Dubai’s residential real estate sector recorded 91,900 transactions valued at AED262.1 billion ($71.36 billion) in the first half of 2025, reflecting a growth of 22.9 percent in volume and 36.4 percent in value compared to H1 2024. However, transaction volumes declined slightly by 2.4 percent compared to H2 2024, primarily due to subdued activity in the first quarter.
Nevertheless, the market rebounded strongly in the second quarter, driven by robust demand from both local and international investors as well as end-users, said Cavendish Maxwell in its latest analysis.
“The first six months of the year have highlighted a strong, thriving Dubai real estate market, with robust buyer demand and rising sales. At the same time, we are seeing early signs of moderation in rental price growth – good news for a city focused on attracting new talent and expanding its population,” said Ronan Arthur, MRICS, director and head of residential valuation at Cavendish Maxwell.
17,200 residential units completed in H1 2025
According to the latest statistics from the Dubai Land Department (DLD), Dubai attracted approximately 94,700 investors in the first half of 2025, marking a significant 26 percent increase compared to the same period last year. Of these, around 59,000 were new investors, representing a 22 percent rise year-on-year. Notably, UAE residents accounted for 45 percent of these new investors, highlighting strong local participation in the market.
Alongside increased transaction activity and the rise in investor numbers, the residential supply has also grown. Approximately 17,200 residential units were completed in the first half of 2025, with nearly 42.4 percent of handovers concentrated in Jumeirah Village Circle, Sobha Hartland and Mohammed Bin Rashid City.
Looking ahead, Dubai’s real estate development pipeline remains significant, with over 61,800 units currently under construction for the remainder of the year, and more than 100,000 projected for delivery in 2026 and 2027. However, only 21 percent of the projects scheduled for completion in 2025 have reached 75 percent or more construction progress, indicating potential delays in delivery.
“These projections suggest an average 9,000 units could be delivered every month through to 2027, but actual completion rates are expected to be lower, potentially leading to timeline shifts and delayed handovers. Currently, only 21 percent of projects scheduled for completion have reached 75 percent or more in construction progress, highlighting the possibility of a slippage in delivery timelines,” added Arthur.
“Looking ahead, we anticipate that the market will remain resilient, with new project launches and initiatives like the First-Time Buyer programme encouraging new investors to enter the market. With a steady flow of completions in the pipeline, Dubai’s property sector is poised to evolve into a more mature, balanced phase, creating new opportunities and greater accessibility,” he added.
Residential prices rise 7.8 percent
In terms of prices, strong transactional activity continued to drive real estate sales price growth, with residential prices in Dubai increasing by 7.8 percent compared to H2 2024 and 16.6 percent year-on-year from H1 2024. Over the same period, rental rates rose by 9.9 percent compared to H1 2024 but recorded a marginal decline of 0.6 percent compared to H2 2024, suggesting early signs of moderation in the leasing market.
Dubai’s real estate market is projected to remain robust throughout the remainder of 2025. Momentum is expected to continue if the pace of new project launches is maintained, alongside support from initiatives such as the First-Time Buyer Program and a steady pipeline of residential completions, factors that could help guide the market towards a mature and balanced phase.
“Dubai Land Department’s recently launched First-Time Home Buyer Program will further boost the residential market, particularly among end-users, by making it easier to enter the market and encouraging home ownership. In time, the scheme could also help diversify the buyer base, promote long-term residency and contribute to a more balanced, inclusive housing market,” Arthur added.
Most popular locations revealed
Jumeirah Village Circle topped the sales charts for both off-plan and ready apartments, with more than 8,000 transactions in total, followed by Business Bay with combined off-plan and ready sales reaching almost 5,000.
DAMAC Islands took the top spot for off-plan villa and townhouse sales, with over 3,860 deals secured, followed by Emaar’s The Valley, with more than 1,930 transactions. DAMAC Hills 2 also leads the way on ready villa and townhouse sales, with 500 transactions, with Emirates Living in second place, with just under 360.
Luxury property sales surge over 82 percent
The report also revealed that more than 1,400 luxury properties – those valued at AED20 million or more – were sold in H1 this year, an increase of more than 82 percent on the same period in 2024 and a 62 percent rise on H2 last year, reinforcing Dubai’s position as a magnet for HNWIs.
Meanwhile, the ultra-luxury sector, comprising properties worth AED50 million or above, also saw an uptick in performance, climbing by 33 percent compared to H1 and reaching 140 transactions.
The surge in luxury real estate demand is supported by Dubai’s attractive lifestyle and fiscal advantages: safety, political stability, a favourable tax environment, world-class amenities and investor-friendly visa programs, and reinforces Dubai’s position as a premier destination for global wealth.
