Buyers of $1 Mn Priced Properties in Dubai Become Accidental Millionaires

Dubai’s real estate market continues its meteoric ascent, transforming 37,000 homeowners into “accidental millionaires” as properties once purchased under $1 million now exceed the mark purely due to inflation-driven gains. This reflects the city’s widening appeal among high-net-worth individuals and its evolution as a global luxury hub.

According to Knight Frank, sales of homes priced above $10 million hit a new peak of $2.6 billion in Q2 2025—a 63% jump from the same period last year. Apartments outpaced villas for the first time since 2023, signaling a shift in buyer preferences. The Palm Jumeirah led the charge with 28 transactions, followed by La Mer and Downtown Dubai.

Dubai’s Prime Index averaged Dh3,850 per square foot, up 18% year-on-year, suggesting that surging demand—rather than cost inflation—is driving record sales. Notably, the emirate retained its title as the world’s busiest market for $10 million+ home sales, rivaling London and New York.

Beyond luxury ownership, Knight Frank’s data revealed that nearly 18% of Dubai’s 624,000 residential units are now valued at over $1 million. Of these, approximately 21,000 are part of a thriving buy-to-let market—another indicator of long-term investor confidence.

Yet, while demand grows, supply continues to lag. Dubai welcomed 170,000 new residents last year, but only added 30,000 housing units, creating a supply gap—especially in the ultra-luxury tier. Listings in the $25 million+ bracket dropped by 85% last year, making prime real estate increasingly scarce.

Analysts believe this shortage, coupled with the city's maturing residential market, signals a strategic pivot: high-net-worth individuals are holding properties longer as primary residences or second homes, reinforcing Dubai’s reputation not just as a business hub, but a lifestyle haven.