Dubai Real Estate Market Report - Q2 2025 – All-Time Highs, Unmatched Momentum

Key Takeaways

• Record-Setting Quarter: Q2 2025 posted the highest-ever sales value (AED 184B) and volume (53,118 transactions) in Dubai’s history.
• Unprecedented Growth: Sales value jumped 48.8% YoY and volume rose 22.8% YoY, far outpacing every prior Q2.
• Off-Plan Dominance: 1st Sale (primary market) accounted for 66% of both transaction value and volume.
• Price Appreciation: Average property price and price per sqft both hit new peaks—AED 1,633,944 and AED 1,607/sqft, up 6.1% YoY.
• Strong Demand Across Segments: Villas, plots, and apartments all contributed to growth, with luxury sales and affordable segments both active.
• Mortgage Surge: Mortgage transactions soared 48% YoY in count, but average loan value trended lower, signaling more end-user participation.
• Top-Selling Projects & Luxury Deals: Ultra-prime Jumeirah addresses dominated the most expensive sales; best-selling projects spanned both affordable and luxury sectors.

1. The Historic Milestone—Q2 2025 in Charts

• Q2 sales volume, 2014–2025: Highest in Dubai history
• Q2 sales value, 2014–2025: Surpassing all previous highs
  
  

2. Market Overview

	Q2 2025	QoQ	YoY
Sales Volume	AED 53,118	+16.8%	+22.8%
Sales Value	AED 184B	+28.9%	+48.8%
Avg Price/sqft	AED 1,607	+2.8%	+6.1%
Avg Price	AED 1,633,944	+7.6%	+7.6%

• Sales value and transaction volume are at their highest in Dubai’s modern history.
• Momentum is market-wide: All major property types contributed to the surge.
  
  

3. Off-Plan vs. Resale

• Off-Plan/1st Sale: 66% of volume and value (35,389 transactions, AED 122.6B)
• Resale: 34% of volume and value (17,729 transactions, AED 61.5B)
• Off-plan remains the main engine of Dubai’s growth, but resale activity is robust with double-digit YoY increases.
  
  

4. Segment & Asset Class Breakdown

Asset Type	Volume	Value	QoQ	YoY
Apartments	40,453	AED 81.6B	+22.7%	+18.7%
Villas	10,019	AED 66.5B	-1.8%	+38.3%
Commercial	1,252	AED 3.6B	+3.2%	+12.5%
Plots	1,384	AED 32.2B	+27.1%	+49%

   

• Apartments: Largest by volume, consistent with Dubai’s urbanization story.
• Villas: Highest YoY value growth, driven by end-user and affluent buyer demand.
• Plots: Transaction value up 49% YoY—developers and investors are fueling the next wave.
  
  

5. Price Trends (2014–2025)

Average Price per Sqft:

• 2014–2021: Flat to declining, bottoming in 2021 (AED 958/sqft)
• 2025: AED 1,607/sqft (+68% from 2021 low, +6.1% YoY)
  
  

Average Property Price:

• 2021: AED 1.33M
• 2025: AED 1.63M
  
  

Key Insight:

The market has decisively broken above its previous cyclical peaks, with prices now at all-time highs after years of stagnation.

6. Price Change by Segment

Segment	Median Price	YoY Change	Since 2014
1st Sale Apt	AED 1.3M	-0.2%	+39.7%
1st Sale Plot	AED 4.4M	-5%	+49.2%
1st Sale Villa	AED 3.8M	+5.7%	+22.6%
ReSale Apt	AED 1.2M	+0.4%	+4.8%
ReSale Plot	AED 6.9M	-2.6%	+32.4%
ReSale Villa	AED 3.5M	+6.8%	+3.5%

 

• Villas (primary & secondary) outperformed apartments for annual price growth.
• Plots and apartments delivered the best decade-long gains for early investors.
  
  

7. Demand Profile

By Price Range (excl. mortgage transactions):

• Below AED 1M: 26%
• AED 1–2M: 32%
• AED 2–3M: 17%
• AED 3–5M: 13%
• Above AED 5M: 12%
• Mass-market is active (58% of deals below AED 2M), but luxury and ultra-luxury sales (AED 3M+) remain vibrant.
  
  

8. Mortgage Market

• Transactions: 13,604 (+48.3% YoY)
• Value: AED 42.2B (-1.4% YoY)
  
  

Interpretation:

End-user and first-time buyer activity is surging, as banks support affordability at lower average loan sizes.

9. Top Transactions & Best-Selling Projects

Ultra-Luxury Apartment Sales:

1. Peninsula Dubai Residences - Tower 1 (AED 170M, Jumeirah Second)
2. Jumeirah Residences Asora Bay (AED 164M, Jumeirah First)
3. BULGARI Lighthouse Dubai (AED 156M, Jumeirah Bay Island)
4. Private Residences Dubai (AED 140M, Jumeirah Second)
5. Aman Residences Dubai - Tower 1 (AED 126M, Jumeirah Second)
   
   

Best-Selling Projects by Segment:

(See previous section for full data table.)

• Top 1st Sale Apartment: Sobha Solis (712 units, AED 881M, Median AED 1.1M)
• Top 1st Sale Villa: Al Yelayiss 1 (2,227 units, AED 7.2B, Median AED 2.5M)
• Top Resale Apartment: Azizi Riviera (317 units, AED 267.5M, Median AED 685K)
• Top Resale Villa: Al Yelayiss 1 (600 units, AED 1.7B, Median AED 2.5M)
  
  

10. Expert Analysis & Market Outlook

What’s driving the boom?

• Demographics & migration: Global capital inflows, new resident visa pathways, and population growth are fueling demand.
• Investor confidence: Off-plan launches are oversubscribed and resale liquidity is robust.
• Developer innovation: Top brands are launching differentiated products, capturing both international and local buyers.
  
  

Risks & Counterpoints:

• Affordability: Rapid price gains could limit access for mid-income buyers.
• Interest rates: Any global monetary tightening could test leverage-heavy segments.
• Supply: Construction pipeline remains healthy, but any delivery delays could further stoke prices.
  
  
  

11. Recommendations

For Investors:

• Focus on off-plan launches in prime and emerging areas for maximum upside, but don’t ignore established resale communities for stability and liquidity.
• Diversify exposure: balance luxury bets with yield-generating mid-market units.
  
  

For End-Users:

• Buy sooner in established or undersupplied communities. Rising prices and limited inventory may price out fence-sitters.
• Explore competitive mortgage options as banks chase market share.
  
  

For Developers:

• Continue launching high-quality, differentiated products—demand is there, but buyers are discerning.
• Transparency and timely delivery are your best tools for trust and premium pricing.
  
  

Final Word

Q2 2025 isn’t just another strong quarter—it’s a historic inflection point for Dubai real estate.
With record-breaking value, surging volumes, and rising prices across all asset classes, Dubai remains the global benchmark for property market resilience, ambition, and opportunity.