Dubai Residential Property Market Remains a Global Magnet in the First Half of 2025 with Total Sales Reaching AED 151.8 Billion

 

Betterhomes data showed investor activity picked up in Q2 2025, accounting for 58% of transactions, up from 50% in Q1 while end-user activity dropped to 42%, as investors returned for rental yields and capital gains, reversing the more balanced split seen earlier this year.

 
By News Desk, July 18, 2025 UAE Real Estate
 

Dubai Residential Property Market Remains a Global Magnet in the First Half of 2025 with Total Sales Reaching AED 151.8 Billion
 

Dubai’s real estate sector continues its record-breaking trajectory in 2025, confirming the city’s growing global real estate stature according to the latest report from Betterhomes titled Shaping Skylines | Q2 2025 Dubai Residential Real Estate Market.

The report offers an in-depth analysis of Dubai’s residential property market, providing valuable insights for investors, homeowners, and global real estate observers.

With a growing population, investor-friendly policies, and a development pipeline that continues to deliver, Dubai is well-positioned for sustained growth in the years ahead.

Total residential sales in Dubai reached AED 151.8 billion in the first half of 2025, marking a 46% year-on-year increase in value. Transaction volumes saw a 25% uptick, with 50,485 units sold. Compared to the previous quarter, the market grew by 33% in value and 19% in volume, demonstrating sustained momentum building on Q1’s performance.

The prime market witnessed a record-breaking 1,417 transactions, marking a 67% quarter-on-quarter increase from 851 deals in Q1. On an annual basis, activity has more than doubled, reflecting a remarkable 113% year-on-year growth, underscoring the booming appetite for ultra-luxury real estate in Dubai.

Supply growth remains strong, signalling ongoing developer confidence. Over 20,000 new units were delivered in the first half of 2025, with another 70,000 expected in the second half of the year. Looking further ahead, more than 200,000 additional units are in the pipeline through 2027. JVC led completions with 20%, followed by Sobha Hartland with 11% and MBR City at 8%.

Prices continue to show resilience, with average property prices climbing to AED 1,582 per square foot. This represents a 6% increase compared to the second half of 2024 and a 3% rise quarter-on-quarter from Q1 2025. Prices now stand 18% higher than in Q1 2024 and a notable 90% above the pandemic-era lows of AED 833.

Christopher Cina, Director of Sales at Betterhomes, says, “With approximately 20,000 new units delivered in the first half of 2025 and a further 70,000 expected by year-end, Q3 is shaping up to be an exciting phase for Dubai’s property market. This upcoming supply is well-aligned with the city’s growing population and strong investor appetite. Demand remains robust, particularly for apartments and ready villas, with healthy absorption of new launches. Both Q3 and the second half of 2025 are expected to reflect positive market sentiment, supported by a resilient economy, sustained end-user demand, and attractive rental yields.”

Betterhomes data showed investor activity picked up in Q2 2025, accounting for 58% of transactions, up from 50% in Q1. End-user activity dropped to 42%, as investors returned for rental yields and capital gains, reversing the more balanced split seen earlier this year.

Betterhomes also reported a significant shift in financing trends. The market moved notably toward cash purchases, with cash transactions rising to 52% in Q2 2025, up from 42% in Q1. Mortgage-backed deals declined to 48%, signalling a more liquid buyer pool led by high-net-worth individuals, international investors, and buyers seeking quicker closings.

The UK now leads buyer activity, overtaking India with a 56% jump this quarter. India and Pakistan maintained strong positions at second and third, respectively, while Poland entered the top five. Russia slipped out of the top 10 for the first time in years, making space for Ireland at sixth.

Dubai continues to attract a diverse global mix, with increased European interest and steady demand from traditional markets.

Dubai  Betterhomes  Mortgage-backed deals  residential market    

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