Dubai’s residential property market has reached unprecedented ranges within the second quarter of 2025, with transaction volumes and values each setting new data, in response to evaluation from Knight Frank.
Residential costs climbed 13.7 per cent in comparison with the identical interval final yr, with villas main the expansion at 16 per cent year-on-year, Knight Frank’s Dubai Residential Market Assessment Q2 2025 mentioned.
The emirate recorded over 51,000 house gross sales in Q2 2025, marking the very best quarterly determine on document.
Dubai’s residential market soars greater
Complete gross sales for the primary half of 2025 reached greater than 94,000 transactions, positioning the market to exceed the 169,000 offers accomplished in 2024.
The worth of residential gross sales within the first six months hit AED 268 billion, representing a 41 per cent enhance from the corresponding interval in 2024.
Citywide residential costs rose 3.4 per cent throughout Q2 2025, reaching a median of AED 1,809 per sq. foot. Present values now stand 21.6 per cent above the earlier market peak recorded in 2014.
Faisal Durrani, Associate – Head of Analysis, MENA, mentioned: “The sustained progress in costs – now approaching 5 consecutive years for the reason that present cycle started in November 2020 – is a transparent signal of a extra steady and predictable market atmosphere. That is exactly the type of consistency that international traders search. Knight Frank’s forecasts for 2025 stay unchanged, with 8 per cent progress anticipated within the mainstream market and 5 per cent within the prime section.
“A section to observe stays the villa market. Simply 20 per cent of the deliberate housing provide by way of to the top of 2029 will fall within the villa class and with demand remaining centred on stand-alone household properties, the delta between villa and residence worth efficiency might properly proceed to widen.”
Knight Frank maintains its 2025 forecasts, projecting 8 per cent progress within the mainstream market and 5 per cent within the prime section.
Villa values reached AED 2,172 per sq. foot, marking a 4 per cent quarterly enhance and a 49.3 per cent rise since 2014.
The prime residential section achieved new data, with values throughout ten key communities rising 16 per cent over the previous 12 months. The common prime transacted worth now stands at AED 3,850 per sq. foot.
Off-plan gross sales dominated the market, accounting for practically 70 per cent of all transactions in Q2 2025.
This displays rising investor confidence and the attraction of recent developments throughout Dubai. Prime areas together with Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, and Dubai Hills Property stay essentially the most sought-after areas, notably amongst worldwide high-net-worth people.
Gross sales of properties priced above $10 million reached AED 9.5 billion in Q2 2025, the very best quarterly determine on document.
For the primary time since Q2 2023, flats outpaced villas within the $10 million-plus section, with 80 residence gross sales in comparison with 63 villa transactions.
Will McKintosh, Regional Associate – Head of Residential, MENA, added: “The market is more and more being formed by real consumers slightly than speculators, with resale exercise inside 12 months of buy now at simply 4–5 per cent, in comparison with 25 per cent in 2008. This shift towards end-user exercise is a optimistic indicator of the market’s rising maturity and long-term sustainability.
“As we strategy the fifth yr of Dubai’s present progress cycle in November 2025, we’re seeing the property market mature and align with international norms in a significant means. It has change into extra steady, extra clear and is underpinned by strong fundamentals. This shift is drawing in additional long-term traders and end-users and helps to strengthen Dubai’s place as probably the most enticing residential markets globally.”
Knight Frank’s annual Vacation spot Dubai 2025 report identifies the emergence of “unintentional millionaires” – owners whose properties have appreciated past $1 million as a result of market inflation. As of Q2 2025, Dubai comprises 110,000 such properties, with 37,000 owned by people who initially bought under the million-dollar threshold.
The present progress trajectory positions 2025 to surpass the AED 367 billion in residential gross sales achieved in 2024, with sustained momentum throughout all market segments.
