Aug 1, 2025
Market Reports
Dubai’s real estate market sustained its remarkable momentum in July 2025, delivering one of the strongest months on record. With robust sales volumes, premium pricing, and continued strength in rentals, the emirate’s property sector is firmly establishing itself as a global benchmark for growth, resilience, and investor confidence.
Record-Breaking Market Activity Continues
July recorded AED 65 billion in property sales across 20,304 transactions, marking a 24.9% increase in volume and a 29.5% rise in value compared with the same month last year. This performance makes July the second-highest month on record, closely trailing the exceptional peaks of May and June. Residential transactions alone surpassed 23,000, a sharp 35% jump from June, underlining both end-user and investor demand across the city’s diverse communities.
Off-Plan Projects Hold Investor Confidence
Off-plan developments continued to dominate activity, accounting for 65% of all transactions, up from 62% in June. In terms of value, off-plan deals captured an even larger share at 74%, reflecting strong institutional and retail investor appetite. Leading developers such as Sobha Realty, Emaar, Binghatti, Damac, and H&H each secured between AED 1.5 billion and AED 2.7 billion in sales, driven by well-planned master communities, robust escrow protections, and increasingly flexible payment plans.
Villa Market: High Demand, Premium Pricing
The villa segment remained one of Dubai’s standout performers. A total of 2,988 villas were sold in July, generating AED 19.3 billion. Average villa prices rose to AED 5.2 million, reflecting a 32.2% increase compared to last year. Demand continues to be concentrated in prime and luxury communities such as Palm Jumeirah and Dubai Hills Estate, where lifestyle amenities, exclusivity, and limited supply are pushing values to record levels.
Apartment and Land Market Details
Apartments made up the largest share of sales, with 16,272 transactions totaling AED 32.2 billion — a 28.1% annual increase. While many buyers targeted affordability, high demand persisted in desirable mid-tier and luxury towers. Land plot transactions also saw robust activity, with 438 deals amounting to AED 12 billion, up 22.3% year-on-year. This surge reflects growing interest in both high-density residential developments and lower-density land acquisitions in growth corridors.
Commercial Property and Title Deed Highlights
Commercial property saw a resurgence in July, recording 606 transactions worth AED 1.5 billion. This represents a 57.8% year-on-year increase in transaction volume, signaling renewed confidence in Dubai’s office, retail, and mixed-use sectors. On the resale side, title deed activity remained strong. Emaar led the market with AED 5.9 billion in recorded resales, followed closely by Aldar, Damac, Nakheel, and Sobha Realty.
Price Per Square Foot and Market Momentum
The average property price per square foot rose to AED 1,650, up 9.6% from a year earlier. The Dubai Residential Property Price Index posted a 0.65% monthly increase and a 13.3% annual rise, reinforcing the strength of Dubai’s ongoing value appreciation.
Rental Market Continues to Thrive
The rental market showed no signs of slowing. July recorded 39,251 lease transactions, up 3.4% compared with June. Notably, 40% of these were new contracts, compared to 37% in the prior month, suggesting that more new tenants are entering the market rather than simply renewing leases. Average annual rents stood at AED 72,000 for apartments, AED 172,000 for townhouses, and AED 255,000 for villas. Specific areas posted standout growth: apartment rents surged in Al Khail Heights, while villa rents climbed sharply in Jumeirah. Yields remained highly competitive on a global scale, with JVC averaging 8.1%, Arjan at 7.2%, and Dubai Marina at 6.8%.
What’s Fueling the Momentum?
Population growth continues to play a central role, with Dubai now nearing the 4 million resident mark. A pipeline of 73,000 new homes scheduled for 2025, expanding to 300,000 units by 2028, reflects both the scale of growth and potential supply pressures ahead. Policy support is another key driver. Dubai continues to attract international capital through its tax-free environment, long-term Golden Visas, and full foreign ownership rights in freehold zones. Combined with stable currency dynamics, strong tourism, and consistent GDP expansion, these fundamentals are keeping investor confidence high.
What to Expect Coming Up
With more than 210,000 units expected for delivery between 2025 and 2026, analysts anticipate some downward pressure on mid-market pricing, with potential corrections of up to 15% over the next 12–18 months. However, the prime and ultra-luxury segments are expected to remain resilient, underpinned by global demand and limited supply. Developers are adapting by focusing on branded residences, sustainable master communities, and innovative co-living models that align with evolving buyer and tenant preferences.
Conclusions
July 2025 reaffirmed Dubai’s strength as one of the world’s most dynamic real estate markets, with AED 65 billion in sales, a commanding off-plan segment, record-high villa pricing, and strong rental and commercial performance. While an influx of new supply may bring adjustments in certain segments, Dubai’s tax advantages, investor-friendly regulations, and global appeal ensure that its property sector continues to deliver both attractive yields and long-term growth potential.
All data sourced from dxbinteract.com
