Surge in Global Wealth Fuels Middle East Luxury Real Estate Boom
The Middle East is witnessing a remarkable influx of wealth, as high net worth individuals (HNWIs) and ultra high net worth individuals (UHNWIs) increasingly set their sights on the region, particularly the UAE. Dubai, in particular, has emerged as a magnet for affluent investors, transforming into one of the world’s top luxury property destinations.
According to the latest Private Capital Report, the UAE’s millionaire population has nearly doubled over the past decade, rising by a staggering 98%. The World’s Wealthiest Cities Report 2025, conducted by New World Wealth for Henley & Partners shows that as of 2024 and with the wealth calculated in dollars, Dubai is home to 81,200 millionaires. The year before that, there were 72,500 millionaires living in Dubai.
This rise in wealth is closely linked to the UAE’s stable political climate, forward thinking economic reforms, and investor friendly policies. Research from Henley & Partners points to the UAE’s tax advantages, premium lifestyle offerings, and visionary leadership as key factors behind this surge.
The majority of these new arrivals hail from India (31%), followed by the Middle East (20%), Russia and the CIS (14%), and Europe including the UK (12%), highlighting Dubai’s global appeal amid geopolitical and economic uncertainty elsewhere.
This wealth migration is reshaping the real estate landscape. Dubai now outpaces traditional luxury markets like London and New York in ultra prime home sales. In 2024, the city recorded 435 transactions of properties priced at $10 million or more, narrowly exceeding the 434 deals in 2023. Q4 2024 alone saw 153 such sales, setting a new quarterly record.
Momentum carried into 2025, with 111 ultra luxury homes sold in Q1, the highest figure ever for the first quarter and a 5.7% increase year on year.
Leading this boom is the iconic Palm Jumeirah, which accounted for 34 sales totaling $562.8 million in Q1 2025. Emirates Hills followed, notching 15 sales worth $356.7 million. Among them was a six bedroom villa that sold for $106.3 million, up from just $6.6 million in 2015, reflecting an astounding 1,635% increase in value.
In total, Dubai’s residential market logged nearly 170,000 transactions in 2024, with a combined value of around $115 billion. Properties priced at $10 million or more accounted for approximately 6% of the total market value.
Investor preferences are heavily shaped by wealth tiers. Among those with net worths exceeding $15 million, 78% are considering a home in Dubai. GCC based HNWIs have an average purchase budget of $3.1 million, while a quarter of UHNWIs are prepared to spend between $60 million and $80 million. Another 16% are exploring options priced above $80 million.
With an estimated $84 trillion set to pass between generations globally over the next 20 years, the Middle East is already seeing this trend unfold. In Saudi Arabia, many family owned businesses are transitioning to third generation leadership, with Dubai and Abu Dhabi becoming favored locations for trusts and cross border wealth management.
Source : Khaleej Times
