Dubai Real Estate Shatters Records in H1 2025 as Prices and Luxury Sales Surge

Dubai’s real estate sector posted its strongest performance in history during the first half of 2025, with total sales reaching AED 270 billion. Q2 alone saw a 23% year-on-year surge in transactions, driven primarily by the dominance of off-plan sales — now more than 70% of the market. Attractive developer payment plans and rising investor confidence continue to fuel demand.

Property prices have risen 14% year-on-year to June, with villas outperforming apartments as families and investors seek larger, high-quality homes. Rents climbed 7%, although mid-market areas are showing early signs of stabilisation.

Looking ahead, the supply pipeline is set to reshape the market: 44,000 units are expected to be delivered in 2025, with nearly 300,000 units planned by 2029. Analysts forecast that this surge will gradually slow price growth from 2026, creating more balance between supply and demand.

The luxury property market remains a standout performer. Dubai leads the world in $10 million-plus home sales, with over 100 such transactions recorded in Q1 2025 alone and a new record in Q2. Prime destinations such as Palm Jumeirah, Jumeirah Bay, Emirates Hills, and Dubai Hills Estate continue to attract ultra-high-net-worth buyers seeking exclusivity and strong investment returns.