Redefining luxury: super-prime Dubai

“Sunny climes have brought positivity to prime residential markets,” says Victoria Garrett, head of Global Residential at Savills, writing in the latest Prime Residential Index: World Cities. And nowhere is that better reflected than in Dubai, where the table-topping price growth seen in recent years shows no sign of abating.

“Dubai continues to be a standout destination for prime residential property, with capital values increasing by 6.8% and rents growing by a record 23.5% in 2024,” says Garrett. “Population growth and an influx of high-net-worth individuals and families to the UAE are underpinning strong demand for residential property, particularly in the prime markets.”

The Dubai market was on an upward trajectory well before 2020, but since the Covid pandemic it has become supercharged. The many visitors who arrive in Dubai soon discover the attractiveness of its low taxes, geographical location – making it easy to conduct business with Europe and Asia – and laid-back lifestyle. In turn, the emirate has developed exceptional property options for its increasingly wealthy audience.

“Dubai is recreating luxury with everything it does, taking the opportunities for residents to the next level,” says Garrett. “You see it in new developments right across the emirate and in refurbishments of older properties. On the Palm Jumeirah, for example, older villas are being completely upgraded, creating superb contemporary homes.”

Ever-increasing global mobility among the world’s wealthy has only made Dubai’s low-tax regime more attractive, but the lifestyle is equally compelling. Year-round sunshine, first-rate facilities across sport, leisure and culture, easy connections worldwide, international schools and healthcare, all with excellent service levels, make for smooth living – and give international residents strong reasons to stay.

“Dubai was once transient, a place where people came for a couple of years before returning home or moving on,” says Andrew Cummings, head of Residential Savills Middle East. “But that’s no longer true. With a five-star lifestyle and visas now available for 10 years, it has become a permanent place. Even ultra-high-net-worth individuals who travel extensively and perhaps only spend part of each year here still consider it somewhere they want a long-term base.”

As a result, in-demand properties have changed, too. Where once most prime and super-prime homes were apartments and penthouses in exclusive buildings – One at Palm Jumeirah and Bulgari Residences, for example – villas are now also increasingly sought-after.

“Lanai Islands are two gated private islets within the Tilal Al Ghaf resort, each with 13 or 14 private villas built around a crystal lagoon with sandy beaches,” says Cummings. “These are substantial villas – 25,000-35,000 square feet – and they all sold with prices up to AED103 million (£22 million). With architecture by Saota and interior design by Kelly Hoppen, both award-winners in their fields, they’ve brought ultra-luxury LA style to Dubai.”

The launch of high-quality properties provides more options for home buyers in the emirate. Cummings relates the progress of one client who initially bought off-plan at Royal Atlantis, then upgraded to a villa on the Palm during Covid. He has now made Dubai his primary residence and invested in Lanai Islands.

Other areas with super-prime options include Jumeirah Bay Island, the location of Bulgari Residences, Palm Jumeirah and Dubai Canal. Emirates Hills remains popular, while La Mer is a prestigious newer development.

“Dubai is the branded-residences capital of the world, with an extensive choice of projects,” says Cummings. “Prime brands here include Aman, Rosewood, Four Seasons and, newly launched, Mr C Residences Downtown from Cipriani. These are two- to four-bedroom homes, priced from AED8.1 million (£1.7 million), where we sold 23 units in the first week.”

This growth in branded residences is expanding beyond Dubai, creating interesting opportunities in neighbouring emirates, too. That includes Ras Al-Khaimah and Abu Dhabi, where brands include Nobu, Mandarin Oriental and, on the way, St Regis. The super-prime market is here to stay.

Read the Savills Prime Residential Index: World Cities in full