Dubai Real Estate Market Report — Q2, 2025

Dubai Real Estate Market Report – Q2 2025

Dubai's residential and commercial property sector wrapped up the second quarter of 2025 on an unprecedented scale, registering 53,318 transactions across all property types for a combined AED 185.36 billion — fresh all-time peaks for the all-property total — with the median price landing at AED 1,611 per square foot. Excluding plots and buildings, the apartment, villa and commercial categories together made up 52,214 deals (+23% year on year) worth AED 155.92 billion (+47%).

The upturn was widespread yet clearly anchored in residential activity: apartments accounted for the bulk of volume, villas contributed the sharpest momentum, and the comparatively smaller commercial segment still turned in double-digit growth. Pricing was steady or climbing in every occupied-property category, with none losing ground.

Headline figures

Year-on-year performance by category

Apartments powered the growth. This category recorded 40,683 transactions, an increase of 19% year on year and 6,478 more than in Q2 2024, bringing in AED 82.99 billion (+31%) — the biggest category by value and the strongest Q2 apartment volume across the 12-year series. The median price stood at AED 1,706 per square foot, 3% higher than a year earlier and 37% above the 2014 baseline, itself a Q2 series peak, while the median transaction value stayed flat at AED 1,282,108. Apartments thus posted fresh Q2 highs in both volume and price per square foot.

Villas stood out as the segment with the greatest momentum. Volume surged 41% to 10,278 deals — 2,991 more than the year before and the strongest Q2 villa count on record — while value rose 72% to AED 69.33 billion, second only to apartments. Pricing was the main driver behind the gain: at AED 1,508 per square foot, up 17% year on year and 98% above the 2014 level, villa prices reached a Q2 series high, and the median transaction value inched up 4% to AED 3,620,888.

Commercial property was the smallest of the three occupied-property categories, yet it was hardly quiet. Its 1,253 deals (+13%, the best Q2 showing since 2014) generated AED 3.60 billion (+51%), and the median price climbed 29% to AED 1,744 per square foot — a Q2 series high and, notably, the highest per-square-foot figure of any category this quarter — with the median transaction value up 26% to AED 1,762,200.

Every category, including plots and buildings

Plots came third by value at AED 29.41 billion across 1,098 transactions and carried the market's highest median transaction value at AED 6,000,000, reflecting land-scale lot sizes despite a modest AED 556 per square foot. Buildings, by contrast, were a negligible slice of the market, with just six trades totalling AED 23.43 million.

Primary versus resale

Off-plan activity dominated the pipeline. Primary sales accounted for 67% of volume and 69% of value — 34,810 deals worth AED 106.90 billion — while the resale market made up the remaining 17,404 transactions and AED 49.02 billion, equal to 33% of volume against a slightly smaller 31% of value. That two-point gap suggests primary stock skews toward higher-value properties relative to the resale channel.

Where the activity was

Ranked by value, Me'Aisem Second led clearly at AED 14.92 billion, ahead of Al Yelayiss 1 (AED 9.01 billion), Marsa Dubai (AED 8.39 billion), Business Bay (AED 7.73 billion) and Dubai Investment Park Second (AED 6.89 billion). Ranked by deal count, Al Barsha South Fourth came out on top with 4,921 transactions, followed by Business Bay (3,132), Al Yelayiss 1 (2,865), Wadi Al Safa 5 (2,461) and Marsa Dubai (2,226). Three locations — Al Yelayiss 1, Marsa Dubai and Business Bay — feature on both the value and volume leaderboards, making them the quarter's dual engines of turnover and capital.

Rental market

The leasing market strengthened on every front, with all rent measures climbing year on year. New apartment leases totalled 32,286 (+16.77%) at a median AED 70,000 (+7.69%), while the larger pool of 39,778 renewals came in at AED 57,000 (+8.57%). Villa tenants paid a median AED 180,000 across 4,638 new contracts (+16.33%), compared with AED 150,216 for renewals. Commercial leasing recorded the fastest growth in new-contract count at +31.17%, and renewal rents there rose 12.93% to AED 112,933, with per-square-foot rates up 20.48%.

Supply

Developers launched 42,334 units across 166 projects, while 31 projects handed over 7,621 units — a launch-to-delivery ratio of 5.6 and a net 34,713 more units launched than delivered, showing a pipeline that continues to fill much faster than it clears.

Selected launches

• South Square - S4 – Dubai South (Dubai South), 473 units
• Ashwood Residences By Skyland Horizons Real Estate Development – Al Barsha South Fifth (Skyline Builders), 153 units
• The Orchard Place- Towers D&E – Al Barsha South Fourth (Peak Summit), 400 units
• Floarea Skies – Al Barsha South Fourth (Mashriq Elite), 227 units
• Alta View Skyhomes – Al Barsha South Fourth (Object One), 507 units
• Verdana 1 – Wadi Al Safa 5 (Object One), 208 units
• Grand Polo - Montura 3 – Dubai Investment Park Second (Emaar), 219 units
• Binghatti Aquarise - Tower E – Business Bay (Binghatti), 1,602 units
• The Mural – Madinat Dubai Almelaheyah (Beyond), 268 units
• Waada - Rayhan 1 – Dubai South (Bt Properties), 287 units
• … and 156 further projects

Selected completions

• Alef Noon Residence – Al Barsha South Fourth (Al Bait Al Duwaliy), 113 units
• The Vybe – Al Barsha South Fourth (Metrical), 276 units
• Seagate Building 4 – Madinat Dubai Almelaheyah (Emaar), 282 units
• Lumina Vista Residences – Al Barsha South Fourth (Arib), 74 units
• Mudon Al Ranim 1 – Al Hebiah Sixth (Dubai Properties), 224 units
• Binghatti Azure – Al Barsha South Fourth (Binghatti), 650 units
• Dawn By Binghatti – Al Barsha South Fourth (Binghatti), 97 units
• Damac Hills-Bel Air – Al Hebiah Third (Damac), 215 units
• Palm Hills – Hadaeq Sheikh Mohammed Bin Rashid (Emaar), 76 units
• The S Tower – Al Safouh Second (Sobha), 94 units
• … and 21 further projects

Most expensive sales

Top apartment sales

1. AED 170,000,000 – Peninsula Dubai Residences - Tower 1, Jumeirah Second
2. AED 163,881,000 – Jumeirah Residences Asora Bay, Jumeirah First
3. AED 125,797,699 – Aman Residences Tower 1, Jumeirah Second
4. AED 47,415,808 – Peninsula Dubai Residences - Tower 2, Jumeirah Second
5. AED 42,000,000 – Bulgari Residences 2, Jumeirah Bay Islands

Top villa sales

1. AED 300,000,000 – Palm Jumeirah
2. AED 158,000,000 – Wadi Al Safa 3
3. AED 103,268,816 – Dubai South
4. AED 100,000,000 – Hadaeq Sheikh Mohammed Bin Rashid
5. AED 79,200,000 – World Islands

Notes on methodology

Scope. The headline figures and category table capture every property category present in the data, including Plot and Building. The primary/resale breakdown, top-area rankings and year-on-year comparisons, however, cover Apartment, Villa and Commercial only, so those numbers are intentionally lower than the headline and should not be combined across sections.

Rounding. The headline totals stand as the authoritative rounded figures. Category-level breakdowns are rounded separately and may not add up precisely to the headline.

Definitions. Price figures represent medians rather than averages. Year-on-year comparisons measure the period against the equivalent period one year prior. All monetary values are in AED; all areas in square feet.