Doha: Dubai’s ultra-luxury real estate sector is set to continue its robust growth trajectory in 2025, fuelled by strong demand, limited supply, and a steady influx of high-net-worth individuals (HNWIs), a new market study says.
Over the last ten years, sales of luxury Dubai villas and apartments valued above AED15m have risen dramatically, reaching AED71bn in 2024 for the second year in a row, an increase of almost 688% since 2015.
However, while just over 326,000 are properties currently under construction in Dubai, a fäm Properties report today reveals a clear picture of the limited number of luxury or ultra-luxury properties that will enter the market over the next two to three years.
It says a scarcity of ready properties in particular, amid keen buyer and investor interest, will support continued price growth in 2025.
The latest data from DXBinteract,shows that only 16,500 units being built are in the luxury or ultra-luxury sectors as follows: AED5-10m: 10,209 units; AED10-15m: 2,360 units; AED15-30m: 2,831 units; AED30-60m: 809 units; AED60+ million: 330 units.
In addition, the vast majority of these are a long way from completion, with 72% in the 0-20% range in terms of construction progress.
“These figures underscore a restricted supply of ultra-luxury properties, indicating a highly exclusive and limited market, with demand expected to stay strong for at least the next two to three years,” said Firas Al Msaddi (pictured), CEO of fäm Properties.
“Beyond that, the balance of supply and demand will depend on how new projects are received. But if the forecasted inflow of around 6,500 HNWIs per year holds true through 2024-2026, we’re likely to experience steady demand, supporting price appreciation.”
