The Dubai real estate market saw villa sales leap by 65 percent in total value and 55 percent in volume over the first six months of 2025 compared to the same period last year. Growing investor and buyer interest in the villa sector was highlighted in H1 2025 as sales climbed from AED71.6 billion in value to AED118.5 billion over the first six months last year, built on transaction growth from 13,135 to 20,415.
“The surge in villa transactions across most months this year highlights a growing demand for larger, family-oriented homes, a trend we’ve seen strengthen in recent years. At the same time, we’re witnessing sustained interest in apartments, particularly among investors and younger buyers seeking long-term value and rental yield, and this level of activity underlines consistent investor confidence in Dubai,” said Firas Al Msaddi, CEO of fäm Properties.
Villas record triple-digit growth in three months
A market update by fäm Properties shows that sales for villas and apartments combined rose by 38 percent in value, from AED190.8 billion in H1 2024 to AED262.7 billion in H1 2025. Meanwhile, transaction volumes grew by 22.96 percent, from 76,442 to 93,988 deals.
Data from DXBinteract reveals that H1 apartment transactions were up 16 percent year-on-year, from 63,307 to 73,573. Meanwhile, sales value for apartments climbed 21 percent over the same period, from AED119.2 billion to AED144.2 billion.
In the Dubai real estate market, villas recorded triple-digit growth in three months, including a 118 percent rise in January, 111.5 percent in February, and a 147 percent surge in April, when the total value of villa sales tripled year-on-year from AED7.8 billion to AED24 billion.
April was also a big month for apartments, with transactions up by 42 percent from 9,656 in 2024 to 13,736 in 2025, while sales value grew by 48.47 percent, from AED18.046 billion to AED26.794 billion.
Average monthly villa deals rose from 2,189 in H1 2024 to 3,402 this year, with average value up from AED11.9 billion to AED19.8 billion. On the other hand, apartment deals grew from a monthly average of 10,551 to 12,262, while average monthly value was up from AED19.9 billion to AED24 billion.
Villa prices rise 28.7 percent in June 2025
As demand continues to grow, Dubai’s real estate market is witnessing major price increases across both 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.
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.
Apartment prices in Dubai’s real estate sector also 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.
