

Cummings’ tip for buyers looking for a smart investment is to purchase property in a high-quality development like Tilal Al Ghaf or Eden Hill. “Buying off plan really works,” he says. “By the time the property is completed, they will get some really good capital gains.”

Other new developments include The Wilds, a sustainable project of almost 1,700 homes amongst woodland, ponds and wildlife habitats, around 21 kilometres from the coast. Sports facilities, from padel courts to cycling trails, are plentiful. Five-bedroom villas are priced at AED11.4 million (£2.3 million).

Off-plan purchases only work if Dubai’s prices keep growing, of course. Cummings thinks they will. “Dubai has transitioned from a developing location to a truly mature location, and what is being delivered is world-class in nature,” he says. “The line for Dubai is diagonal and up to the right.”

Daniel Hadi, CEO of Engel & Völkers Middle East, agrees that strong demand and a lack of prime and super-prime homes should guarantee continued price growth, for the time being at least. “As the market matures, we expect the trajectory to become more sustainable,” he explains. “The imbalance between demand and availability will likely ease in late 2025 and into 2026, with an expected increase in new inventory. While this is likely to moderate the pace of price growth, the outlook for continued growth remains highly positive.”

First published in the September 2025 issue of BOAT International. Get this magazine sent straight to your door, or subscribe and never miss an issue.