Dubai’s residential property market continued its impressive performance into the first half of 2025, building on the strong momentum seen throughout 2024.
According to the latest H1 2025 Residential Market Report by Property Monitor — part of Dubizzle Group — both prices and transaction volumes remained elevated across segments, with sustained interest in both off-plan and resale properties.
Read: Dubai real estate: Off-plan market surges 43 percent in Q2 2025 with $16.4 billion sales
Property prices surge over 8 percent in six months
The Property Monitor Dynamic Price Index (DPI) reported an 8.43 percent increase in average property prices between January and June 2025. Prices rose from AED 1,484 per square foot at the start of the year to AED 1,609 per square foot by the end of H1. Year-over-year, this marks a 16.1 percent increase compared to the same period in 2024.
Median prices by property type in H1 2025 stood at:
- Apartments: AED 1,300,000
- Townhouses: AED 2,770,500
- Villas: AED 8,345,000
The period also witnessed several high-value transactions, including a record-breaking AED 425 million villa sale in Emirates Hills (Sector E), an AED 14.9 million townhouse in Keturah Reserve (District 11), and an AED 81.4 million apartment at Orla on Palm Jumeirah.
Transaction volumes reflect sustained market strength
A total of 93,314 residential sales transactions were recorded in H1 2025, reflecting a minor 1.3 percent dip compared to H2 2024, but a robust 24.3 percent year-on-year increase. Apartments led transaction volumes, accounting for 77.4 percent, followed by townhouses (15.4 percent) and villas (7.1 percent).
Off-plan sales dominate market share
Off-plan (Oqood) transactions surged to 54,785, representing a 20.4 percent year-over-year increase. These accounted for 58.7 percent of all residential sales in H1 2025.
When including title-deed-issued but under-construction properties, the off-plan market share jumps to 70.5 percent, underscoring strong appetite for newly launched projects.
Resale market expands, led by under-construction properties
Resale activity also gained ground, with 33,721 resale transactions completed in H1 2025, up 19.2 percent year-on-year. Notably, 29.4 percent of these resales were for under-construction properties — a new record — pointing to heightened speculative activity and increased liquidity within the off-plan segment.
Mortgage market remains robust
Residential lending remained healthy, with 20,981 mortgage loans issued during the first half of 2025, an increase of 36.7 percent compared to H1 2024. While slightly below the all-time high seen in H2 2024, the average loan size rose to AED 1.88 million, and the average sales price of mortgaged homes climbed to AED 2.49 million, indicating continued end-user demand for higher-value assets.
Zhann Jochinke, COO of Property Monitor, commented: “Dubai real estate market continues to mature at pace, with notable growth across both off-plan and resale segments. The data clearly shows rising confidence from end-users and investors alike — but what stands out this half is the sharp increase in off-plan resales. This reflects growing liquidity in the market, and it’s a trend we’ll be watching closely as it may signal evolving buyer expectations and a more sophisticated investor profile emerging across the sector.”
Outlook: Balancing growth with sustainability
While the report highlights strong fundamentals across Dubai’s property market, it also notes the increasing volume of off-plan resales as a sign of evolving buyer behavior — particularly shorter holding periods.
Analysts caution that developers must carefully manage new supply and pricing to prevent overheating. A balanced approach emphasizing sustainable growth, diverse product offerings, and transparency will be essential to maintaining long-term investor and buyer confidence heading into 2026.
