The global market for ultra-luxury real estate kicked off 2025 with a surge, signaling resilient demand among the world’s wealthiest buyers despite growing macroeconomic uncertainties. According to Knight Frank’s latest report released Thursday, 12 of the world’s top luxury markets witnessed a combined 527 super-prime property sales defined as homes priced at $10 million and above during the first quarter of the year. This marks a 6% increase compared to the same period in 2024, with total sales reaching $9.43 billion.
Dubai: The Global Leader in Super-Prime Sales
Dubai continued to dominate the ultra-high-end property segment, maintaining its top position from 2024. The city recorded 111 transactions totaling $1.9 billion, outpacing all other global hubs in both deal count and total volume. The city’s combination of luxury supply, tax benefits, and a reputation as a safe investment haven has solidified its appeal to international high-net-worth individuals.
New York Holds Strong in Second Place
The Big Apple maintained its status as a powerhouse in the luxury real estate market, logging 75 deals totaling $1.41 billion. Despite fluctuating economic signals in the U.S., demand for prime Manhattan properties remained robust, driven by domestic wealth, investment flows, and a return to urban living.
South Florida’s Remarkable Rebound
South Florida emerged as a major highlight of the report, with its key luxury markets rebounding strongly after a slow end to 2024.
- Palm Beach recorded 74 sales of $10 million-plus homes, totaling $1.35 billion in Q1. This represents a dramatic leap from just 21 deals in Q3 2024 and 42 in Q4, as well as a substantial increase from 57 deals in the first quarter of last year.
- Miami, another major winner, saw 58 super-prime sales, a 35% year-over-year increase—the largest jump among all surveyed markets. Total volume in Miami nearly doubled to $1.29 billion, underscoring the city’s rising appeal among global ultra-wealthy buyers seeking sun, security, and style.
Cooling Markets: London and Hong Kong
While some markets boomed, others showed signs of cooling.
- London reported just 34 $10 million-plus transactions, a sharp decline from both the 54 sales in Q1 2024 and 63 in Q4 2024.
- Hong Kong also experienced a quarterly drop, from 72 sales in Q4 to 42 in Q1 2025, though this still marked an improvement from 36 deals in the first quarter of last year. The city continues to face challenges related to shifting investor sentiment and geopolitical concerns.
Outlook: Global Demand Endures Amid Uncertainty
“Dubai maintains its lead, but the resurgence of South Florida and the rebound in Hong Kong show that demand remains truly global,” noted Liam Bailey, Knight Frank’s global head of research. “As we move through 2025, deal flow should remain healthy—however, rising macroeconomic uncertainties will demand greater focus from developers and investors.”
With buyers displaying renewed confidence in select markets and seeking long-term value amid shifting economic dynamics, the first quarter of 2025 confirms that the appetite for ultra-luxury real estate remains not only intact—but increasingly strategic and globally diversified.
