Recent data from a market performance report by Cavendish Maxwell reveals that Dubai’s residential real estate sales values have surged by 36.4%, reaching AED 262 billion. This substantial rise in sales values is attributed to robust demand for both off-plan and ready properties, culminating in record-breaking transaction volumes and a vibrant market outlook for the city’s real estate landscape.
Transaction Volume on the Rise
During the first half of the year, residential transactions in Dubai soared to 91,900, marking a remarkable 23% increase compared to the previous year. Ronan Arthur, MRICS, Director and Head of Residential Valuation at Cavendish Maxwell, emphasized that the initial six months reflected a resilient market characterized by strong buyer interest. Arthur noted, “The first six months of the year have highlighted a strong, thriving Dubai real estate market, with robust buyer demand and rising sales. At the same time, we are seeing early signs of moderation in rental price growth – good news for a city focused on attracting new talent and expanding its population.”
Market Dynamics and Trends
Off-plan sales dominated the market, accounting for over 70% of total transactions. Meanwhile, demand for ready homes showed encouraging growth, evidenced by 27,400 sales recorded during the same period, a significant 10% increase year-on-year. While the proportion of off-plan apartment sales dipped slightly to 76.7%, villa and townhouse transactions surged as buyers sought larger living spaces with outdoor access. Notably, four-bedroom homes led the off-plan villa and townhouse market, comprising 55% of those sales.
Among top developers, Emaar, DAMAC Properties, and Sobha Group maintained their positions at the forefront of sales volume. Interestingly, Beyond made its debut in the top 10 list, buoyed by impressive performance in Dubai Maritime City. Other notable developers included Binghatti, Danube, Samana, Nakheel, Azizi, and Wasl.
Luxury Market Performance
Luxury property sales experienced a dramatic uptick, with over 1,400 transactions of properties priced above AED 20 million, representing an 82% increase year-on-year. Sales of ultra-luxury homes valued over AED 50 million also rose by 33%, totaling 140 deals. This trend highlights the city’s appeal to high-net-worth individuals seeking premium living options amidst economic stability.
Arthur also pointed out that the Dubai Land Department’s newly launched First-Time Home Buyer Programme has the potential to invigorate the residential market further, particularly for end-users. “In time, the scheme could also help diversify the buyer base, promote long-term residency, and contribute to a more balanced, inclusive housing market,” he stated.
Pricing and Future Projections
Residential prices in Dubai experienced a year-on-year increase of 16.6%, averaging AED 1,609 per square foot. Meanwhile, rental prices rose nearly 10% compared to H1 2024, although they saw a slight decline of 0.6% from H2 2024, primarily due to the influx of new units into the market. June 2025 recorded an average gross rental yield of 7.2% for apartments and 5% for villas and townhouses, with Dubai Investments Park offering the highest yields for apartments at 10.3% and Dubai Industrial City leading for villas and townhouses at 7%.
In total, approximately 17,200 residential units were completed in the first half of the year, with significant handovers occurring in Jumeirah Village Circle, Sobha Hartland, and Mohammed Bin Rashid City. Developers launched 300 new projects, contributing 87,900 new units to the market, an impressive average of 490 new homes daily. Despite over 61,800 units currently under construction, only 21% of projects slated for completion this year have met significant construction milestones.
“These projections suggest an average of 9,000 units could be delivered every month through to 2027, but actual completion rates are expected to be lower, potentially leading to timeline shifts and delayed handovers,” Arthur remarked, indicating a cautious but optimistic outlook for the future of Dubai’s residential real estate market as values continue to climb.