Dubai Real Estate Market Update: Q2 2025 Insights
The Dubai real estate market has shown robust growth in the second quarter of 2025, marking a continued upward trend from earlier this year. Transaction volumes surged by 25%, totaling 50,485 units sold. This impressive performance solidifies Dubai’s status as a critical real estate hub in the region.
Transaction Growth and Market Position
According to Betterhomes, the second quarter revealed significant gains not just year-on-year but also quarter-on-quarter. The value of real estate transactions increased by 33%, while transaction volumes climbed by 19%. Louis Harding, CEO of Betterhomes, noted, "Dubai’s real estate market maintained its momentum in Q2, with transactions up 25% year-on-year and total value rising 46%."
This stability demonstrates that despite regional instabilities in June, Dubai remains a safe and attractive destination for both lifestyle and capital investments.
Apartment Market Highlights
Apartments were the driving force behind the growth, comprising 80% of all transactions. Over 40,000 apartment units were sold, contributing a staggering AED 81 billion to the market. The segment showed a year-on-year growth of 21% across both secondary and off-plan transactions.
Notably, off-plan sales surged by 30% quarter-on-quarter, with secondary apartments also showing significant increases in value, reaching AED 21.17 billion. Off-plan sales alone totaled AED 60.15 billion, reflecting a 37% year-on-year growth.
Leading Areas for Off-Plan Apartments
Among various neighborhoods, Jumeirah Village Circle (JVC) stood out as the leading area for off-plan apartment transactions, accounting for 12.2% of the total. Following closely were Business Bay (6.4%) and Dubai Residence Complex (5.3%). Two-bedroom apartments were particularly popular, representing 33% of the off-plan transaction value, while one-bedroom units made up 30%.
In the secondary apartment market, JVC again led with 11.2% of transactions, illustrating its growing appeal among buyers.
Villa and Townhouse Performance
The villa market has also seen remarkable growth, with secondary villa and townhouse sales soaring by 80% year-on-year, reaching AED 62.4 billion. This figure marks a 49% increase when compared with the first quarter of 2025. Conversely, off-plan villa and townhouse sales declined slightly, down 2% year-on-year to AED 8.06 billion.
In terms of demand for new units, approximately 20,000 new properties were delivered in the first half of 2025, with an additional 70,000 expected before the year ends. Christopher Cina, Director of Sales at Betterhomes, highlighted the alignment of this new supply with the increasing population and strong investor interest.
Trends in Villa Developments
The Valley emerged as the leader for off-plan villa and townhouse transactions, making up 29.7% of the market in this segment. Townhouses accounted for a significant portion of off-plan value, comprising 75%. For secondary sales, Damac Islands led with 30% of transactions, emphasizing the strong demand for luxury properties.
The average price per square foot for secondary properties is now AED 1,582, marking a growth of 6% compared to the same period last year.
Rental Market Dynamics
The rental market has shown resilience as well, with total rental contracts reaching 107,830, a 2% increase from the previous year. While new rental contracts saw a slight decline, renewed contracts rose by 4%, indicating a stable rental landscape.
Rupert Simmonds, Director of Leasing at Betterhomes, reported a 33% quarter-on-quarter growth in leasing activity, particularly for villas and townhouses, which saw demand increase by 30% and a remarkable 98%, respectively. He noted that the market is well-positioned for continued growth as tenant inquiries remain strong and rental prices are stable.
International Buyer Trends
The demand from international investors has surged, with UK buyers leading the charge. The property market saw a 56% increase in UK buyer activity quarter-on-quarter, making them the top nationality for investments. This trend reflects the broader appeal of Dubai as a long-term investment destination.
As Dubai’s population grows and infrastructure expands, the fundamentals for the real estate market remain strong. Increased competition and more realistic pricing are expected as the market adjusts to new conditions.
This article captures the key details from Q2 2025 of the Dubai real estate market, focusing on transaction trends, performance in various sectors, and the dynamics of the rental market, providing a comprehensive overview without summarizing or adding extraneous content.
