Dubai Real Estate Q2 2025 Snap shot
July 10, 2025
KEY TRENDS OF H1 2025 – DUBAI REAL ESTATE
Dubai’s Real Estate Market in 2025: Maturing, Resilient, and Still Booming
Dubai’s property sector continues to evolve with strong fundamentals and shifting buyer behavior. Here’s what’s shaping the market right now:
📈 Key Trends in H1 2025
- Sales Surge: Over 91,000 transactions in H1 2025, up 23% YoY, showing sustained demand across both off-plan and ready segments.
- Villa Dominance: Villas and townhouses saw up to 11% price growth, especially in communities like DAMAC Hills 2 and Dubai South.
- Off-Plan Strength: Off-plan accounted for 59% of residential activity, with 17,000+ units completed, easing rental pressure.
- Luxury Momentum: Properties priced above AED 20M saw the largest spike in activity, driven by ultra-high-net-worth buyers relocating from the UK and Europe.
🏡 Buyer Behavior Shifts - Long-Term Living: More residents now view Dubai as a permanent home, not just a transient expat base.
- Mid-Market Focus: Communities like JVC, Business Bay, and Arabian Ranches 3 remain popular among mid-tier buyers.
- ROI Hotspots: Affordable apartments in International City and DIP yield 9–11%, while luxury villas in DAMAC Lagoons hit 9.46% ROI.
🌍 Global Investor Appeal - UK Tax Changes: New non-dom rules in the UK are pushing wealthy individuals to invest and relocate to Dubai.
- Currency Advantage: AED-denominated assets remain attractive to foreign investors seeking stability and high returns.
🔮 Market Outlook
The market is entering a stabilization phase in mature communities, but new supply and infrastructure projects (like the Dubai Metro Blue Line and Palm Jebel Ali) are fueling growth in emerging areas. Analysts expect measured price appreciation and sustainable long-term growth.
