The Dubai real estate market recorded a landmark first half of 2025, as population growth, capital value appreciation and a surge in off-plan investments pushed property transactions to a historic high.
According to a recent ValuStrat report, total residential sales soared to AED326.7 billion ($88.76 billion) across nearly 99,000 transactions, signalling unprecedented momentum and investor confidence.
Population growth fuels demand
The influx of nearly 90,000 new residents in just the first quarter has added significant pressure to an already supply-constrained housing market. With only 12,000 homes delivered so far this year, demand has swiftly outpaced availability, elevating both sales prices and rental values across key districts.
“The first half of 2025 has surpassed all expectations, reflecting both the resilience and ambition of Dubai’s property sector. We’re not just seeing strong numbers, we’re witnessing a new phase of sophistication in demand. Buyers today are more design-conscious, globally minded, and increasingly leaning toward future-forward communities anchored in lifestyle and long-term value,” said Mohammed Miqdadi, CEO of DURAR Group.
Capital appreciation seen across key areas
While capital values have grown across the board, the villa segment and select prime locations have led the surge in Dubai’s real estate sector. Areas like Jumeirah Islands, Palm Jumeirah and Emirates Hills reached some of the most significant capital appreciation, while apartment hubs such as The Greens and Dubailand also drew consistent demand.
ValuStrat’s June report revealed that villa capital values in Dubai’s real estate sector grew 1.9 percent monthly, down from 2 percent in May, with an annual gain of 28.7 percent. Meanwhile, apartment prices in Dubai’s real estate sector rose by 1.1 percent monthly, recording an annual growth of 19.1 percent.
Off-plan sales, in particular, continue to dominate investor activity, making up over two-thirds of all residential real estate transactions in Dubai during the first half of 2025. With flexible payment structures and compelling new launches in communities like JVC, Dubai South and Emaar South, the appetite for early-entry opportunities remains strong.
“The next wave of success will be defined by how we balance scalability with sustainability, creating homes that respond to the city’s evolving population and anticipate how Dubai will live in the decades to come,” Miqdadi added.
