Dubai’s real estate market has recorded a strong first half of the year, with AED260 billion ($70.8 billion) worth of sales transactions completed. This marks a 35 percent increase in the total sales transaction value compared to the same period in 2024, highlighting continued confidence in the city’s property market. However, the standout performer has been the secondary market, which has significantly outpaced the off-plan segment across key indicators, a new report revealed.
Sales transaction value in the secondary market surged by 46 percent year-on-year, compared to a 25 percent increase in the off-plan segment. Average sales prices in the secondary market rose by 15 percent, while off-plan prices increased by just 5 percent. This trend reflects a shift in buyer demand towards ready, quality stock and is being driven primarily by the ongoing shortage of available villas and townhouses across Dubai.
In the first six months of 2025, the Dubai Land Department (DLD) reported a 55 percent increase in total villa and townhouse sales transaction value, compared to a 22 percent increase for apartments. This trend was also reflected in Allsopp & Allsopp data, which recorded a 79 percent rise in total transaction value for villas and townhouses, and a 30 percent increase for apartments.
Strong demand for family homes
While apartments accounted for 78 percent of secondary market transactions by volume, villas and townhouses made up 22 percent, according to the Dubai-based real estate agency.
Villas and townhouses significantly outperformed in terms of price growth and value contribution. This reflects strong buyer appetite for family homes and the limited supply available in the market.
This demand is directly driving price increases, with Allsopp & Allsopp reporting a 49 percent rise in the average sales price for villas and townhouses compared to H1 2024. Communities such as Jumeirah Golf Estates, Arabian Ranches, and Tilal Al Ghaf have led transaction activity, highlighting the enduring appeal of well-established neighborhoods that offer privacy, space, and lifestyle-led amenities.
The shortage of newly built villas and townhouses has also encouraged both investors and homeowners to renovate existing properties. These upgraded homes are achieving premium resale values, with turnkey, move-in ready properties becoming increasingly popular among both end users and investors seeking strong return on investment.
Read more | Dubai real estate: 61,580 new homes expected to be delivered throughout 2025
Premium demand for renovated properties
Commenting on the market performance, Lewis Allsopp, chairman of Allsopp & Allsopp, said, “We have seen a remarkable shift in buyer focus towards the secondary market. With fewer new villas and townhouses entering the market, many buyers are now willing to pay a premium for high-quality, renovated properties in prime communities. In the five to ten million dirham price bracket, we’ve seen a 50 percent increase in sales volume in the first half of the year. Even more impressively, the ultra-luxury segment, above ten million dirhams, has recorded a 113 percent increase in sales volume.”
“This level of activity is a clear sign of growing investor confidence and high-net-worth individuals choosing Dubai not just for lifestyle but for long-term capital growth and return on investment. The secondary market is proving its strength, especially in the villa and townhouse space, where demand continues to outstrip supply,” he adds.
As the city moves into the second half of 2025, Allsopp & Allsopp expects the trend to continue, with the secondary market, particularly in the villa and townhouse segment, remaining the primary driver of market growth, fueled by strong buyer demand and the continued scarcity of new, ready properties.
