Dubai’s property market has recorded an exceptional first half of 2025, with residential real estate transactions reaching unprecedented levels. A new report by ValuStrat reveals that nearly 99,000 property deals worth AED 326.7 billion ($88.76 billion) were recorded, driven by rapid population growth, strong capital value gains, and a surge in off-plan investments.
Population Growth Tightens Supply and Lifts Prices
With an influx of nearly 90,000 new residents during Q1 alone, housing demand in Dubai has significantly outstripped supply. Only 12,000 new units have been delivered this year, creating supply pressure that has fueled increases in both sales prices and rents across several major districts.
Mohammed Miqdadi, CEO of DURAR Group, described this momentum as a sign of maturity and global appeal. “The first half of the year has exceeded expectations. Today’s buyers are not just investors — they’re looking for lifestyle, design, and long-term value. Dubai is entering a new, more sophisticated phase of real estate growth,” he noted.
Capital Gains Concentrated in Key Communities
The growth in capital values has been particularly notable in the villa market and select premium neighborhoods. Jumeirah Islands, Palm Jumeirah, and Emirates Hills topped the charts in capital appreciation, while apartments in communities like The Greens and Dubailand also saw consistent demand.
According to ValuStrat’s June report, villa prices rose by 1.9% in June (down slightly from 2% in May), contributing to a significant annual increase of 28.7%. Apartment prices followed with a 1.1% monthly increase and an annual gain of 19.1%.
Off-Plan Segment Maintains Strong Investor Interest
Off-plan properties continue to dominate investor interest, comprising over two-thirds of all residential transactions in the first half of 2025. Flexible payment options and new project launches in Dubai South, Emaar South, and JVC have made early-stage investments highly attractive.
Looking ahead, Miqdadi emphasized the importance of sustainable growth: “Dubai’s next chapter in real estate will be about creating scalable, sustainable communities that meet the needs of a growing and evolving population.”
