Dubai’s residential property market recorded 91,897 sales transactions in the first half of 2025, representing a 23 per cent increase compared to the same period last year, a new report finds.
The market showed continued strength across both off-plan and ready properties, though data suggests the sector is entering a stabilisation phase in established communities, according to Espace Real Estate.
John Lyons, Managing Director at Espace Real Estate, said: “In H1 2025, the Dubai residential real estate market continues to demonstrate remarkable resilience and growth. Transaction volumes remained robust, buoyed by sustained demand for both off-plan and ready properties.”
Dubai property market remains resilient
Off-plan transactions comprised 59 per cent of all residential activity in H1 2025, down from 61 per cent during the same period in 2024.
The report noted that 17,013 off-plan units were completed during the first half of the year, adding to rental stock availability.
The increase in new supply has contributed to moderation in rental price growth across the market, particularly in newly handed-over communities.
Many established communities recorded lower levels of transactional activity, though both rental and capital values continued rising.
The report identified a shift in resident behaviour, with more people viewing Dubai as a long-term home rather than a short-term expat base. This change is supporting market stability and contributing to more measured growth.
Properties priced above AED 20 million recorded the largest increase in transaction activity both year-on-year and compared to H2 2024.
Changes to non-dom tax regulations in the UK have prompted many ultra-wealthy UK residents to relocate to Dubai.
Villa and townhouse communities showed strong price appreciation, with 19 out of 20 tracked communities recording price increases.
The average rise stood at 19 per cent, driven by limited supply within this segment.
Average selling prices increased in 10 out of 11 apartment communities tracked, though at a more moderate pace than in H1 2024.
The average increase was 8 per cent in H1 2025 compared to 17 per cent during the same period last year.
Rental activity declined slightly in tracked communities due to greater availability across the market. While prices continued rising, the handover of new communities is helping balance demand with supply, preventing rental price increases from accelerating further.
Buyer activity continues to highlight Dubai’s appeal to international investors. While the UK remains the top source of investors, there is growing interest from across Europe, North America, and Asia Pacific.
The report suggests the current moderation may contribute to more sustainable long-term growth for Dubai’s property sector as market conditions evolve.
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