Around 300 new residential projects were launched in Dubai in the first half of 2025, adding nearly 88,000 new units to the market, according to a report by real estate consultancy Cavendish Maxwell.
Apartments accounted for 86% of the new launches.
During the same period, 17,200 residential units were completed, with almost half of all handovers taking place in Jumeirah Village Circle, Sobha Hartland, and Mohammed Bin Rashid City.
Sales value and volumes
Residential property sales reached Dhs262 billion across 91,900 transactions between January and June, marking a 36.4% increase in value and a 23% rise in volume compared to the same period in 2024. Most transactions — over 70% — were for off-plan properties.
While off-plan sales dropped slightly from the second half of 2024 due to fewer launches and seasonal factors, demand for ready properties increased. The first half saw 27,400 ready home transactions, up 10% year-on-year, with 14,200 of those recorded in Q2 alone — a record high for that period.
Property types and buyer trends
One-bedroom apartments remained the most popular choice in both off-plan and ready markets. Studios gained traction in the off-plan segment, reaching nearly 25% of transactions. Villas and townhouses also saw increased demand, especially for larger units. Off-plan four-bedroom homes made up 55% of sales in that category.
In the ready segment, three- and four-bedroom units dominated, while five-bedroom sales grew to nearly 13% of total transactions, showing continued interest in spacious family homes.
Market prices and rental trends
Residential prices rose by 16.6% year-on-year to an average of Dhs1,609 per square foot. Areas with notable growth included Discovery Gardens, Al Furjan, and Dubai Marina, while slight price declines were seen in Barsha Heights and Palm Jumeirah.
Rental prices increased nearly 10% year-on-year but dipped by 0.6% compared to H2 2024 due to rising supply. Of the 244,000 rental contracts signed in H1, about 67% were renewals. Gross rental yields stood at 7.2% for apartments and 5% for villas and townhouses.
Top-yielding areas for apartments included Dubai Investments Park (10.3%) and International City (8.8%). For villas, Dubai Industrial City led with a 7% return.
Leading developers and top locations
Emaar, DAMAC, and Sobha remained the top-performing developers, with strong sales at The Valley, DAMAC Islands, and Sobha Solis. Other notable developers included Binghatti, Danube, and Beyond.
Jumeirah Village Circle recorded the highest number of apartment sales. For villas and townhouses, DAMAC Islands led off-plan sales, while DAMAC Hills 2 topped the ready segment.
Growth in luxury market
More than 1,400 homes valued at Dhs20 million or above were sold in H1 — an 82% increase from the same period in 2024. The ultra-luxury segment, comprising properties priced at Dhs50 million or more, also grew by 33%.
Cavendish Maxwell noted that Dubai continues to attract high-net-worth individuals due to its lifestyle, tax benefits, and investor visa programmes.
Outlook for 2025 and beyond
Despite the large pipeline of projects, only 21% of those scheduled for 2025 completion have reached 75% construction progress, indicating potential handover delays. Over 61,800 units are currently under construction for delivery later this year, with more than 100,000 targeted for 2026 and 2027.
Ronan Arthur, Director and Head of Residential Valuation at Cavendish Maxwell, said: “The first six months of the year has 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.”
He added: “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.”
tanvir@dubainewsweek.com
