In recent months, the Dubai real estate market has experienced unprecedented growth, particularly in the secondary property sector. As demand for villas surges and inventory struggles to keep pace, the secondary property market has soared by 46% in value, reflecting a significant trend among buyers who are increasingly seeking quality, ready-to-move-in homes. This surge indicates not only a shift in buyer preferences but also a broader confidence in Dubai’s real estate landscape.
Dubai’s real estate market has completed AED 260 billion worth of sales transactions in the first half of 2025, marking a 35% increase compared to the same period in 2024, according to a recent report.
Secondary Market Dominates Dubai Real Estate
The secondary market has emerged as the standout performer, significantly outpacing the off-plan segment across key indicators. Sales transaction value in the secondary market surged by 46% year-on-year, while the off-plan segment recorded a commendable 25% increase.
Average sales prices in the secondary market rose by 15%, compared to just 5% for off-plan properties. This trend reflects a shift in buyer demand towards ready, quality stock, driven predominantly by the ongoing shortage of available villas and townhouses across Dubai.
The Dubai Land Department (DLD) reported a striking 55% increase in total villa and townhouse sales transaction value during the first six months of 2025, contrasted with a 22% increase for apartments.
“We have seen a remarkable shift in buyer focus towards the secondary market. With fewer new villas and townhouses entering the market, many buyers are now willing to pay a premium for high-quality, renovated properties in prime communities. In the five to ten million dirham price bracket, we’ve seen a 50% increase in sales volume in the first half of the year. Even more impressively, the ultra-luxury segment, above ten million dirhams, has recorded a 113% increase in sales volume,” said Lewis Allsopp, Chairman of Allsopp & Allsopp.
“This level of activity is a clear sign of growing investor confidence and high-net-worth individuals choosing Dubai not just for lifestyle, but for long-term capital growth and return on investment. The secondary market is proving its strength, especially in the villa and townhouse space, where demand continues to outstrip supply,” he added.
Data from Allsopp & Allsopp supports this trend, showing a 79% rise in total transaction value for villas and townhouses and a 30% increase for apartments. Notably, apartments accounted for 78% of secondary market transactions by volume, whereas villas and townhouses represented 22%. However, villas and townhouses significantly outperformed in terms of price growth and value contribution, underscoring the strong buyer appetite for family homes amid the limited supply available in the market.
The demand has directly driven price increases, with Allsopp & Allsopp reporting a notable 49% rise in the average sales price for villas and townhouses compared to H1 2024. Popular communities such as Jumeirah Golf Estates, Arabian Ranches, and Tilal Al Ghaf have led transaction activity, emphasizing the enduring appeal of well-established neighborhoods that offer privacy, space, and lifestyle amenities.
The shortage of newly built villas and townhouses has prompted both investors and homeowners to renovate existing properties. Upgraded homes are achieving premium resale values, with turnkey, move-in-ready properties becoming increasingly popular among both end users and investors seeking robust returns on investment.