Dubai’s Real Estate Market: A Resilient Snapshot for Q2 2025
In the face of regional unrest, Dubai’s real estate sector has shown remarkable resilience, reinforcing its status as a favored hub for both lifestyle and investment. According to the latest quarterly report by Betterhomes, the market has continued to thrive, maintaining strong momentum.
Steady Growth in Transactions
During the second quarter of 2025, Dubai’s real estate market experienced a notable surge, with transactions escalating by 25% compared to the previous year and total value climbing by an impressive 46%. Louis Harding, CEO of Betterhomes, emphasized the strength of the sector, reporting that even amidst unrest in June, Dubai remained a stable and appealing location for buyers.
Apartments Dominate the Market
Apartments were the driving force behind this impressive performance, representing 80% of all transactions. Over 40,000 units were sold, leading to a sales value of AED 81 billion. The market continues to evolve, as both secondary and off-plan sales witnessed a 21% year-on-year rise.
Off-plan apartment sales saw a significant quarterly increase of 30%. In line with market demand, developers have introduced new projects. Two-bedroom apartments dominated the off-plan segment, constituting 33% of transaction value, while one-bedroom apartments followed closely at 30%, and studio apartments accounted for 10%.
Currently, the average price per square foot for off-plan properties is AED 2,023, showing favorable conditions compared to AED 1,600 for secondary apartments. Neighborhoods such as Jumeirah Village Circle, Business Bay, and Dubai Residence Complex led in off-plan transactions, reflecting diverse investment opportunities.
villa Prices on the Rise
In contrast to the robust performance of secondary apartment sales, the villa and townhouse market painted a mixed picture. Secondary properties experienced a remarkable 66% growth year-on-year, translating to AED 62.4 billion in sales. This marked an 80% increase compared to figures from Q2 2024.
While secondary sales thrived, off-plan villa transactions dipped, down 23% year-on-year and 46% quarter-on-quarter. Notably, The Valley and EMAAR South were key contributors in the off-plan segment, accounting for significant portions of total transactions.
Continuous Price Growth
Average property prices across Dubai reached AED 1,582 per square foot, a 6% increase from the second half of 2024 and a 90% rise from pandemic lows. Off-plan apartment prices have surged to AED 2,023 per square foot, a substantial increase of 12.5% since early 2023. Secondary market prices for apartments also rose, climbing to AED 1,599, up 23%.
In the villa market, secondary prices reached AED 1,557 per square foot, reflecting a quarterly increase of 9%. The demand remains strong, with expectations of over 70,000 new units entering the market by the year’s end.
Luxury Market Thrives
The high-end segment has experienced unprecedented activity, with 1,417 transactions valued at AED 15 million or more completed, marking a staggering 67% increase from the previous quarter and doubling the activity from the same period last year. Secondary luxury properties outperformed off-plan sales, representing 1,153 transactions, a robust 137% year-on-year growth.
Rental Market Shows Consistent Demand
The rental sector also remained active, with 107,830 rental contracts recorded in Q2 2025, up 2% from the previous year. Throughout the first half of 2025, a total of 236,315 rental contracts were registered, indicating consistent demand in comparison to 240,270 during the same period in 2024.
Notably, renewals represented a substantial 60-65% of total contracts, with new leases accounting for around 40%. The leasing landscape also benefited from a 33% quarter-on-quarter growth in transactions, driven by heightened interest in villas and townhouses.
Shifting Trends Among International Buyers
When it comes to international buyer activity, the United Kingdom recently claimed the top position among foreign purchasers at Betterhomes, overtaking previous leader India with a 56% increase in quarter-on-quarter transactions. India and Pakistan maintained their status in the second and third spots, while European countries such as Poland and Ireland gained traction in the rankings.
Dubai’s robust economy, coupled with ongoing population growth—now reaching 4.1 million residents—has strengthened the real estate market. The city’s tourism sector also flourished, with a 7% year-on-year increase in visitor numbers contributing positively to property demand.
Future Outlook
As we look ahead to the latter half of 2025, the fundamentals of Dubai’s property market remain strong, buoyed by an expanding infrastructure and ongoing population growth. With significant new supply on the horizon, the market is poised for ongoing activity and investment opportunities.
