Dubai witnesses 24 real estate ventures valued at AED 4.5 billion during the first half, driven by rising housing demand
In the first half of 2025, Dubai's real estate market has displayed remarkable growth, with property prices surging by 8.4% and transaction volumes exceeding 93,000 units.
The Dubai Land Department reported that property prices rose from AED 1,484 to AED 1,609 per square foot, marking a 16.1% year-on-year increase. This growth was observed across various residential segments, with median prices standing at AED 1.3 million (apartments), AED 2.77 million (townhouses), and AED 8.34 million (villas).
The strong activity in both residential sales and rentals has led to a total residential sales value of approximately AED 151 billion to AED 262 billion, indicating a 22.9%-46% year-on-year increase in volume and value respectively.
Of the completed units, 42.4% were delivered in prime areas such as Jumeirah Village Circle, Mohammed Bin Rashid City, and Sobha Hartland. Additionally, 24 significant projects worth AED 4.5 billion were completed.
Strong investor confidence is evident, with 94,700 investors recorded (a 26% rise year-on-year) including 59,000 first-timers and 45% domestic UAE residents investing.
The luxury segment saw a sharp uptick, especially in Q2 2025, with over 1,400 luxury transactions, a 67% quarter-on-quarter increase, fueled by ultra-high-net-worth buyers purchasing off-plan properties.
Villas were a standout, with over 7,100 sold in H1 worth more than AED 28 billion, showing a trend towards larger standalone homes and premium communities.
The rental market also showed consistent performance in H1 2025, with high transaction volumes, rising prices, and increased demand implying sustained rental market strength aligned with the broader residential market momentum.
The Dubai real estate sector's resilience is attributed to regulatory clarity, digital innovation, and strategic initiatives under the Dubai Real Estate Strategy 2033. This strategy aims to position the city as a global benchmark for quality of life and real estate investment.
The Dubai real estate sector operates in a stable, future-ready ecosystem, with the DLD's commitment including transparency, inclusivity, and investor empowerment, offering opportunities for both individuals and institutional buyers. The development pipeline includes 726 ongoing projects in Dubai.
The strong performance of the Dubai real estate sector supports broader government efforts to encourage residency stability and home ownership, particularly for long-term residents and families. The sector remains one of the key economic drivers in the emirate.
- The strong investor confidence in Dubai's real estate market is evident, with a 26% year-on-year increase in the number of investors, including 45% domestic UAE residents.
- In the luxury segment, there was a sharp uptick in Q2 2025, with over 1,400 luxury transactions, a 67% quarter-on-quarter increase, largely driven by ultra-high-net-worth buyers purchasing off-plan properties.
- Villas were a standout in H1 2025, with over 7,100 sold, amounting to more than AED 28 billion, indicating a trend towards larger standalone homes and premium communities.
- The Dubai real estate sector's resilience is due in part to regulatory clarity, digital innovation, and strategic initiatives under the Dubai Real Estate Strategy 2033, which aims to position Dubai as a global benchmark for quality of life and real estate investment.
