Dubai's Ultra-Luxury Property Market to Remain Robust in 2026

Dubai's ultra-luxury property market, which saw villa transactions exceeding AED 400 million in 2025, is expected to remain buoyant in 2026, fueled by the continued influx of high-net-worth individuals from the UK, according to a report by Sotheby's International Realty.

The average selling price in this sector was reported to be approximately AED 68.32 million in 2025.

British Buyers Lead Luxury Property Acquisitions

Changes in tax regulations and the rising cost of living in the UK were the primary drivers of this market last year.

Capital Migration Factors: The elimination of tax benefits for non-domiciled individuals, a 20% value-added tax, and an increase in employer national insurance contributions in the UK have prompted wealthy individuals to choose Dubai as their primary base.

Wealth Migration Statistics: According to Henley & Partners, the UK was expected to lose approximately 16,500 millionaires in 2025, while the UAE aimed to attract nearly 10,000 new millionaires.

Record-Breaking Areas and Supply Shortages

In 2025, the highest volume of high-value transactions was concentrated in three areas:

📍 Emirates Hills: Registered the largest transaction of the year, exceeding AED 400 million.

📍 Palm Jumeirah

📍 Jumeirah Bay Island

Key Point: The limited availability of ready-to-move-in villas in exclusive areas will exert upward pressure on prices in 2026.

Characteristics of Ultra-Luxury Transactions

Villa Share: Detached and beachfront villas accounted for 60% of sales in 2025.

Cash Purchases: 90% of buyers settled their property purchases in cash, with only 10% utilizing bank financing. This has shielded Dubai's luxury real estate market from global interest rate fluctuations.

International Buyers: In addition to British nationals, Indian and European citizens were also at the top of the list of buyers.

Dubai: A Destination for Long-Term Residence

The development of residency pathways and urban infrastructure has led foreign buyers to view Dubai not only as an investment destination but also as a primary residence for their families. Notably, Dubai's population exceeded 4 million last year.