Dubai Real Estate Market: Steady Price Increase for Homes, Relief for Buyers and Renters Imminent
Dubai's property market continued its upward trend in the second quarter of 2025, with both villas and apartments registering record-high prices. According to the latest ValuStrat Price Index, villa prices rose by 28.7% year-on-year, while apartment prices increased by 19.1%.
The strong demand, despite the completion of approximately 17,500 new homes in the first half of 2025, has driven up prices significantly. In Q2 alone, there were nearly 37,000 off-plan sales, with a total value of Dh113 billion, and about 49,600 total residential transactions, representing a 22% increase from Q2 2024.
The average price per off-plan unit reached around AED 3.1 million, and ready home sales averaged AED 2.7 million. The secondary market also surged, with 13,691 resale deals, with nearly 36.4% priced under Dh1 million.
Strong investor confidence, end-user demand supported by government initiatives and programs like the First-Time Home Buyer Programme, and a robust rental market have all contributed to the sustained price growth. Villa and apartment rents also increased, with villas averaging AED 428,000 annually (+4.8% YoY) and apartments AED 95,500 annually (+7.2% YoY).
Looking ahead, the second half of the year is expected to see more supply, with over 66,596 units expected to be completed by year-end, with 65% being apartments and 35% villas and townhouses. While villa prices remain high, the slowing growth and upcoming supply may offer better deals. The apartment segment, on the other hand, saw a more modest rise, with a 3.4% increase in Q2 and a 19.1% year-on-year increase.
Key points:
- Villa prices up 28.7% YoY; apartment prices up 19.1% YoY in Q2 2025.
- Average off-plan unit price: AED 3.1 million; ready homes average AED 2.7 million.
- 37,000 off-plan sales and 49,600 total residential transactions in Q2.
- 17,500 new homes completed in H1 2025 did not ease price rises.
- Strong rental growth reflecting sustained market demand.
- Market driven by investor confidence, end-user demand, and government support.
In summary, the supply of new homes has been met with equally strong demand, resulting in continued price appreciation rather than price moderation in Dubai’s residential villa and apartment segments during Q2 2025. The top off-plan hotspots include JVC, Damac Islands, and Business Bay, offering potential buyers a variety of options.
- The Dubai housing-market experienced a notable surge in the second quarter of 2025, as both villas and apartments saw record-high prices.
- The strong demand for real estate in Q2 2025, despite the completion of 17,500 new homes, drove up prices significantly with nearly 37,000 off-plan sales and a total value of Dh113 billion.
- Investors and end-users demonstrated strong confidence in Dubai's real estate market, contributing to the sustained growth, as evident in the 22% increase in total residential transactions compared to Q2 2024.
- The increase in villa and apartment rents also mirrored the price growth, with villas averaging AED 428,000 annually and apartments AED 95,500 annually, reflecting a robust rental market.
