Dubai’s Residential Real Estate Market Continues Upward Trajectory, Property Monitor Reports

Dubai’s residential property market delivered a robust performance in the first half of 2025, maintaining the strong momentum seen in 2024. According to the latest H1 2025 Residential Market Report from Property Monitor, part of the Leading Homegrown Unicorn, Dubizzle Group, prices and transaction activity remained elevated across the board, with continued demand in both the off-plan and resale segments.

The Property Monitor Dynamic Price Index (DPI) recorded an 8.43% increase in property prices between January and June, with the average price reaching AED 1,609 per sq ft, up from AED 1,484 at the start of the year. On a year-over-year basis, prices are up 16.1% compared to H1 2024.

In terms of median prices by property type, apartments were recorded at AED 1,300,000, townhouses at AED 2,770,500, and villas at AED 8,345,000 in H1 2025. The half also saw several standout, high-value transactions, including a record-breaking AED 425 million villa sale in Emirates Hills (Sector E), a AED 14.9 million townhouse in Keturah Reserve, District 11, and an AED 81.4 million apartment at Orla on Palm Jumeirah.

Transaction Activity Remains Strong

A total of 93,314 residential sales transactions were recorded in H1 2025; slightly down (-1.3%) from H2 2024 but up 24.3% YoY, indicating continued market strength. Apartments led transaction volumes at 77.4%, followed by townhouses (15.4%) and villas (7.1%).

Off-Plan Market Growth Continues

Off-plan (Oqood) transactions surged to 54,785, up 20.4% YoY, now representing 58.7% of all residential sales. When accounting for title-deed-issued yet under-construction properties, off-plan market share increases to 70.5%, indicating sustained demand for new launches.

Resale Activity Expands

Resale transactions totaled 33,721, up 19.2% YoY. Notably, 29.4% of these were for under-construction properties, a record high, suggesting increased speculative activity and a maturing resale market within the off-plan segment.

Mortgage Market Stays Resilient

Residential lending remained solid, with 20,981 loans issued in H1 2025, up 36.7% YoY and just shy of the all-time high in H2 2024. The average loan amount rose to AED 1.88M, while the average sales price of mortgaged homes reached AED 2.49M, reflecting continued end-user demand for higher-value assets.

ZhannJochinke, COO of Property Monitor, commented: “Dubai real estate market continues to mature at pace, with notable growth across both off-plan and resale segments. The data clearly shows rising confidence from end-users and investors alike — but what stands out this half is the sharp increase in off-plan resales. This reflects growing liquidity in the market, and it’s a trend we’ll be watching closely as it may signal evolving buyer expectations and a more sophisticated investor profile emerging across the sector.”

Outlook: Sustainable Growth Key to Long-Term Confidence

The report cautions that while fundamentals remain strong, the increasing share of off-plan resales could signal evolving buyer behavior toward shorter holding periods. Developers are advised to carefully manage supply and pricing to avoid overheating. Maintaining a measured pace of growth, product variety, and transparency will be critical to supporting long-term market confidence well into 2026.