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Dubai Real Estate Market Report Q2 2025: Key Trends, Insights, and Forecasts
The Dubai real estate market made history in Q2 2025, with record-breaking performance across sales volume, property value, and project launches. Fuelled by strong investor confidence, a thriving off-plan sector, and sustained interest from international buyers, Dubai’s residential landscape continues to evolve into one of the most dynamic markets globally.
Market Snapshot: A Quarter to Remember
In just three months, Dubai recorded 50,593 property transactions totaling AED 170.5 billion in value. That’s a 15% increase in volume and a 27% surge in transaction value compared to the previous quarter. These are the highest figures the city has ever seen in a single quarter.
The average price per square foot across the city reached AED 1,793, with standout deals like a 6-bedroom villa in Palm Jumeirah’s EOME community selling for an astonishing AED 300 million.
A Strong Shift Toward Off-Plan Properties
Off-plan properties dominated this quarter’s activity, making up 59% of all residential transactions. A total of 29,611 off-plan sales were registered, generating over AED 67.8 billion. Developers such as Emaar, Binghatti, and Sobha Group led the rankings in both volume and value.
Interestingly, off-plan homes commanded higher prices, with the average reaching AED 1,983 per square foot, while ready properties averaged AED 1,603 per square foot. This shows growing buyer interest in new, well-designed, and energy-efficient developments.
Ready Market Still Holding Strong
Despite the dominance of off-plan sales, the secondary (ready) market performed exceptionally well too. With 20,982 transactions totaling AED 102.7 billion, established communities like Dubai Marina, Business Bay, and Jumeirah remained hot spots for both end-users and investors.
What’s Selling in Dubai Right Now?
Apartments continued to lead the market:
- 78% of all sales were apartments, averaging AED 1,896/sq.ft
- Villas and townhouses made up 19%, priced around AED 1,518/sq.ft
- Hotel apartments fetched the highest rates, averaging AED 2,318/sq.ft
These trends reflect the diverse preferences of buyers and the increasing sophistication of Dubai’s residential inventory.
Financing: The Mortgage Surge
For the first time in recent memory, the market saw an even split between cash and mortgage buyers:
- 52% of all deals were financed via mortgage
- 48% were completed with cash
This balance indicates increased end-user participation and a more stable, finance-driven environment.
Leasing Market in Q2 2025
Demand for rentals remains strong. Over 109,000 lease agreements were signed in Q2 2025, totaling AED 9.59 billion in annual rent value. Median annual rents were:
- Studio: AED 40,029
- 1 Bedroom: AED 60,192
- 2 Bedroom: AED 85,146
- 3 Bedroom: AED 141,625
- 4 Bedroom: AED 240,662
The majority of leases were new contracts, suggesting an influx of new residents and relocations within the city.
Spotlight on Luxury: Prime Properties in Demand
Dubai’s ultra-luxury segment continues to shine:
- Most expensive apartment: AED 170M at Peninsula Dubai Residences
- Most expensive villa: AED 300M at EOME, Palm Jumeirah
Communities such as Jumeirah Bay Island, La Mer, and Jumeirah 2 topped the charts for price per square foot, regularly exceeding AED 10,000.
What’s Coming Next: Future Supply Pipeline
Dubai is not slowing down. Over 281,000 new units are in the pipeline, with the biggest influx expected in:
- 2026: 83,344 units
- 2027: 73,087 units
Key communities for future handovers include:
- Jumeirah Village Circle (JVC) – 24,225 units
- Business Bay – 16,360 units
- Dubai Hills Estate – 10,528 units
While apartments will make up most of the new supply, demand for spacious villas and branded residences continues to grow.
Final Thoughts at a Glance
The momentum in Dubai’s residential market is undeniable. With record-breaking sales, increasing rental activity, and strategic development across key communities, the city continues to position itself as a global real estate powerhouse. If this pace continues, the second half of 2025 could surpass even the most optimistic forecasts.
