Q2 2025 Market Insights: Dubai’s Real Estate Sector Maintains Strong Momentum
- 25.07.2025
- Posted by: Uwe Hohmann
- Categories: Real Estate, Dubai
The Dubai real estate market continued to perform strongly in the first half of 2025, with rising transaction volumes, sustained investor interest, and positive trends across both the sales and rental segments. Despite global uncertainties, Dubai remains one of the most attractive real estate markets globally, supported by long-term population growth, infrastructure investment, and stable governance.
Transaction Activity Reaches New Highs
In the first quarter alone, Dubai recorded over 45,000 residential transactions, representing a year-on-year increase of 22 percent. The total sales value reached AED 142.7 billion, marking a 30 percent rise compared to the previous year. Both off-plan and secondary markets contributed to this growth. Completed property sales reached AED 87.5 billion, the highest quarterly value ever recorded.
Apartments remained the most traded asset class, with strong demand for one-bedroom units in areas such as Jumeirah Village Circle and Dubai Marina. Villas and townhouses also saw significant growth, particularly among families seeking more space and long-term value. The villa segment experienced a 65 percent increase in transactions and a 16 percent rise in average prices compared to Q1 2024.
Off-Plan Market Leads the Way
Off-plan properties accounted for the majority of sales volume, driven by flexible payment plans, attractive launch pricing, and post-handover incentives. In comparison to secondary market units, off-plan projects often provide lower entry points and higher potential for capital appreciation. Developers continue to respond to demand with new project launches, especially in emerging areas.
Luxury Segment Gains Further Ground
Dubai’s luxury residential market recorded over 1,300 transactions above AED 10 million in Q1 2025, a 31 percent increase compared to the same period in 2024. Prime locations, such as the Palm Jumeirah, Dubai Hills Estate, and Jumeirah Bay Island, continued to attract high-net-worth individuals from Europe, the GCC, and Asia. The most expensive transaction this year was a villa on Jumeirah Bay Island, sold for AED 220 million.
Investor Confidence Remains High
International buyers accounted for over 58 percent of all real estate transactions. Leading sources of investment include India, the United Kingdom, China, and Saudi Arabia. Many buyers are motivated by strong rental yields, long-term residency options, and Dubai’s stable, tax-friendly environment.
Emerging Investment Hotspots
Areas such as Palm Jebel Ali, Dubai Islands, and Dubai South are becoming increasingly attractive to investors, driven by large-scale infrastructure developments and improved connectivity. These districts are expected to see capital appreciation in the coming years.
Outlook for 2025
The outlook for Dubai’s real estate market remains positive. Price growth is expected to continue, supported by demand outpacing new supply. With a growing population, strong economic fundamentals, and increasing investor interest, the city is well-positioned for stable, long-term growth.
TME ESTATE - Your Property Partner in Dubai
At TME ESTATE, a part of TME Services, we help you understand Dubai’s evolving property market with confidence. These Q2 insights represent just the beginning of a deeper analysis. Our comprehensive market report breaks down emerging hotspots, investment patterns, and strategic opportunities that could shape your next move. For detailed sector breakdowns and actionable market intelligence, access our full trend report here.
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