Real Estate

Cash buyers seeking fully completed homes continue to dominate Dubai’s ultra-luxury villa resale market, reinforcing the emirate’s position as a global hub for ultra-high-net-worth individuals (UHNWIs), according to a new study by fäm Luxe.

The report by fäm Luxe, the luxury division of fäm Properties, shows that villas priced above AED 40 million recorded 169 resale transactions in 2025, with a total value of AED 11.57 billion. Only 15.7 per cent of these transactions were mortgaged, highlighting the strong presence of liquidity-rich buyers.

The analysis also reveals a clear preference for ready-to-move-in properties. Completed villas accounted for 98 per cent of resale transactions, while just 2 per cent involved under-construction homes. This stands in contrast to the apartment resale market, where 28 per cent of deals were off-plan.

According to Firas Al Msaddi, CEO of fäm Properties, the resale market reflects true buyer demand, as it is largely unaffected by leverage or short-term speculation.

“Demand for luxury villas is overwhelmingly concentrated on completed products,” Al Msaddi said. “Villas are personal assets offering privacy, scale, layout, natural light, finishes, and surroundings—factors that cannot be fully assessed before completion.”

He added that buyers in this segment prioritise certainty, lifestyle value, and long-term wealth preservation. “Ultra-luxury villa buyers are not chasing yield; they are allocating capital into privacy, security, and long-term stability.”

Data from DXBinteract provides the following breakdown of ultra-luxury villa resale values in 2025:

• AED 2.74 billion in the AED 40–50 million range

• AED 3.49 billion in the AED 50–70 million range

• AED 1.82 billion in the AED 70–100 million range

• AED 2.46 billion in the AED 100–200 million range

• AED 719 million in the AED 200–300 million range

• AED 330 million in the AED 300–600 million range

The AED 50–70 million segment emerged as the strongest performer, recording the highest annual resale value for the third consecutive year. Transaction values rose from AED 2.40 billion in 2023 to AED 3.33 billion in 2024, reaching AED 3.49 billion in 2025. Only 24 of the 159 transactions over this period involved mortgage financing.

Reflecting these trends, Nordic by fäm, the group’s development arm, has adopted a build-first strategy for its AED 3 billion portfolio of luxury villas in Dubai. Properties are released to the market only after being fully completed and furnished.

Two villas in Dubai’s Al Wasl district have already been sold for AED 61.5 million and AED 76 million, while more than 20 villas are currently under development. These include a 35,000-square-foot residence scheduled for completion in December, expected to be listed at AED 275 million.

“Buyers at this level want to experience the property firsthand—to walk the land, assess privacy, inspect finishes, and understand light, noise, and surroundings,” Al Msaddi said. “This level of patience reflects a stable and mature ultra-luxury market, aligned with global wealth preservation strategies.”

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