Knight Frank expects USD 10.3 bn in global capital to flow into Dubai’s property market by end-2025, up from USD 6.9 bn in 2024, Knight Frank’s Faisal Durrani noted in a LinkedIn post citing the firm’s Destination Dubai 2025 report. Average intended spend among investors is USD 32 mn, with 15% of respondents targeting purchases over USD 80 mn. The report surveyed 387 HNWIs with average personal wealth of USD 22 mn in Saudi Arabia, India, China, Hong Kong, Singapore, and the UK.

Some 68% of global high-net-worth individuals (HNWIs) ranked the UAE’s residential sector as their top asset class, with 33% planning to invest in the sector in 2025, according to the report

Over half of all surveyed HNWIs (52%) are considering Dubai as a primary residence, not just an investment destination — up from 43% last year.

Saudis showed the greatest interest, with 66% aiming to purchase this year and another 27% eyeing acquisitions over the next two to three years. Interest is also growing across Asia, particularly from Hong Kong-based investors, with 22% of respondents looking to invest — well above the East Asian average of 17%.

Wealthier individuals are more interested in buying UAE property, with 68% of HNWIs worth USD 30-50 mn planning to buy UAE property this year, compared to just 12% of those worth USD 2-5 mn — making them nearly six times more likely to invest in 2025.

Dubai remains the preferred emirate for 71% of global HNWIs investing in the UAE. Demand was strongest among Saudis (80%), followed by Britons (74%), Indians (69%), and East Asians (61%). These four groups accounted for over 50% of Knight Frank’s Dubai residential sales in 2024.

ICYMI- Dubai’s ultra-luxury property market recorded 111 sales above USD 10 mn in 1Q alone — the highest 1Q figure on record. That follows a record 435 transactions upwards of USD 10 mn in 2024, nearly matching the combined total of such sales in London and New York.

Where the money is going: Dubai Marina remains the most preferred location (28%), followed by Dubai Hills Estate (24%) and Emirates Hills (23%). New hotspots such as Palm Jebel Ali, Dubai Islands, and branded developments like Trump Tower, Binghatti Apartments, and Azizi’s luxury projects are also gaining traction.

Villas remain the top choice, with 55% of respondents preferring standalone homes. Size matters too, with 35% of buyers targeting villas over 10k sqft, while 25% are looking for homes between 6k-10k sqft.

The appeal: Knight Frank’s Shehzad Jamal cited a projected 2.4 mn population increase by 2040 as a long-term demand driver. He also noted Dubai’s record 169k real estate transactions in 2024, valued at AED 367 bn, adding that global HNWIs are increasingly choosing the city for its safety, infrastructure, and leadership in branded residences.

Plus, returns remain competitive: Industrial and logistics yields saw 33% rental growth over the past year, with yields averaging 7.5-8% on leasehold assets, according to Knight Frank analyst Stephen Flanagan. Residential yields remain stable, with apartments at 5-7% and villas/townhouses at 4.5-6%.

… on the back of increased prices: Residential values in Dubai are up 17.4% y-o-y, with villas outperforming at 19.6%, Durrani said.

REMEMBER- New supply could stabilize the market: Some 352k under-construction homes are slated for delivery by the end of 2029. Knight Frank previously forecast an 8% price increase in properties in 2025, down from double-digit growth in 2024, while Moody’s sees a dip or stabilization over the next 12-18 months. A Deloitte report also expects new market supply to slow residential price and rent growth.

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