Average Dubai property prices rise 3% quarter on quarter

21/07/2025 01:14 AST

Average property prices in Dubai climbed to Dh1,582 per square foot in the first half of 2025, data showed.

According to the latest report from Betterhomes, Shaping Skylines | Q2 2025 Dubai Residential Real Estate Market, this represents a 6 per cent increase compared to the second half of 2024 and a 3 per cent rise quarter-on-quarter from Q1 2025. Prices now stand 18 per cent higher than in Q1 2024 and a notable 90 per cent above the pandemic-era lows of Dh833.

Dubai's real estate sector continues its record-breaking trajectory in 2025, confirming the city's growing global real estate stature.

With a growing population, investor-friendly policies, and a development pipeline that continues to deliver, Dubai is well-positioned for sustained growth in the years ahead, analysts say.

Total residential sales in Dubai reached Dh151.8 billion in the first half of 2025, marking a 46 per cent year-on-year increase in value. Transaction volumes saw a 25 per cent uptick, with 50,485 units sold. Compared to the previous quarter, the market grew by 33 per cent in value and 19 per cent in volume, demonstrating sustained momentum building on Q1's performance.

The prime market witnessed 1,417 transactions, marking a 67 per cent quarter-on-quarter increase from 851 deals in Q1. On an annual basis, activity has more than doubled, reflecting a remarkable 113 per cent year-on-year growth, underscoring the booming appetite for ultra-luxury real estate in Dubai.

Supply growth remains strong, signalling ongoing developer confidence. Over 20,000 new units were delivered in the first half of 2025, with another 70,000 expected in the second half of the year. Looking further ahead, more than 200,000 additional units are in the pipeline through 2027. JVC led completions with 20 per cent.

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. Demand remains robust, particularly for apartments and ready villas, with healthy absorption of new launches. Both Q3 and the second half of 2025 are expected to reflect positive market sentiment, supported by a resilient economy, sustained end-user demand, and attractive rental yields."

Betterhomes data showed investor activity picked up in Q2 2025, accounting for 58 per cent of transactions, up from 50 per cent in Q1. End-user activity dropped to 42 per cent, as investors returned for rental yields and capital gains, reversing the more balanced split seen earlier this year.

A significant shift in financing trends was witnessed in Q2. The market moved notably toward cash purchases, with cash transactions rising to 52 per cent in Q2 2025, up from 42 per cent in Q1. Mortgage-backed deals declined to 48 per cent, signalling a more liquid buyer pool led by high-net-worth individuals, international investors, and buyers seeking quicker closings.

The UK now leads buyer activity, overtaking India with a 56 per cent jump this quarter. India and Pakistan maintained strong positions at second and third, respectively, while Poland entered the top five. Russia slipped out of the top 10 for the first time in years, making space for Ireland at sixth.

Khaleej Times