Dubai’s property market has shown impressive growth, recording a total sales value of AED151.8 billion in the second quarter of 2025, marking a substantial 46 percent year-on-year increase. Transaction volumes also surged by 25 percent, reaching 50,485 units, as reported in the quarterly review by Betterhomes Shaping Skylines.
This growth trend follows a strong first quarter, contributing to a quarter-on-quarter increase of 33 percent in value and 19 percent in volume. Such performance solidifies Dubai’s status as a vital property hub in the region.
According to Louis Harding, CEO at Betterhomes, the resilience of Dubai’s real estate market is evident, particularly in the context of regional challenges, demonstrating its appeal as a stable destination for both capital and lifestyle buyers. The apartment sector was notably active, accounting for 80 percent of total transactions. This segment saw the sale of over 40,000 units, generating AED81 billion in sales value. The growth in this area included a 21 percent rise in sales across both secondary and off-plan markets.
In the off-plan sector, apartment sales jumped significantly, with a quarter-on-quarter increase of 30 percent compared to the previous quarter. Jumeirah Village Circle stood out as the leading area for off-plan apartments, contributing 12.2 percent of total transactions.
Interestingly, secondary villa and townhouse sales experienced even more remarkable growth, jumping by 80 percent year-on-year to reach AED62.4 billion. The secondary market exhibited a 49 percent quarter-on-quarter increase as well. However, off-plan sales for villas and townhouses showed a slight decline, reflecting a shift in buyer preference towards ready properties.
As the market continues to grow, approximately 20,000 new units have already been delivered in the first half of 2025, with an additional 70,000 expected by year’s end. This influx aligns positively with Dubai’s growing population and robust investor interest.
The demand for rental properties remains strong, with Betterhomes reporting a 33 percent quarter-on-quarter increase in leasing activity, particularly for villas and townhouses. The city has seen total rental contracts rise to 107,830 in Q2 2025, demonstrating the ongoing need for housing in light of Dubai’s expanding population, which has increased to 4.1 million residents.
With a optimistic outlook, economic forecasts indicate a growth in GDP from 3.8 percent in 2024 to projections of 4.2 percent in 2025 and 5 percent in 2026. International interest remains high, especially from UK buyers, who have increased their investments in Dubai real estate by 56 percent quarter-on-quarter.
Overall, the Dubai property market is not only recovering but thriving, with strong fundamentals that suggest a bright future ahead for both buyers and investors alike.