Dubai’s residential property market continues to break records, with Q2 2025 marking a historic peak in both transaction volumes and values. According to the latest analysis from global property consultancy Knight Frank, residential prices have surged 13.7 percent compared to a year ago, with villas leading the way—up 16 percent year-on-year.
The total value of residential sales in H1 reached AED268 billion, marking a 41 percent increase from the same period last year. With this momentum, 2025 is poised to exceed the AED367 billion achieved in 2024.
Dubai’s vibrant market is experiencing ongoing growth, showing no signs of a slowdown in activity. In Q2, the city recorded over 51,000 home sales—the highest quarterly figure ever recorded. This brings total H1 2025 sales to more than 94,000, positioning the market firmly on track to surpass the 169,000 transactions recorded in 2024.
Read more: Dubai real estate prices rise 23.9 percent in Q2 2025 as sales hit record highs
Consistency attracting investors
Citywide residential prices rose by 3.4 percent in Q2 2025, reaching an average of AED1,809 per square foot. This currently places values 21.6 percent above the previous market peak recorded in 2014.
Faisal Durrani, partner and head of research, MENA, stated: “The sustained growth in prices—now approaching five consecutive years since the current cycle began in November 2020—is a clear sign of a more stable and predictable market environment. This is precisely the kind of consistency that global investors seek. Knight Frank’s forecasts for 2025 remain unchanged, with 8 percent growth expected in the mainstream market and 5 percent in the prime segment.”
A segment to monitor remains the villa market. Just 20 percent of the planned housing supply through to the end of 2029 will fall within the villa category. With demand centered around stand-alone family homes, the gap between villa and apartment price performance may continue to widen.
Villas have continued to outperform the broader market, with values climbing to AED2,172 per square foot—a 4 percent increase over the quarter and a 49.3 percent rise since 2014. The prime segment has also reached new heights, with prime residential values across ten key communities rising by 16 percent over the past 12 months. The average prime transacted price now stands at AED3,850 per square foot.
Off-plan dominance
Off-plan sales account for nearly 70 percent of all transactions in Q2, reflecting growing investor confidence and the appeal of new developments across the city. Prime residential areas such as Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, and Dubai Hills Estate remain the most sought-after locations, especially among international high-net-worth individuals.
Sales of homes priced above $10 million reached AED9.5 billion in Q2 2025, the highest quarterly figure on record. Notably, for the first time since Q2 2023, apartments outpaced villas in the $10 million+ segment, with 80 apartment sales compared to 63 villas.
Will McKintosh, regional partner—head of Residential, MENA, remarked: “The market is increasingly being shaped by genuine buyers rather than speculators, with resale activity within 12 months of purchase now at just 4–5 percent, compared to 25 percent in 2008. This shift toward end-user activity is a positive indicator of the market’s growing maturity and long-term sustainability.”
As we approach the fifth year of Dubai’s current growth cycle in November 2025, we are witnessing the property market mature and align with global norms in a meaningful way. It has become more stable, more transparent, and is underpinned by solid fundamentals. This transformation is attracting more long-term investors and end-users, further strengthening Dubai’s position as one of the most appealing residential markets globally.
Knight Frank’s annual Destination Dubai 2025 report also highlights the emergence of ‘accidental millionaires’—homeowners whose properties have appreciated beyond $1 million due to market inflation. As of Q2 2025, there are 110,000 such homes in Dubai, with 37,000 owned by individuals who originally purchased below the million-dollar threshold.
