The World's Most Affordable Luxury Property Market

As per recent market reports, the average price per sq. ft. in the city stands at AED 1600. This is lower than many international hubs of high-end living: 

Tokyo — AED 1720 per sq. ft. 

New York — AED 1870 per sq. ft. 

London — AED 3450 per sq. ft. 

Paris — AED 3530 per sq. ft. 

Hong Kong — AED 8000 per sq. ft. 

Complementing this, Dubai also offers far higher rental yields than other global cities. In 2024 alone, gross rental returns in the emirate stood at an impressive 6–8%. This is in contrast to New York’s 3–5%, London’s 2–3.5% and Singapore’s 2–3% — an environment of lower buy-ins and higher returns fuelled by no income tax, the thriving Golden Visa programme and diverse luxury lifestyles. 

Looking ahead, the U.A.E.’s affordable luxury segment is projected to grow steadily at 2.45% annually from 2025 to 2029, with a 5–10% surge in new project launches expected in 2025 alone. The broader market is projected to reach $759 billion (AED 2.79 trillion) by 2029. Dubai is heavily tipped to account for the lion’s share in both these figures. 

It is a trend that ties in well with the Dubai Real Estate Sector Strategy 2033, which aims to attract international investments by showcasing high-value real estate assets, double the property sector’s contribution to GDP, and increase transactions — all by the year 2033. 

This strategy is already paying handsome dividends. Dubai has entered the top 10 global cities where the ultra-wealthy are buying second homes, according to a recent market report. With 81,000 millionaires now residing in the city and a record 9800 HNWIs expected to relocate to the U.A.E. this year (most moving to Dubai), demand for luxury real estate is skyrocketing. 

2025 has already broken records. 99,000 sales worth AED 328.8 billion were recorded in H1 alone — the most successful half-year period in Dubai real estate history. Off-plan sales made up over 60%, a demand that is in sync with the fact that Dubai’s expected supply is set to hit 150,000 new homes between 2025 and 2027 according to Moody’s; Fitch raises this number to 250,000. 

In H1 2025, ultra-luxury deals over $10 million nearly doubled, while transactions for homes valued at above AED 10 million surged by 62% YoY. A growing number of these residences are branded units — a market segment that is flourishing, with celebrated brands from Bulgari and Bugatti to Ritz-Carlton and Waldorf Astoria debuting residences in the city. 140 such projects are expected in Dubai by 2031, the most of any city worldwide. 

Luxury real estate in Dubai is, then, a unique proposition. It leads the world in affordability while redefining luxury itself, blending value, lifestyle and global appeal unlike any other comparable market worldwide.