Dubai’s ultra-luxury property market continues to attract high-net-worth buyers, with nine homes selling for more than AED 100 million each in Q3 2026, despite a slowdown in luxury transactions.
Dubai continues to make headlines in the global luxury real estate market. Even as property prices and sales activity begin to cool, wealthy international buyers are still investing millions in some of the emirate’s most exclusive homes.
According to the latest report by property consultancy Cavendish Maxwell, nine residential properties in Dubai sold for more than AED 100 million ($27.2 million) each during the third quarter of 2026.
Between July and September, buyers spent approximately AED 9.6 billion on 257 properties priced above AED 20 million. The figures highlight the continued presence of high-value transactions in Dubai’s luxury property sector, even as overall market activity becomes more measured.
Dubai Luxury Property Sales Slow in Q3 2026
Despite the impressive transaction values, Dubai’s luxury housing market is showing signs of moderation.
Luxury home sales declined by 40% year-on-year, while ultra-luxury transactions dropped by 34% during the third quarter.
However, the ultra-luxury segment continued to generate significant revenue. Around 42 properties in this category recorded combined sales worth AED 3.4 billion.
This suggests that while fewer luxury properties are changing hands, demand for exclusive homes has not disappeared.
Instead, buyers are becoming more selective about property locations, pricing, quality and long-term investment potential.
Palm Jumeirah Remains a Favourite Among Luxury Buyers
Palm Jumeirah continues to hold a strong position in Dubai’s luxury real estate market.
According to Knight Frank, the average property price across the island declined by 9.1% annually to AED 4,083 per square foot.
Despite this correction, Palm Jumeirah recorded 27 transactions involving homes priced above $10 million during Q3 2026, with a combined value of approximately AED 2.01 billion.
The most expensive property transaction on the island during the quarter reached AED 260 million.
The figures show that premium waterfront locations continue to attract wealthy buyers looking for luxury residences, holiday homes and long-term property ownership in Dubai.
Dubai Records 412 Property Sales Above $10 Million
Dubai’s high-end residential market has experienced significant growth over the past few years.
During the first nine months of 2026, the emirate recorded 412 residential property transactions above $10 million, compared with 357 during the same period in 2025.
These transactions generated approximately AED 24.5 billion in sales.
Knight Frank’s figures also show how quickly Dubai’s luxury property market has expanded. Transactions above $10 million increased from just 30 in 2020 to 434 in 2023.
In December 2025, a six-bedroom penthouse at Bugatti Residences in Business Bay sold for AED 550 million, setting a record for the UAE’s most expensive penthouse sale, according to Knight Frank.
What Lies Ahead for Dubai’s Luxury Real Estate Market?
Dubai’s luxury property market is entering a more selective phase. Rising residential supply, changing buyer expectations and slower transaction activity are influencing purchasing decisions.
Around 291,800 new homes are scheduled for completion across Dubai in 2027 and 2028. While this could increase competition in the wider residential market, the impact on luxury properties will depend on location, property quality and the availability of comparable homes.
For investors, established luxury communities such as Palm Jumeirah and other prime waterfront destinations may continue to attract interest because of their limited locations and international appeal.
Overall, Dubai’s nine property sales above AED 100 million demonstrate that the emirate remains an important destination for global luxury real estate investment. However, the latest figures also suggest that buyers are becoming more careful, making property selection, location and pricing increasingly important.