In a striking development for the Dubai real estate market, Betterhomes has reported an impressive surge of 46% in property values during the second quarter of 2025. This growth underscores Dubai’s allure as a key investment hub and a desirable location for lifestyle buyers, even amid regional unrest. The latest quarterly report reveals robust activity across various sectors, with a notable increase in both transaction volume and overall sales values, reaffirming Dubai’s reputation as a resilient property market.
The market demonstrated resilience during June’s regional unrest, reinforcing Dubai’s position as a destination for both capital and lifestyle buyers, according to Betterhomes’ latest quarterly report.
“Dubai’s real estate market maintained its momentum in Q2, with transactions up 25% year-on-year and total value rising 46%. Apartments and off-plan properties led activity, while the luxury segment hit record highs. Even during June’s regional unrest, the market remained resilient, reinforcing Dubai’s position as a safe, stable destination for capital and lifestyle buyers alike,” said Louis Harding, Chief Executive Officer of Betterhomes.
Apartments Drive Market Growth
Apartments dominated the landscape, accounting for 80% of all transactions, with over 40,000 units sold and generating a staggering AED81 billion in sales value. The sector experienced notable growth, as both secondary and off-plan transactions rose 21% year-on-year.
Off-plan apartment sales saw a remarkable quarter-on-quarter increase of 30%, driven by developers launching new projects to meet the escalating demand. Two-bedroom apartments made up 33% of off-plan transaction value, while one-bedroom units contributed 30%, and studios accounted for 10%.
The average price per square foot for off-plan transactions stood at AED2,023, contrasting with AED1,600 for secondary apartments. Jumeirah Village Circle emerged as a key player in this sector, leading off-plan apartment transactions with 12.2% of the total, followed by Business Bay and Dubai Residence Complex.
Villa Prices Reach New Heights
The villa and townhouse segment displayed a mixed performance in sales, with secondary properties achieving a remarkable 66% year-on-year growth, amounting to AED62.4 billion. However, off-plan villa transactions saw a decline of 23% year-on-year and 46% quarter-on-quarter.
“With approximately 20,000 new units delivered in the first half of 2025 and a further 70,000 expected by year-end, Q3 is shaping up to be an exciting phase for Dubai’s property market,” said Christopher Cina, Director of Sales at Betterhomes. The Valley accounted for 29.7% of off-plan transactions, while EMAAR South followed closely with 15.5%.
Price Growth Across All Segments
The citywide average property price in Dubai has reached AED1,582 per square foot, marking a 6% increase compared to the latter half of 2024 and demonstrating a remarkable 90% rise from pandemic-era lows. Off-plan apartment prices rebounded to AED2,023, reflecting a 12.5% increase since early 2023, while secondary apartment prices saw a consistent rise of 23%, now standing at AED1,599.
Prices in the villa and townhouse category also showcased robustness, with secondary market prices ascending to AED1,557 per square foot, up by 9% quarter-on-quarter, while off-plan prices reached AED1,368, a 4% quarter-on-quarter increase. Over 70,000 additional residential units are expected to be delivered in the latter half of this year, further fueling the dynamic Dubai real estate market.
Luxury Market Achieves Record Activity
The luxury segment saw exceptional growth, with 1,417 transactions valued at AED15 million or above — a staggering increase of 67% quarter-on-quarter and 113% year-on-year. Secondary luxury properties are leading these transactions, significantly outpacing off-plan sales, marking a 137% increase year-on-year.
In the first half of 2025 alone, 2,268 luxury units were transacted, representing 87% of the total volume witnessed throughout 2024 and nearly double the numbers from 2022.
Stable Rental Market Trends
Dubai’s rental market showcased resilience, with a total of 107,830 rental contracts recorded in Q2 2025, reflecting a 2% increase from the previous year. Across the first half of 2025, the total number of rental contracts reached 236,315, closely aligning with H1 2024’s total of 240,270.
Renewals consistently comprised 60-65% of contracts, while new leases held steady at roughly 40%. “Leasing activity at Betterhomes grew by 33% quarter-on-quarter, highlighting the sustained demand across Dubai’s rental market,” said Rupert Simmonds, Director of Leasing at Betterhomes.
International interest in Dubai real estate is also shifting, with the United Kingdom emerging as a top market for buyers, reflecting growing European engagement amid a steady rise in Dubai’s population and economy. The strong fundamentals of the Dubai property market indicate a promising outlook as we head further into 2025.