Dubai Residential Property Market Powers Ahead: July Sales Up 20%, Rentals Hold Strong

 

The total number of sales transactions surged 18,816, up 20.5% month-on-month, with a total value of AED 51.3 billion

 
By News Desk, August 13, 2025 UAE Real Estate
 

Dubai Residential Property Market Powers Ahead: July Sales Up 20%, Rentals Hold Strong
 

Dubai’s residential real estate market extended its growth streak in July 2025, with Betterhomes reporting higher transaction volumes and sustained demand across both sales and leasing, drawing on market data from Property Monitor alongside its own client insights.

The company recorded strong activity in off-plan and secondary sales as well as robust tenant demand in key communities.

Sales Market

Dubai’s residential property market reached an average price per square foot of AED 1,893 in July, a 3.3% rise from June. The total number of sales transactions surged 18,816, up 20.5% month-on-month, with a total value of AED 51.3 billion (+10.6%).

Off-plan sales continued to dominate at 65% of transactions, up from 62% in June.

The top-performing villa communities by transaction volume were The Wilds, Grand Polo Club & Resort, and The Oasis, while Jumeirah Village Circle, Business Bay, and Damac Riverside led the apartment segment. Average sale prices across Dubai stood at AED 1.99 million for apartments, AED 3.25 million for townhouses, and AED 9.7 million for villas.

“The continued strength of Dubai’s off-plan sector shows enduring confidence in the city’s long-term growth,” said Christopher Cina, Director of Sales at Betterhomes. “We’re seeing demand from both seasoned investors and first-time buyers eager to secure properties before completion,” he added.

Betterhomes reported a 4% month-on-month increase in buyer leads in July, with transactions split almost evenly between cash (48%) and mortgage-backed (52%) purchases.

Investors remained dominant, accounting for 62% of deals compared to 38% from end-users. Average sale prices came in higher for apartments (AED 2.33 million) but lower for villas (AED 6.1 million) compared to the DLD averages, reflecting differences in portfolio composition and buyer preferences.

Top Performing Communities (Betterhomes):

  • Villas: Damac Hills 2, Dubai Land, Dubai Investments Park
  • Apartments: Dubai Marina, Motor City, Dubai Land

Leasing Market

Leasing activity also strengthened in July, with Dubai residential market recording 39,251 rental transactions, a 3.4% month-on-month rise. New contracts made up 40% of these deals, up from 37% in June, indicating an influx of fresh tenants into the market.

Al Khail Heights registered the highest apartment rental growth at 1.5% month-on-month, reaching an average of AED 67,500 annually, while Jumeirah led villa rental growth with a 4.2% increase to AED 498,000 per year. Across Dubai, the average rental price stood at AED 72,000 for apartments, AED 172,000 for townhouses, and AED 255,000 for villas.

The most active villa leasing communities were Mirdif, Damac Hills 2, and Jumeirah, while Jumeirah Village Circle, Dubai Silicon Oasis, and Business Bay topped the apartment segment.

"Dubai’s rental market is powering ahead, with more tenants willing to pay for the right property. July’s jump in new contracts shows fresh demand is still flowing into the city." said Rupet Simmonds, Director of Leasing at Betterhomes.

Betterhomes recorded a 10% month-on-month increase in tenant leads in July, reflecting continued demand across its rental portfolio. Average leasing prices within the company’s transactions stood at AED 141,000 for apartments, AED 190,000 for townhouses, and AED 368,000 for villas. 

Most Active Communities (Betterhomes)

  • Villas: Arabian Ranches 3, Dubai Hills Estate, Arabian Ranches 2
  • Apartments: Dubai Marina, Downtown Dubai, Business Bay

Market Outlook

The combination of rising transaction volumes, strong off-plan demand, and resilient leasing activity reaffirms Dubai’s position as a leading global property market. Investor sentiment remains confident, while tenant demand continues to show robust growth. With both prices and activity trending upward, Betterhomes anticipates that momentum will carry into the coming months.

Betterhomes  Property Monitor  

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