Dubai’s residential actual property market continued its robust trajectory within the first half of 2025, with transaction volumes growing 23 per cent year-on-year to 91,897 gross sales throughout each secondary and off-plan markets, in response to a brand new report from Espace Actual Property.
The primary half of the yr noticed sturdy exercise, buoyed by sustained demand for each off-plan and prepared properties.
Whereas total transaction volumes remained robust, a more in-depth take a look at community-level information signifies that the market is now coming into a stabilisation section of the cycle, in response to Espace evaluation.
Dubai actual property
In lots of Dubai’s most established communities, barely decrease ranges of transactional exercise have been recorded. Nevertheless, each rental and capital values continued to rise, highlighting a shift towards long-term residency.
John Lyons, Managing Director at Espace Actual Property, stated: “In H1 2025 the Dubai residential actual property market continues to exhibit outstanding resilience and development. Transaction volumes remained sturdy, buoyed by sustained demand for each off-plan and prepared properties”.
Off-plan transactions accounted for 59 per cent of all residential exercise in H1 2025, a slight lower from 61 per cent throughout the identical interval final yr, the report famous.
As of H1 2025, 17,013 off-plan items have been accomplished, reflecting a notable enhance in obtainable rental inventory. This new provide is contributing to a moderation of rental value development throughout the broader market, significantly in newly handed-over communities.
The report notes a shift in resident behaviour, with a rising variety of individuals now viewing Dubai as a long-term dwelling quite than a short-term expat base.
This evolution is supporting better stability available in the market and contributing to extra measured, sustainable development.
The luxurious section skilled significantly robust efficiency, with properties priced above AED20m ($5.4m) recording the most important enhance in transaction exercise each year-on-year and in comparison with H2 2024.
This reinforces the continuing pattern of Dubai persevering with to draw world wealth. Notably, modifications to the so-called “non-dom” tax laws within the UK have prompted many ultra-wealthy UK residents to relocate to Dubai.
Villa and townhouse communities recorded a transparent divergence from the residence section when it comes to value appreciation.
Of the 20 villa and townhouse communities tracked on this report, 19 noticed value will increase, with the common rise standing at 19 per cent. The restricted provide inside this section continues to drive value development.
Common promoting costs elevated in 10 out of the 11 residence communities tracked, though at a extra average tempo than H1 2024.
The common enhance was 8 per cent in H1 2025 in comparison with 17 per cent throughout the identical interval final yr, suggesting a extra moderated tempo of development on this section.
Rental exercise has barely declined within the communities tracked within the report, largely as a consequence of better availability throughout the market.
Whereas costs have continued to rise, the handover of recent communities helps to stability demand with provide, holding rental value will increase from accelerating additional.
At Espace Actual Property, purchaser exercise continues to spotlight Dubai’s robust world attraction, with demand pushed by a broad mixture of worldwide consumers.
Whereas the UK has lengthy remained the highest supply of traders, there may be rising curiosity from throughout Europe, North America and Asia Pacific.
This pattern displays Dubai’s rising standing as a long-term dwelling for rich world residents.
As market situations evolve, the report suggests the present moderation could finally contribute to extra sustainable long-term development for Dubai’s property sector.
