Apartments continued to dominate the landscape, accounting for 80% of all transactions

Dubai’s ready market showed resilience, with over 15,000 transactions in completed properties.

Dubai’s residential property market surged to unprecedented levels in the second quarter of 2025, driven by a potent mix of investor confidence, population growth, and a steady influx of high-net-worth individuals, data shows. 

According to the latest report by Savills, the emirate recorded over 50,000 residential transactions — a 21 per cent year-on-year increase and the highest quarterly volume ever.

Apartments continued to dominate the landscape, accounting for 80 per cent of all transactions, while off-plan sales remained the cornerstone of market activity, representing 70 per cent of deals. This marks a steady rise from 68 per cent in 2024 and 55 per cent in 2023, underscoring the growing appeal of new developments.

Zone 6, which includes areas along the Al Khail corridor such as Jumeirah Village Circle (JVC), Dubailand, and Damac Hills 2, emerged as the most active region, contributing 53 per cent of total transactions. Nearly half of all new residential launches were concentrated in this zone, with major projects like Parkwood by Emaar and Timez by Danube leading the charge.

The ready market also showed resilience, with over 15,000 transactions in completed properties. Apartments made up 83 per cent of these sales, reflecting a continued shift toward more affordable and available housing options. Meanwhile, villa and townhouse transactions held steady at around 10,000 per quarter.

Supply surged in response to demand, with 20,000 units launched in Q2 alone — a 66 per cent increase compared to the same period last year. Apartments dominated new launches, comprising 91 per cent of the total, while future supply is expected to expand with masterplan developments like Jumeirah Golf Estates Phase 2 and Jebel Ali Racecourse.

Dubai’s prime residential segment also saw remarkable growth, with over 2,500 properties transacted above Dh10 million — double the volume from Q2 2024. Villas led the premium market, accounting for 76 per cent of high-value transactions, with off-plan deals making up 80 per cent of this segment. The Oasis, Palm Jebel Ali, and Acres were among the top-performing villa communities.

Approximately 6,000 units were added to the city’s residential stock during the quarter, bringing the H1 volume to 13,500. In addition, approximately 20,000 residential units are slated for completion in H2 2025, underscoring the strength of Dubai’s supply pipeline.

Government initiatives continue to bolster the market. The launch of the Dh20.6 billion Dubai Metro Blue Line in May 2025 promises enhanced connectivity across key districts by 2029. Additionally, the Dubai Land Department introduced a First Time Buyer Scheme, offering incentives such as preferential pricing and flexible payment plans to encourage homeownership.

Capital values remained strong, with villas appreciating by 4 per cent overall and prime communities seeing gains of up to 10 per cent. Apartment values held steady year-on-year, supported by luxury launches and sustained demand.

Looking ahead, Dubai is poised to attract nearly 9,800 millionaires in 2025, according to Henley & Partners, reinforcing its status as a global hub for wealth and investment. Savills Dynamic Wealth Index placed Dubai as the top global city for attracting and developing individual wealth, driven by the strong quality of life proposition, low tax environment and strength of the Golden Visa programme.

Despite potential global economic headwinds, the city’s political stability, business-friendly environment, and strategic vision continue to position its residential market for sustained growth. “The emirate’s political stability, competitive regulatory landscape, and business friendly ecosystem are expected to support ongoing population and investment inflows,” the report, authored by Andrew Cummings, Head of Residential Agency Middle East and Rachael Kennerley, Director – Research at Savills, said.

Source: Khaleej Times

Published: 18 August 2025