Dubai property surge 2025: What the mid-year data really means for investors
If you’ve been following the momentum of real estate companies in Dubai, the results from the first half of 2025 are worth a closer look. With transaction volumes up 22.5% and total sales value rising by 40.1% compared to H1 2024, Dubai’s property market has delivered one of its strongest mid-year performances yet.
Now, with H2 already underway, here’s what the data reveals about shifting investor preferences, asset performance, and what might lie ahead.
Here’s a closer look at the patterns shaping the market and what they might signal for the months ahead.
First half 2025: A market on the move
Dubai's property sector carried its momentum from 2024 into the first half of this year. The pace was led by a vibrant off-plan segment, notable gains in resales, and a shift in mortgage dynamics that’s worth a second look.
To understand just how active Dubai’s property market this year has been, it helps to look at the numbers. The first half of 2025 wasn’t just busy - it reflected a market gaining both pace and depth. From off-plan momentum to resale strength and some interesting trends in mortgages, here’s how the data stacks up:
Key market highlights:
- Off-Plan Market
- 64,907 transactions were recorded, showing a 26.5% increase from the same time last year.
- Total value jumped to AED 209.1 billion, up 43.2%.
- Median price per square foot inched up to AED 1,642.73 (+1.7%).
- Resale Market
- 34,150 transactions took place, marking a 15.6% annual increase.
- These sales generated AED 119.7 billion, up 35% in value.
- Price per square foot rose by 10.9% to AED 1,467.91, showing growing demand for ready homes.
- Overall Market
- Dubai recorded 99,057 total property transactions in H1 2025.
- Sales value reached AED 328.8 billion, signalling strong liquidity and buyer confidence.
- Mortgage Trends
- The number of mortgage transactions rose 38%, pointing to increased market participation.
- But the overall loan value dipped 7.9%, which could reflect more cash buyers or smaller loans.
Together, these figures show a market that’s not just expanding but evolving. Investors and buyers are clearly active, but they’re also becoming more calculated in how and where they engage.
Why compare first halves? Looking at H1 performance year-over-year strips away seasonal spikes caused by launches, holidays, or events. It’s a way to get a clean read on where the market is headed, without distractions.
Apartments: modest, strategic growth
Apartments delivered stable performance across both off-plan and resale categories, reflecting a maturing segment with long-term appeal.
In the off-plan space, prices saw a 1.5% increase year-on-year and 11.1% over the last two years. Since 2021, price per square foot has grown by 50.1%, suggesting measured but steady demand.
Resale apartments showed stronger momentum. Prices per square foot rose 5.1% year-on-year, and more than doubled since 2020. Spacious layouts and well-situated properties remain particularly popular.
For those seeking dependable returns rather than quick gains, this segment may continue to offer quiet strength.
Villas: normalisation in new builds, strength in resale
Not all villa performance was alike.
Off-plan villa prices dipped by 4.1% in median terms, though price per square foot increased 12.2% - a hint that smaller, more efficiently priced homes are drawing interest.
In contrast, resale villas continued their upward path. Median prices climbed 12.4%, while price per square foot rose 21.6%. Family-friendly communities such as The Lakes and Arabian Ranches continue to hold broad appeal.
This may point to a preference for established locations with ready infrastructure and liveable space, especially among end-users and long-term investors.
Plots: supply and location define value
Land performance varied depending on type and geography.
Off-plan plots saw a median price drop of 33.3%, likely due to oversupply and more measured speculation.
Resale plots told a different story. Median prices rose by 18.6%, and price per square foot gained 17.9%. Locations with built-up surroundings and accessible infrastructure appeared to drive the strongest results.
As a strategy, looking at land within established zones could offer more predictable growth than emerging areas with uncertain demand.
Commercial real estate: a recalibration in the making
Commercial assets continued to deliver strong numbers, but patterns are shifting.
Off-plan sales jumped 28.1% in value, yet the price per square foot dipped 15.8%. That may reflect more cautious buying or recalibrated developer pricing.
Resale commercial properties remained resilient. Median values rose 20%, and price per square foot was up 18% - solid gains for a sector that relies heavily on location and tenant demand.
For those exploring this space, established business hubs with ongoing footfall and occupancy might offer more consistent performance.
Entire buildings: niche potential with long-term vision
This is a segment that typically attracts institutions or ultra-high-net-worth buyers. And the returns may justify the exclusivity.
Median prices rose 1.5% year-on-year, while price per square foot surged 20.9%. Since 2021, prices have more than doubled, even if liquidity remains relatively low compared to individual units.
Investors with the resources to hold full buildings may find this segment a strategic fit for diversification or long-term capital preservation.
What this could mean for investors
Dubai’s real estate market is clearly diversifying. Asset class, timing, and community are increasingly distinct dynamics - broad trends no longer provide a complete view of market performance.
Looking ahead to the second half of 2025, a few considerations may be useful:
- Micro-markets matter. Instead of following the broad trends, it might be worth drilling down into specific communities and property types.
- Timing isn’t everything, but it helps. Those who entered earlier in the cycle reaped the sharpest rewards. For newer investors, steady growth and thoughtful entry points may be more realistic goals.
- Not every segment is still accelerating. If a sector has already seen major gains, it may now offer more stable, rather than spectacular returns.
Areas to watch in H2 2025
- Based on current trends, some property types and locations continue to stand out:
- Resale villas in well-established, amenity-rich communities
- Secondary-market plots in growing development corridors
- Commercial spaces in central business hubs with active leasing markets
What this means for you
Dubai’s H1 2025 results aren’t just impressive, they offer a window into a maturing market. The opportunities are still very real, but they increasingly reward those who take the time to understand each segment’s trajectory.
Our expertise turns market data into practical perspective, so you can make decisions that align with your goals.
If you're considering your next move or exploring tailored insights for your investment strategy, speak with Dacha Real Estate for tailored guidance.
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