The market demonstrated resilience during June’s regional unrest, reinforcing Dubai’s position as a destination for both capital and lifestyle buyers, according to Betterhomes’ latest quarterly report.
“Dubai’s real estate market maintained its momentum in Q2, with transactions up 25 per cent year-on-year and total value rising 46 per cent. Apartments and off-plan led activity, while the luxury segment hit record highs. Even during June’s regional unrest, the market remained resilient; reinforcing Dubai’s position as a safe, stable destination for capital and lifestyle buyers alike,” Louis Harding, Chief Executive Officer of Betterhomes said.
Apartments drive 80% of Dubai property market as off-plan sales jump 30% in Q2 2025
Apartments accounted for 80 per cent of all transactions with over 40,000 units sold, generating AED81 billion in sales value. The sector continued growth with both secondary and off-plan transactions rising 21 per cent year-on-year.
Off-plan apartment sales increased 30 per cent quarter-on-quarter, with developers launching new projects to meet market demand. Two-bedroom apartments contributed 33 per cent of off-plan transaction value, while one-bedroom apartments made up 30 per cent and studios 10 per cent.
The average price per square foot for off-plan transactions stood at AED2,023, compared to AED1,600 for secondary apartments.
Jumeirah Village Circle led off-plan apartment transactions with 12.2 per cent of the total, followed by Business Bay at 6.4 per cent and Dubai Residence Complex at 5.3 per cent.
Dubai villa prices soar 90% above pandemic lows
The villa and townhouse segment recorded contrasting performance between secondary and off-plan sales. Secondary properties saw 66 per cent growth year-on-year and 23 per cent quarterly growth, while off-plan villa transactions declined 23 per cent year-on-year and 46 per cent quarter-on-quarter.
Secondary villa and townhouse sales reached AED62.4 billion, up from AED34.6 billion in Q2 2024, representing an 80 per cent year-on-year increase.
“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,” Christopher Cina, Director of Sales at Betterhomes said.
The Valley accounted for 29.7 per cent of off-plan villa and townhouse transactions, followed by EMAAR South with 15.5 per cent. Four-bedroom homes represented 49 per cent of off-plan transaction value in this segment.
Price growth continues across segments
Dubai’s citywide average property price reached AED1,582 per square foot, representing a 6 per cent increase compared to the second half of 2024 and standing 90 per cent above pandemic-era lows of AED833.
Off-plan apartment prices recovered to AED 2,023 per square foot in Q2 2025, marking a 12.5 per cent increase since early 2023. Secondary apartment prices rose more consistently, climbing 23 per cent over the same period to AED 1,599.
Villa and townhouse prices showed strength, with secondary market prices reaching AED1,557 per square foot (up 9 per cent quarter-on-quarter) and off-plan prices at AED1,368 per square foot (up 4 per cent quarter-on-quarter).
Over 20,000 residential units were delivered in the first half of 2025, with 70,000 additional units expected in the second half. The delivery pipeline extending into 2026 and 2027 includes over 200,000 units.
Jumeirah Village Circle led community handovers in H1 2025, accounting for 20 per cent of total completions with over 4,130 units. Sobha Hartland followed with 2,200 units (11 per cent) and Mohammed Bin Rashid City with 1,600 units (8 per cent).
Over 1,300 villas and 3,000 townhouses were delivered in H1 2025, already surpassing half of 2024’s total deliveries. An additional 3,800 villas and 9,000 townhouses are expected in H2 2025.
Luxury market reaches record heights
The prime market witnessed record-breaking activity with 1,417 transactions valued at AED15 million or above, marking a 67 per cent quarter-on-quarter increase and 113 per cent year-on-year growth.
Secondary luxury properties significantly outperformed with 1,153 transactions, 4.5 times more than off-plan sales in the same quarter. This represents a 137 per cent year-on-year surge.
In the first half of 2025 alone, 2,268 luxury units transacted, representing 87 per cent of 2024’s full-year volume and nearly double 2022’s total.
Rental market shows resilience
A total of 107,830 rental contracts were recorded in Q2 2025, reflecting a 2 per cent increase year-on-year.
Across the first half of 2025, Dubai registered 236,315 rental contracts, broadly in line with H1 2024’s total of 240,270.
Renewals consistently made up 60-65 per cent of contracts, while new leases remained steady at approximately 40 per cent.
“Leasing activity at Betterhomes grew by 33 per cent quarter on-quarter, highlighting the sustained demand across Dubai s rental market. Villa and townhouse demand rose significantly by 30 per cent and 98 per cent respectively reflecting a growing preference for spacious, family-oriented living,” Rupert Simmonds, Director of Leasing at Betterhomes added.
International Buyer Interest Shifts
The United Kingdom claimed the top spot among international buyers at Betterhomes, overtaking India with 56 per cent quarter-on-quarter growth. India and Pakistan maintained second and third positions respectively, while Poland entered the top five.
Russian buyer activity eased and fell out of the top 10, while Ireland debuted at sixth place, highlighting growing European interest in Dubai real estate.
The UAE’s economy, the second largest in the GCC, recorded 3.8 per cent GDP growth in 2024, with forecasts projecting increases to 4.2 per cent in 2025 and 5 per cent in 2026.
Dubai’s population grew from 3.8 million to 4.1 million residents, now housing one-third of the UAE’s population. Private school enrollment increased 6 per cent while universities experienced a 29 per cent surge in international students.
Tourism sector growth supported the property market, with visitor numbers rising 7 per cent year-on-year until April 2025, led by a 22.7 per cent surge in April. Hotel occupancy levels reached 84 per cent in the first four months, up 7 per cent year-on-year.
Betterhomes recorded strong growth across both sales and leasing. Sales transactions rose 17 per cent quarter-on-quarter, with townhouse deals more than doubling and average sale prices growing 28 per cent year-on-year.
The leasing market saw transactions more than double year-on-year, with one and four-cheque payments accounting for nearly 60 per cent of new leases.
“As we move into Q3, the fundamentals remain strong. Population growth is steady, infrastructure continues to expand, and while more supply is coming online, demand is still outpacing it in most areas. We expect to see more negotiation, more realistic pricing, and a little more competition, which, frankly, is no bad thing,” Harding said.
