Dubai, the "haven" of the super rich - The "boom" of luxury properties reached a new record, despite tariff tensions
The "boom" in Dubai's luxury market continued in the first quarter, with wealthy buyers again driving record sales of homes worth over US$10 million.
During the first three months of 2025, 111 homes were sold, a 5.7% increase from the same period last year, according to Knight Frank. During that period, there were 12 home sales worth $25 million or more.
The surge in sales shows how Dubai's real estate market continued to see growing demand in the months before the global market turmoil in April, after US President Donald Trump announced sweeping global tariffs.
Analysts have warned that Dubai's property sector will face more risks in the future. High-net-worth individuals from around the world may withdraw due to market uncertainties. Falling oil prices could also cause a slowdown in Gulf economies. The first-quarter figures reflected "continued appetite from global super-rich individuals seeking unique homes," Knight Frank said in a report. However, there is a risk that the recent turmoil in global assets could impact Dubai's real estate.
"There is always the risk of contagion, of negative sentiment, which is something that cannot be controlled from within," the authors say.
Demand for property in Dubai has surged since 2020, as the government's handling of the pandemic and its liberal visa policies attracted many foreign buyers. The emirate's luxury real estate market, including waterfront villas on the city's palm-shaped artificial islands, has benefited from an influx of wealthy expatriates. In the first quarter, the man-made island of Palm Jumeirah remained one of the most popular locations, recording 34 home transactions priced above $10 million for a combined value of $562.8 million.
The report highlights that the impact of tariffs on supply chains for raw materials used in construction is another factor increasing uncertainty.
Money managers have been moving to the UAE in recent years, lured by its tax-free income, year-round sunny weather and a time zone favorable for trading across Asia, the UK and Middle Eastern markets.
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