Why Dubai Is Now the World’s Capital of Ultra-Luxury Real Estate

Dubai has once again confirmed its position as the world’s most powerful magnet for ultra-high-net-worth property buyers.

New data from Knight Frank reveals that the emirate recorded more $10 million-plus home sales than any other city in the final quarter of 2025, further widening the gap between Dubai and long-established luxury strongholds.

Across 12 major global markets tracked by the brokerage, 555 homes sold for at least $10 million during Q4, representing a 17 per cent increase on the previous quarter. Collectively, those transactions reached approximately $10.3 billion in value, with the average sale price rising to $18.6 million. In short: more trophy homes, changing hands faster, at higher prices.

Dubai led the charge by a significant margin.

The city recorded 143 super-prime transactions in just three months, with a combined value of $2.5 billion. That marked a 39 per cent increase in deal volume quarter-on-quarter, alongside a 27 per cent rise in total value. Over the past 12 months alone, Dubai has seen 500 ultra-luxury homes sell, more than three times the total recorded in London during the same period.

According to Knight Frank, the surge reflects a decisive re-routing of global wealth. Buyers are increasingly prioritising low-tax jurisdictions, lifestyle-led living and political and economic stabilit, criteria that Dubai now meets with ease.

World-class infrastructure, new-build supply at the very top end, and a maturing luxury ecosystem have helped the emirate evolve from a fast-growing market into a fully-fledged global safe haven for wealth.

“Two stories stood out this quarter,” said Liam Bailey, Global Head of Research at Knight Frank. “First, Dubai’s record year capped a powerful multi-year run of wealth inflows and super-prime new-build delivery. Second, London’s fall to seventh place underscores how tax reform has weighed heavily on trading in the super-prime market.”

Elsewhere, Hong Kong climbed into second place with 81 $10 million-plus transactions worth $1.57 billion, extending a rebound that suggests renewed confidence at the very top of the market. In the US, New York City and Los Angeles followed with 57 and 63 sales respectively, though both saw modest softening towards year-end as inventory tightened and seasonal slowdowns set in.

Other notable movers included Sydney, which recorded a 58 per cent quarterly jump to 52 super-prime sales, and Miami, where activity surged 82 per cent to 40 deals. London, once a dominant force in this bracket, slipped to seventh place with just 35 transactions.

Zooming out, Knight Frank tracked 2,164 super-prime sales globally over the 12 months ending Q4 2025, totalling $40.5 billion, the second-strongest rolling annual performance since 2021. Yet even within a buoyant global landscape, Dubai stands apart.

For the world’s wealthiest buyers, the message is increasingly clear: the centre of gravity in ultra-luxury real estate has shifted. And for now, Dubai isn’t just leading the race, it’s accelerating away from the pack.