The market demonstrated resilience throughout June’s regional unrest, reinforcing Dubai’s place as a vacation spot for each capital and way of life patrons, in response to Betterhomes’ newest quarterly report.
“Dubai’s actual property market maintained its momentum in Q2, with transactions up 25 per cent year-on-year and whole worth rising 46 per cent. Flats and off-plan led exercise, whereas the posh phase hit file highs. Even throughout June’s regional unrest, the market remained resilient; reinforcing Dubai’s place as a protected, secure vacation spot for capital and way of life patrons alike,” Louis Harding, Chief Government Officer of Betterhomes mentioned.
Flats drive 80% of Dubai property market as off-plan gross sales bounce 30% in Q2 2025
Flats accounted for 80 per cent of all transactions with over 40,000 items bought, producing AED81 billion in gross sales worth. The sector continued development with each secondary and off-plan transactions rising 21 per cent year-on-year.
Off-plan condo gross sales elevated 30 per cent quarter-on-quarter, with builders launching new initiatives to satisfy market demand. Two-bedroom flats contributed 33 per cent of off-plan transaction worth, whereas one-bedroom flats made up 30 per cent and studios 10 per cent.
The typical value per sq. foot for off-plan transactions stood at AED2,023, in comparison with AED1,600 for secondary flats.
Jumeirah Village Circle led off-plan condo transactions with 12.2 per cent of the whole, adopted by Enterprise Bay at 6.4 per cent and Dubai Residence Advanced at 5.3 per cent.
Dubai villa costs soar 90% above pandemic lows
The villa and townhouse phase recorded contrasting efficiency between secondary and off-plan gross sales. Secondary properties noticed 66 per cent development year-on-year and 23 per cent quarterly development, whereas off-plan villa transactions declined 23 per cent year-on-year and 46 per cent quarter-on-quarter.
Secondary villa and townhouse gross sales reached AED62.4 billion, up from AED34.6 billion in Q2 2024, representing an 80 per cent year-on-year enhance.
“With roughly 20,000 new items delivered within the first half of 2025 and an extra 70,000 anticipated by year-end, Q3 is shaping as much as be an thrilling section for Dubai’s property market,” Christopher Cina, Director of Gross sales at Betterhomes mentioned.
The Valley accounted for 29.7 per cent of off-plan villa and townhouse transactions, adopted by EMAAR South with 15.5 per cent. 4-bedroom properties represented 49 per cent of off-plan transaction worth on this phase.
Worth development continues throughout segments
Dubai’s citywide common property value reached AED1,582 per sq. foot, representing a 6 per cent enhance in comparison with the second half of 2024 and standing 90 per cent above pandemic-era lows of AED833.
Off-plan condo costs recovered to AED 2,023 per sq. foot in Q2 2025, marking a 12.5 per cent enhance since early 2023. Secondary condo costs rose extra persistently, climbing 23 per cent over the identical interval to AED 1,599.
Villa and townhouse costs confirmed energy, with secondary market costs reaching AED1,557 per sq. foot (up 9 per cent quarter-on-quarter) and off-plan costs at AED1,368 per sq. foot (up 4 per cent quarter-on-quarter).
Over 20,000 residential items had been delivered within the first half of 2025, with 70,000 further items anticipated within the second half. The supply pipeline extending into 2026 and 2027 contains over 200,000 items.
Jumeirah Village Circle led group handovers in H1 2025, accounting for 20 per cent of whole completions with over 4,130 items. Sobha Hartland adopted with 2,200 items (11 per cent) and Mohammed Bin Rashid Metropolis with 1,600 items (8 per cent).
Over 1,300 villas and three,000 townhouses had been delivered in H1 2025, already surpassing half of 2024’s whole deliveries. An extra 3,800 villas and 9,000 townhouses are anticipated in H2 2025.
Luxurious market reaches file heights
The prime market witnessed record-breaking exercise with 1,417 transactions valued at AED15 million or above, marking a 67 per cent quarter-on-quarter enhance and 113 per cent year-on-year development.
Secondary luxurious properties considerably outperformed with 1,153 transactions, 4.5 occasions greater than off-plan gross sales in the identical quarter. This represents a 137 per cent year-on-year surge.
Within the first half of 2025 alone, 2,268 luxurious items transacted, representing 87 per cent of 2024’s full-year quantity and practically double 2022’s whole.
Rental market exhibits resilience
A complete of 107,830 rental contracts had been recorded in Q2 2025, reflecting a 2 per cent enhance year-on-year.
Throughout the primary half of 2025, Dubai registered 236,315 rental contracts, broadly in keeping with H1 2024’s whole of 240,270.
Renewals persistently made up 60-65 per cent of contracts, whereas new leases remained regular at roughly 40 per cent.
“Leasing exercise at Betterhomes grew by 33 per cent quarter on-quarter, highlighting the sustained demand throughout Dubai s rental market. Villa and townhouse demand rose considerably by 30 per cent and 98 per cent respectively reflecting a rising choice for spacious, family-oriented dwelling,” Rupert Simmonds, Director of Leasing at Betterhomes added.
Worldwide Purchaser Curiosity Shifts
The UK claimed the highest spot amongst worldwide patrons at Betterhomes, overtaking India with 56 per cent quarter-on-quarter development. India and Pakistan maintained second and third positions respectively, whereas Poland entered the highest 5.
Russian purchaser exercise eased and fell out of the highest 10, whereas Eire debuted at sixth place, highlighting rising European curiosity in Dubai actual property.
The UAE’s economic system, the second largest within the GCC, recorded 3.8 per cent GDP development in 2024, with forecasts projecting will increase to 4.2 per cent in 2025 and 5 per cent in 2026.
Dubai’s inhabitants grew from 3.8 million to 4.1 million residents, now housing one-third of the UAE’s inhabitants. Non-public college enrollment elevated 6 per cent whereas universities skilled a 29 per cent surge in worldwide college students.
Tourism sector development supported the property market, with customer numbers rising 7 per cent year-on-year till April 2025, led by a 22.7 per cent surge in April. Resort occupancy ranges reached 84 per cent within the first 4 months, up 7 per cent year-on-year.
Betterhomes recorded sturdy development throughout each gross sales and leasing. Gross sales transactions rose 17 per cent quarter-on-quarter, with townhouse offers greater than doubling and common sale costs rising 28 per cent year-on-year.
The leasing market noticed transactions greater than double year-on-year, with one and four-cheque funds accounting for practically 60 per cent of recent leases.
“As we transfer into Q3, the basics stay sturdy. Inhabitants development is regular, infrastructure continues to develop, and whereas extra provide is coming on-line, demand remains to be outpacing it in most areas. We count on to see extra negotiation, extra lifelike pricing, and a little bit extra competitors, which, frankly, isn’t any unhealthy factor,” Harding mentioned.
