Dubai’s Ultra-Luxury Property Boom Shifts to Palm Jebel Ali as $5M-Plus Home Sales Surge
Dubai’s ultra-luxury residential market had another record-breaking year in 2025, with Palm Jebel Ali overtaking Palm Jumeirah as the emirate’s hottest location for homes priced above Dh20 million, showing a shift in investor preferences toward larger, next-generation waterfront communities.
Data from Penthouse.ae and Property Monitor show that 2,489 homes valued at more than Dh20 million changed hands during the year, highlighting sustained demand from ultra-high-net-worth individuals. Off-plan properties dominated activity, accounting for 64 per cent of transactions, signaling strong confidence in Dubai’s future luxury supply.
Palm Jebel Ali captured 21 per cent of all ultra-luxury deals, recording 517 transactions above Dh20 million and generating Dh12.4 billion in sales — the highest among Dubai’s prime locations. Brokers say buyers are drawn by larger plots, expansive waterfront villas, and long-term appreciation potential.
Dubai continues to outperform global prime markets. According to Knight Frank, the emirate recorded the world’s highest number of $10 million-plus home sales in 2025, ahead of London and New York. Prime residential prices have more than doubled since 2020, supported by population growth, residency reforms, and economic expansion.
Dubai Land Department data show total real estate transactions exceeded Dh760 billion in 2025, a record high. Analysts say Palm Jebel Ali’s rise reflects both its scale and the scarcity of new beachfront inventory elsewhere.
With limited ultra-prime supply and strong international demand expected to continue, market experts see Dubai’s top-end property segment remaining a global standout through 2026.
