Nearly 20% of homes in Dubai are now valued at over $1 million, according to an analysis by global real estate consultancy Knight Frank.
The study reveals that many homeowners have become “accidental millionaires,” as their property values rose above $1 million solely due to price inflation. The analysis only includes homes that haven’t been sold since their original purchase.
Key Findings from Knight Frank
Knight Frank’s data shows that of the 530,000 homes sold since 2002, around 95,000 are now valued at over $1 million, with a combined total worth of Dh822 billion, according to Faisal Durrani, partner and head of research for MENA at Knight Frank.
In 2020, just 6.3% of Dubai homes were valued at over $1 million. Today, that figure has risen to 18.1%, or nearly one in five homes.
The total value of all homes sold in Dubai since 2002 has reached Dh1.47 trillion, marking a 221% increase since 2020.
Dubai Property Prices Continue to Surge
Dubai’s real estate market has seen record growth in recent years, driven by high demand from new residents and investors. Knight Frank’s Dubai Residential Market Review: Special Edition projects an 8% rise in property prices in 2025 as demand remains strong.
The study highlights a 19.9% year-over-year increase in Dubai house prices as of 2024. However, Faisal Durrani predicts that the pace of growth will slow in 2025 due to potential global economic challenges.
Luxury Market Growth
Dubai’s prime residential market, including areas like Palm Jumeirah and Jumeirah Islands, continues to thrive. Luxury villa prices in these locations are now almost double their 2014 levels. The prime market is expected to grow by 5% in 2025, following significant growth in 2022 and 2023.
Forecast for 2029 and Beyond
Knight Frank estimates that nearly 300,000 new homes will be delivered in Dubai by the end of 2029, with apartments accounting for 80% of the new supply. However, the villa market remains tight, with only 8,900 new villas expected by the end of 2024 and an additional 19,700 by the end of 2025.
Housing Demand and Population Growth
To meet Dubai’s projected population growth, the city will need 37,600–87,700 new homes annually through 2040, depending on population growth rates. However, delays in construction mean that only 35,000 homes per year are likely to be delivered over the next six years, leading to a housing shortfall.
Limited Land Availability Driving Prices Higher
Petri Mannila, partner and head of prime residential UAE at Knight Frank, notes that limited availability of development sites in key areas is pushing up prices for both off-plan and refurbished older homes. This shortage is widening the gap between prime neighborhoods and the rest of Dubai.
