Dubai’s real estate sector continues to witness record-breaking growth across key segments, with the first half of 2025 reaching new highs of 98,603 property sales worth AED326.7 billion ($88.95 billion).
As demand continues to grow, the sector is witnessing major price increases across apartments and villas. In June, capital growth continued at a slightly slower pace, with more locations surpassing previous price peaks. Transaction volumes declined monthly, and ready sales account for less than 30 percent of total activity.
June 2025 saw the ValuStrat Price Index achieve 220.8 points, marking a 1.5 percent monthly increase, down from 1.6 percent in May, and a 23.9 percent rise since June last year. Villa values climbed to 291.6 points, while apartments reached 174.7 points, all benchmarked to a base of 100 points in January 2021.
Villa, apartment prices continue to rise
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. The strongest annual performers included villas in Jumeirah Islands (41.1 percent), Palm Jumeirah (40.5 percent), Emirates Hills and The Meadows, both at 27.5 percent.
Meanwhile, the lowest annual gains were recorded in Mudon at 8.1 percent. Dubai’s freehold villas are, on average, valued at 180 percent above post-pandemic levels.
Meanwhile, apartment prices in Dubai’s real estate sector rose by 1.1 percent monthly, recording an annual growth of 19.1 percent. The highest yearly capital gains were seen in The Greens at 24.4 percent, Dubai Silicon Oasis at 23.4 percent, Dubailand Residence Complex at 23.3 percent, Palm Jumeirah at 22.9 percent, and Town Square at 22.4 percent.
In contrast, the lowest capital value increases were recorded in International City at 11.2 percent and Business Bay at 15.8 percent. Apartment valuations in Dubai are, on average, 73 percent higher than post-pandemic levels.
Off-plan homes account for 73.4 percent of sales
Oqood registrations for off-plan homes in Dubai declined 8 percent monthly but were 60.1 percent higher annually, accounting for 73.4 percent of total residential sales. Meanwhile, ready secondary-home transactions dropped 14.3 percent since May, but were 11 percent higher on an annual basis.
The report also revealed that there were 40 transactions for ready properties priced over AED30 million, 15 of which were priced over AED50 million. These properties were located in DIFC, Palm Jumeirah, Arabian Ranches, Jumeirah Golf Estates, Dubai Hills Estate, Jumeirah Park, Al Barari and Downtown Dubai.
Read| Dubai real estate: $10 million+ home market breaks records with $2.6 billion sales in Q2 2025
Top transacted locations in June
Top off-plan locations transacted in Dubai’s real estate sector last month included projects in Jumeirah Village Circle, Dubai Investment Park Second, Uptown Motorcity, Damac Island City and Business Bay. Both Dubai Silicon Oasis and Uptown Motorcity broke their individual records with the highest number of off-plan homes traded in one month.
Meanwhile, the majority of ready home sales were concentrated in Jumeirah Village Circle at 9.2 percent, Business Bay at 5.5 percent, Dubai Marina at 4.9 percent, Downtown Dubai at 4 percent, and DIFC at 3.9 percent.
In Q2 2025, the top five performing areas were Jumeirah Village Circle, with 4,930 transactions worth AED6.47 billion, Business Bay with 3,143 transactions worth AED10.05 billion, and Al Yelayiss 1, with 2,867 transactions worth AED9.08 billion. The top five also includes Wadi Al Safa and Dubai South, according to fäm Properties.
