The Dubai real estate market is very strong and able to bounce back. In the first half of 2025, it set records for sales value and transaction volume. The Dubai Land Department and the most recent Better homes Q2 2025 Dubai Residential Real Estate Market report say that property sales reached an all-time high of AED151.8 billion ($41.3 billion) in the first half of 2025. This is a 46% increase from last year, which is due to a big rise in sales in the prime market and a lot of interest from investors.
Growth in the market and the number of transactions
There were 50,485 transactions in the first half of the year, which is 25% more than the same time last year. The numbers from one quarter to the next also show a lot of growth: value is up 33% and volume is up 19%. In the second quarter of 2025, the prime residential segment really stood out, with a record 1,417 sales. This was a big jump of 113% from the same time last year and 67% from the previous quarter. This shows that more and more rich people from all over the world want ultra-luxury homes in Dubai.
The movement of goods and the changing needs of customers
The rise in sales is being helped by new supply. In the first half of 2025, about 20,000 new homes were built. By the end of the year, another 70,000 are expected to be built. More than 200,000 homes are being built in Dubai right now, which means the city is ready to meet the growing need for housing.
The most important places to finish new projects in H1 are:
- 20% of the Jumeirah Village Circle (JVC)
- 11% of Sobha Hartland
- 8% of the city of Mohammed Bin Rashid (MBR City)
This new supply is a good fit for the emirate’s growing population and investors’ growing demand, which is still strong for both apartments and ready-to-move-in villas.
Changes in the market and how prices are doing
The average price of a home keeps going up, and now it’s AED1,582 ($431) per square foot. This is a 6% rise from the last quarter and a shocking 90% rise from the lowest prices during the pandemic. Prices keep going up because there isn’t much luxury available, there are more investors looking to buy, and rental yields are high.
Investors made 58% of sales in the second quarter of 2025, up from 50% in the first quarter. Customers made up 42% of sales. The market changed a lot, and now cash transactions make up 52% of all deals, while mortgage-backed purchases fell to 48%. This means that the market is very liquid and driven by investors, which is good for quick deals and for people who want to buy things outright because they are worried about the global economy.
Different Kinds of Buyers from Other Countries
People from all over the world are still buying real estate in Dubai. The UK became the most active buyer nationality in the second quarter of 2025, with a 56% increase in activity from the previous quarter. It had been years since it had been higher than India. India and Pakistan stayed in second and third place, while Poland moved up to fifth place. Ireland made its debut in sixth place, taking Russia’s place.
Dubai is known as a cosmopolitan place to invest in real estate, and this wider appeal around the world adds to that.
The market as a whole and its long-term growth
The Dubai Land Department says that there were 125,538 real estate deals of all kinds in the first half of 2025. This is 26% more than the same time last year. The total amount of these deals was AED431 billion ($117.3 billion), which is 25% more than last year. There were over 1.3 million real estate transactions, such as sales, leases, and other deals. This shows that both investors and end users have a lot of faith.
There are still a lot of investments going on. Almost 95,000 investors closed more than 118,000 deals worth about AED326 billion ($88.76 billion), which is 39% more than in 2024. Forty-five percent of new investors were from the area, which shows that policies that make it easier to buy a home are working.
Demand’s going up due to more people living everywhere now.
One big reason people are buying up property is because Dubai’s population is growing. There were nearly 90,000 new entries within the first three months of this year alone, so after some time, this created a very tight market for housing. As the number increases, there is a great demand for all types of properties hence prices go up, especially in villa and prime areas like Palm Jumeirah, Jumeirah Islands, and Emirates Hills.
Around 70% of all residential sales in H1 2025 were off-plan, and they still reign as the most in demand property. Investors are all for the places that keep evolving such as JVC, Dubai South, Emaar South.
What You Can Expect
Experts say that the second half of 2025 will keep this positive trend going because Dubai has a strong economy, a growing population, and high rental yields. In the short to medium term, more supply could slow down the overall rise in prices, but demand for prime and ultra-prime assets is likely to stay strong. Developers are now trying to find a balance between scalability and sustainability so that homes will last and meet the needs of people as their lifestyles change.
Summary Table: Dubai Real Estate Market H1 2025 Key Metrics
| Metric | Value (H1 2025) | Change | Details / Notes |
|---|---|---|---|
| Total Sales Value | AED 151.8 billion ($41.3 billion) | +46% YoY (vs. H1 2024) | Record-breaking performance per Betterhomes Q2 2025 report |
| Units Sold (Transaction Volume) | 50,485 units | +25% YoY, +19% QoQ | Strong global buyer interest |
| Prime Residential Transactions (Q2) | 1,417 transactions | +113% YoY, +67% QoQ | Ultra-luxury market surge |
| Average Price per Sqft | AED 1,582 ($431) | +6% QoQ, +90% vs. pandemic lows | Price growth driven by limited luxury stock and demand |
| Investor Transactions Share | 58% | Up from 50% in Q1 | Investor dominance |
| Cash Transactions Share | 52% | Up from 42% in Q1 | Liquidity-driven market |
| Mortgage-Backed Transactions Share | 48% | Down from 58% in Q1 | Lending caution amid global economic conditions |
| New Residential Units Delivered | 20,000 units | Ongoing supply growth | 70,000 more expected by year-end |
| Development Pipeline (2025–2027) | 200,000+ homes | — | Long-term supply preparation |
| Top Completion Areas | JVC (20%), Sobha Hartland (11%), MBR City (8%) | — | Leading completion hubs |
| Population Growth (Q1 2025) | Nearly 90,000 new residents | — | Driving housing demand |
| Total Real Estate Transactions | 125,538 | +26% YoY | Includes sales, leases, other transaction types |
| Investment Deals Value | AED 326 billion ($88.76 billion) | +39% YoY | Nearly 95,000 investors active |
| Top International Buyer | United Kingdom | +56% QoQ increase | Followed by India, Pakistan, Poland, Ireland |
The real estate market in Dubai in the first half of 2025 is a strong sign of its growth potential, appeal to global investors, and long-term viability. Dubai’s real estate market is still one of the most dynamic and interesting in the world. This is because transaction values are at an all-time high, prime sales are up by double digits, and there are more and more buyers.
