August 2025 Market Snapshot
Dubai’s real estate market demonstrated resilience in August 2025. According to verified market reports:
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AED 50.7–51.1 billion in total transactions were recorded (Property Finder/fäm Properties).
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18,564–18,678 transactions were logged across sources.
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This represents a 7.9–15% year-on-year increase compared to August 2024.
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Transaction volumes surged 15.4% YoY to 18,678 deals.
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Off-plan sales jumped 25%, making up more than 90% of the primary market.
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Average property price per square foot rose 2.1% to AED 1,932.
Why August Saw a Dip, But Growth Holds Steady
While August transaction values dropped 18% from July — reflecting seasonal slowdowns due to holidays — the fundamentals remain exceptionally strong:
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Year-on-year growth remains positive at 8–15% depending on metric.
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Off-plan dominance continued with 12,106 transactions in August (up ~20% YoY).
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H1 2025 momentum: total property sales surged 40% to AED 326.64 billion vs AED 233 billion in H1 2024.
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Secondary market activity remained healthy, with stable rental demand underpinning resale prices.
This indicates that the August slowdown was seasonal adjustment, not structural weakness.
Key Growth Drivers Behind the Numbers
Several verified factors contributed to Dubai’s ongoing strength:
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Population growth and visa reforms: Global talent inflows continue to boost end-user demand.
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Off-plan surge: Flexible post-handover payment plans and attractive entry points fuelled demand, with off-plan sales up 25% in August.
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Luxury demand: Nearly 600 high-value transactions above AED 20 million were recorded in early 2025.
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Price appreciation: Villas averaged AED 2,113 per sq ft (+18.9% YoY), while apartments averaged AED 1,725 per sq ft (+16.1% YoY).
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Government vision: The Dubai 2040 Urban Master Plan and infrastructure investments, such as metro extensions and Al Maktoum International Airport, underpin confidence.
Pricing Trends and Market Dynamics
Current market pricing shows sustained appreciation:
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Apartments: range AED 1,375–1,725 per sq ft depending on location and segment.
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Villas: averaging AED 2,113 per sq ft, among the strongest performing segments.
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Q1 2025: median asking prices rose 12% YoY, with 2-bedroom apartments up 17%.
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Outlook: ValuStrat projects a further ~10% price growth by year-end 2025.
Where did the growth come from? DXB Interact data shows:
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Dubai Islands led in transaction value, benefiting from strong off-plan launches.
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Palm Jebel Ali recorded premium villa transactions, reflecting scarcity-driven appreciation.
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Dubai South saw higher volumes in mid-market apartments, with investors targeting long-term growth tied to Expo City and the airport expansion.
These granular insights differentiate fäm properties from other market commentators, proving our data-backed authority.
Investor Takeaways
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Short-term dips are seasonal: August will not alter the overall bullish trend.
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Off-plan remains the main driver: 25% surge confirms investor confidence and flexible entry options.
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Price appreciation continues: 16–19% YoY gains across apartments and villas demonstrate capital growth.
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Volume growth outpaces value: 15% transaction increase vs ~8% value increase suggests market broadening.
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Emerging hubs offer yield: Expo City and Dubai South deliver competitive rental returns with affordable entry prices.
Summary
Dubai’s property market closed August 2025 with a verified 8–15% year-on-year growth across key metrics, despite the expected seasonal dip. Backed by strong population inflows, government-led infrastructure, and surging off-plan demand, the city remains one of the most resilient and rewarding real estate markets globally.
For investors, the message is clear: Dubai continues to deliver both immediate stability and long-term growth opportunities.
FAQs
Why did Dubai’s real estate market dip in August 2025?
The dip was seasonal due to summer holidays. Year-on-year figures still show 8–15% growth, confirming resilience.
Which communities performed best in August 2025?
Dubai Islands, Palm Jebel Ali, and Dubai South led the month, each driven by unique demand drivers from luxury scarcity to affordable yields.
Should investors worry about short-term dips?
No — dips are seasonal. Long-term fundamentals remain strong, with population growth, infrastructure investment, and off-plan demand supporting the market.
What’s driving price growth in 2025?
Population growth, infrastructure investment, off-plan demand, and limited premium supply have driven apartment prices up 16% YoY and villas nearly 19% YoY. Forecasts suggest another 10% potential growth by year-end.
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