We are delighted to release our H2 2025 Dubai Property Market Report, providing a clear and data-driven overview of Dubai’s real estate landscape across residential and commercial sectors. The second half of the year reflects a market supported by strong fundamentals, continued investor confidence and a maturing supply pipeline across key asset classes.
To read the full report, click here.
H2 2025 Market Insights:
• In H2 2025, Dubai’s real estate market spanning both residential and commercial sales continued to demonstrate remarkable resilience and growth. Transaction volumes remained robust, buoyed by sustained demand across off-plan, ready and commercial assets. The second half of the year recorded a 16% year-on-year increase in total sales transactions, reaching 115,928, alongside an impressive 23% jump in sales value compared with H2 2024. These results underscore a market supported by exceptionally strong fundamentals: continued population inflows, economic resilience and Dubai’s global positioning as a secure, investment-led hub.
• Off-plan remains the engine of growth, driving a 70% share of all residential transactions. This reflects the scale of new supply entering the market and the pace of project launches, which have become a key driver of overall transaction growth in 2025.
• Binghatti claimed the top spot in the off-plan market with more than 13,000 units launched, followed by DAMAC Properties with 6,588 units and Emaar with 6,262.
• As of H2 2025, developers completed 20,536 residential units, a modest 5% increase from H2 2024. The most notable takeaway is the composition of this new supply: apartment stock accounted for 82% of all completions, underscoring the imbalance in the market and the limited delivery of villas and townhouses, with only 3,777 units introduced across these segments. This supply skew continues to place upward pressure on pricing in established villa communities across Dubai.
• Dubai’s commercial segment continued to demonstrate steady activity in H2 2025, with the office market accounting for the largest share at 38%. Business expansion and new market entrants remain the key drivers of office absorption across the city’s major commercial districts. Land transactions accounted for 20%, followed by hotel apartments at 14% and retail at 13%.
• While H2 2025 recorded strong overall activity, a closer look at community-specific data suggests the market has entered a stabilisation phase, with slightly lower transaction volumes evident across many of Dubai’s most established communities. At the same time, prices continued to rise across the majority of these areas, underscoring that demand remains resilient and that reduced activity is primarily a function of limited resale supply rather than weakening sentiment.
• There remains a distinct difference in price appreciation between the villa/townhouse segment and the apartment market. Of the 21 villa/townhouse communities tracked in this report, 18 recorded price increases, with an average rise of 15%. Meanwhile, of the 11 apartment communities tracked, 8 experienced price growth, although at a more moderate level of 8%. This difference is driven primarily by supply dynamics: established villa communities have significantly limited resale inventory, while the apartment sector benefits from a more consistent and larger pipeline of new completions.
• Leasing activity in H2 2025 reflects a rental market that is demonstrating greater maturity, with total volumes rising year-on-year but shifting across the city as new supply enters the market. The addition of new housing stock in the apartment segment helps explain softer activity in established districts such as Dubai Marina, JBR and JLT, as demand has shifted toward higher-supply and more affordable communities including JVC and Emaar Beachfront. A similar pattern is evident in the villa and townhouse segment, where lower leasing volumes in mature areas were offset by strong growth in emerging communities such as Tilal Al Ghaf, Al Furjan and Emaar South.
• Rental prices continued to rise across most communities, with villa/townhouse rents increasing by an average of 11% year-on-year and apartments recording a more moderate rise of 4%. This reflects the impact of new inventory entering the market and providing tenants with wider choice across emerging and established communities.
• At Espace Real Estate, buyer activity in H2 2025 continues to highlight Dubai’s strong global appeal, with sustained demand led by purchasers from the United Kingdom, India and the Netherlands. While the UK has long remained the top source of investors, we continue to see broad interest from across Europe, the Middle East and Asia, reinforcing Dubai’s position as a long-term residential base for international buyers.
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