Dubai’s residential property market recorded Dhs 151.8 billion in total sales during the first half of 2025, according to the latest Shaping Skylines | Q2 2025 Dubai Residential Market report by Betterhomes.
The figure represents a 46% year-on-year rise in value and highlights continued strength in both investor and end-user activity.
The number of units sold also increased, reaching 50,485 transactions, a 25% rise from the same period last year.
Prime deals double
The luxury segment saw strong growth, with 1,417 prime market transactions in Q2—up 67% from Q1. Compared to the same quarter in 2024, this reflects a 113% increase in high-end property activity.
The rise is attributed to sustained demand for ultra-luxury homes, including ready villas and apartments, particularly from overseas buyers and high-net-worth individuals.
New supply surges
Developers delivered 20,000 new residential units in the first half of 2025, with another 70,000 expected by year-end. Longer-term projections indicate over 200,000 new units in the pipeline through 2027.
Key areas contributing to completions include Jumeirah Village Circle (JVC) at 20%, Sobha Hartland at 11%, and Mohammed Bin Rashid (MBR) City at 8%.
Christopher Cina, Director of Sales at Betterhomes, said:
“With approximately 20,000 new units delivered in the first half of 2025 and a further 70,000 expected by year-end, Q3 is shaping up to be an exciting phase for Dubai’s property market. This upcoming supply is well-aligned with the city’s growing population and strong investor appetite.”
Prices remain resilient
Average property prices rose to Dhs 1,582 per square foot, reflecting a 6% increase from the second half of 2024 and 3% growth from Q1 2025. Prices are now 18% higher than Q1 2024 and up 90% compared to pandemic-era lows.
Demand for ready units and off-plan properties remains strong, supported by rental yields and favorable investment conditions.
Investor-led recovery
Investor activity picked up in Q2, accounting for 58% of all transactions, compared to 50% in Q1. End-user participation dropped to 42%, reflecting a shift back toward income-generating purchases.
Cash purchases also rose significantly. Cash buyers made up 52% of transactions in Q2, up from 42% in the previous quarter. Mortgage-backed deals declined to 48%, indicating a more liquid buyer base with faster closing times.
UK leads buyer market
The UK became the top source of buyers in Q2, recording a 56% increase in activity and overtaking India. India and Pakistan followed in second and third place, while Poland entered the top five. Russia dropped out of the top 10 for the first time in years, replaced by Ireland in sixth.
Dubai’s appeal continues to grow among global investors, supported by favorable policies, strong infrastructure, and a maturing property market.
tanvir@dubainewsweek.com
