Dubai’s property market posts strong growth in Q2 2025 despite regional turbulence

Dubai’s real estate sector continued its upward momentum in the second quarter of 2025, with the total value of property sales surging 46% year-on-year to AED151.8 billion, according to Betterhomes’ latest report. Transaction volumes also rose 25% to reach 50,485 units during the same period.

The data reflects Dubai’s resilience, withstanding June’s regional unrest and reaffirming its status as a safe haven for both investors and end-users.

Apartments dominate transactions, off-plan leads the way

Apartments remained the most traded asset class, accounting for 80% of all property deals, with over 40,000 units sold. Sales in the apartment segment generated AED 81 billion. Off-plan transactions saw a notable 30% increase compared to the previous quarter, as developers launched new projects to meet rising demand.

Two-bedroom units led off-plan activity, followed by one-bedrooms and studios. Off-plan prices averaged AED2,023 per square foot, while secondary apartment prices averaged AED1,600.

Jumeirah Village Circle (JVC), Business Bay, and Dubai Residence Complex emerged as top-performing areas for off-plan apartment sales.

Villas and townhouses: Diverging trends

While off-plan villa sales declined 23% year-on-year, the secondary market showed robust growth. Sales of ready villas and townhouses rose 66% annually, reaching AED62.4 billion.

The Valley and EMAAR South topped the list for off-plan villa transactions, with four-bedroom homes accounting for nearly half of the total value in this segment.

Price growth continues across segments

Dubai’s average property price rose to AED1,582 per square foot, up 6% compared to the second half of 2024 and nearly double pandemic-era lows.

Off-plan apartment prices increased by 12.5% since early 2023, while secondary apartment prices jumped by23% in the same period. Villas also saw quarterly gains, with secondary prices up 9% and off-plan prices rising 4%.

Over 20,000 new units were delivered in the first half of 2025, with 70,000 more expected before year-end. JVC, Sobha Hartland, and Mohammed Bin Rashid City led handovers.

luxury market hits record highs

High-end properties saw unprecedented activity. A total of 1,417 transactions valued at AED15 million or more were recorded—up 113% from a year earlier. Most of these were secondary sales, which far outpaced off-plan deals.

In just six months, the luxury segment nearly matched 2024’s full-year volumes.

Rental market holds steady

Dubai’s rental market remained active, with over 107,800 contracts registered in Q2—roughly in line with last year. Renewals continued to make up the majority of contracts, while new lease activity held steady.

Villa and townhouse rentals saw rising demand, reflecting a broader preference for family-oriented living spaces.

British investors overtook Indian buyers to become the largest group of foreign purchasers at Betterhomes, with a 56% quarter-on-quarter increase. Pakistan, Poland, and Ireland also featured prominently, while Russian buyer activity declined.

Dubai’s population has grown to over 4.1 million, alongside rising school enrollments and international student numbers. The tourism sector also contributed, with a 7% year-on-year increase in visitors through April 2025 and hotel occupancy reaching 84%.

Betterhomes reported a 17% quarterly rise in sales activity, while leasing transactions more than doubled from the same period last year.

Looking ahead, industry experts anticipate more balanced pricing and growing competition as new supply enters the market, but fundamentals such as population growth and infrastructure investment continue to support long-term demand.