Dubai‘s real estate market has experienced a remarkable surge in activity, recording an astounding $46.5 billion in transactions during the second quarter of 2025. This unprecedented growth highlights the emirate’s strong appeal to both local and international investors, solidifying its status as a premier destination for property investment. As the Dubai real estate arena continues to flourish, the increasing volume of high-value transactions reflects ongoing confidence in the sector’s resilience and long-term prospects.
Rising Prices and Transaction Volume
According to Morgan’s International Realty’s Q2 2025 residential market report, the average price per square foot in Dubai was AED 1,793, with a total of 2,367 prime property transactions recorded within the quarter.
Jumeirah Village Circle (JVC) stood out as the top-performing neighborhood, documenting an impressive 4,845 transactions. The emirate also welcomed 84 new projects during this period, contributing to a significant uplift in overall market dynamics.
Sales transaction volume saw a noteworthy increase, rising from 43,864 in Q1 2025 to 50,593 in Q2 2025. Correspondingly, transaction values escalated from AED 134.34 billion to AED 170.53 billion, marking consistent growth since Q2 2022, when transactions totaled 21,478, valued at AED 85.25 billion.
Off-Plan Properties Lead the Charge
Off-plan properties have played a significant role in Dubai’s property surge, making up 59 percent of the overall transactions with 29,611 deals worth AED 67.81 billion. In contrast, the secondary market, which encompasses ready properties, accounted for 41 percent with 20,982 transactions valued at AED 102.72 billion.
The primary market properties averaged AED 1,983 per square foot, while those in the secondary market averaged AED 1,603 per square foot. Emaar emerged as a leader in off-plan sales, reporting 2,918 transactions amounting to AED 10 billion and achieving an average price of AED 2,135 per square foot. Similarly, Binghatti recorded 2,094 transactions worth AED 3 billion at an average of AED 1,935 per square foot, underscoring the competitive landscape among developers.
Luxury Property Sales Highlighted
In the luxury segment, Peninsula Dubai Residences achieved the highest sale, with a five-bedroom apartment transacting for AED 170 million on June 18, 2025. Following closely, Jumeirah Asora Bay witnessed a notable sale of AED 164 million for a six-bedroom unit on May 28, 2025. EOME dominated the luxury villa market, boasting three of the five highest transactions, including a six-bedroom villa sold for AED 300 million on May 7, 2025.
Prime community pricing reflected the strength of high-end properties, with Jumeirah Bay Island apartments averaging AED 11,722 per square foot and villas at AED 7,853 per square foot, showcasing the desirability of luxury living in Dubai.
Rental Market Insights
The rental market in Dubai generated AED 9.59 billion in annual rent from 109,401 transactions, with new agreements totaling 68,403 and renewals reaching 40,998. One-bedroom units were the most sought-after, resulting in 40,673 contracts, followed closely by two-bedroom units at 34,950 contracts. The median rental price per square foot across Dubai has reached AED 92, with variations depending on unit size: studios at AED 40,029, one-bedrooms at AED 60,192, two-bedrooms at AED 85,146, three-bedrooms at AED 141,625, and four-bedrooms at AED 240,662.
Future Supply and Market Outlook
Dubai’s property supply pipeline is robust, containing 281,143 units across 1,029 projects. The majority of upcoming developments comprise apartments (76 percent), followed by villas and townhouses (23 percent), and hotel apartments (1 percent). Delivery projections indicate 53,545 units scheduled for completion in 2025, with steady growth extending into the coming years. Notable forthcoming supplies include JVC with 24,225 units planned, followed by Business Bay with 16,360 units.
As the Dubai real estate landscape continues to evolve, the increasing demand for diverse property types underscores the emirate’s global appeal. The record transactions worth $46.5 billion further validate the city’s economic stability and attractiveness as a prominent hub for investment in real estate.