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Dubai real estate market hit $41.3bn in Q2 2025 as prime sales surge 113 per cent

Dubai’s real estate market hit $41.3bn in H1 2025, with prime sales up 113 per cent and investors dominating deals. Find out which areas are booming and who’s buying…

Dubai's Real Estate

Dubai’s property boom shows no signs of slowing down. In the second quarter of 2025 alone, real estate sales hit a record-breaking AED151.8bn ($41.3bn), driven by rising investor demand and surging prime market transactions.

It marks a 46 per cent year-on-year surge in Q2 2025, according to the Betterhomes Q2 2025 Dubai Residential Real Estate Market report.

Transaction volumes climbed 25 per cent year-on-year, reaching 50,485 units sold, while quarter-on-quarter growth hit 33 per cent in value and 19 per cent in volume, underlining the emirate’s enduring global appeal and robust investor sentiment.

Dubai prime real estate growth

The prime residential market stood out, recording a record 1,417 transactions in Q2, up from 851 in Q1—a 67 per cent quarter-on-quarter increase and an eye-catching 113 per cent year-on-year gain.

This dramatic rise signals a booming appetite for ultra-luxury homes among global high-net-worth buyers.

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.”

More than 20,000 new residential units were completed in Q2 2025, with a further 70,000 expected by year-end.

More than 200,000 more homes are in the development pipeline through 2027. JVC led completions with 20 per cent, followed by Sobha Hartland (11 per cent) and MBR City (8 per cent).

Dubai's Real Estate
Dubai’s Real Estate Strategy 2033 aims to increase housing supply and homeownership to 33 per cent whilst doubling the sector’s contribution to GDP. Image: Shutterstock

Dubai real estate prices

Prices continue to edge upward, with the average price per square foot now AED1,582 ($431)—a 6 per cent increase compared to H2 2024, and 90 per cent higher than pandemic-era lows of AED833 ($227).

Investor transactions rose to 58 per cent in Q2, up from 50 per cent in Q1, while end-user share fell to 42 per cent.

The market also saw a significant shift towards cash purchases, now accounting for 52 per cent of all deals, up from 42 per cent in Q1.

Mortgage-backed transactions dropped to 48 per cent, reflecting a liquidity-driven market led by global investors and faster deal cycles.

The UK overtook India as the top buyer nationality, with a 56 per cent quarterly increase in activity.

India and Pakistan held second and third positions respectively, while Poland entered the top five and Ireland debuted at sixth, replacing Russia for the first time in years.

Dubai’s market continues to draw a global and increasingly diverse buyer base, reinforcing its position as one of the world’s most sought-after property destinations.

Luxury Dubai properties above AED20 million see biggest transaction growth in H1 2025
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. Image: Shutterstock

Dubai real estate highlights Q2 2025

MetricQ2 2025Change vs. 2024
Total sales volumeAED 151.8 billion ($41.3 billion)Up 46% YoY
Units sold50,485Up 25% YoY
Prime transactions1,417 dealsUp 113% YoY
Average price/Sq ftAED 1,582 ($431)Up 6% H2 2024, Up 90% since COVID lows
New units delivered20,00070,000 more expected in H2
Top completion areasJVC (20%), Sobha Hartland (11%), MBR City (8%)
Investor share58%Up from 50% in Q1
Cash transactions52%Up from 42% in Q1
Top buyer nationalityUnited KingdomUp 56% Q2 vs. Q1

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