Dubai’s real estate market posted its strongest first-half performance on record in 2025, as surging population growth, off-plan investments, and rising capital values fuelled unprecedented transaction levels.
According to a new ValuStrat report analysed by real estate developer DURAR Group, residential property sales reached AED326.7bn ($89bn) across nearly 99,000 transactions between January and June 2025.
Dubai welcomed nearly 90,000 new residents in Q1 alone, adding pressure to an already tight housing supply.
Dubai real estate growth forecast
With only 12,000 new homes delivered in the first half of the year, demand has significantly outstripped supply—pushing sales prices and rental values higher across the city.
Mohammed Miqdadi, CEO of DURAR Group, said: “The first half of 2025 has surpassed all expectations, reflecting both the resilience and ambition of Dubai’s property sector. We’re not just seeing strong numbers, we’re witnessing a new phase of sophistication in demand.
“Buyers today are more design-conscious, globally minded, and increasingly leaning toward future-forward communities anchored in lifestyle and long-term value.”
Capital value growth was recorded across all property segments, but villas and prime areas saw the most significant gains. High-demand areas included:
- Palm Jumeirah
- Jumeirah Islands
- Emirates Hills
Apartment communities such as The Greens and Dubailand also recorded steady demand, particularly from mid-market buyers and first-time investors.
Off-plan properties continued to dominate the landscape, accounting for more than two-thirds of all residential transactions in H1 2025. Investor interest was strong in:
- Jumeirah Village Circle (JVC)
- Dubai South
- Emaar South
Flexible payment plans and attractive launch prices continue to drive demand for early-stage projects.
While growth may moderate slightly in H2, DURAR Group expects continued positive momentum through Q4 2025 as developers focus on meeting demand with more sustainable and scalable solutions.
“This is a moment of responsibility as much as opportunity,” Miqdadi added. “The next wave of success will be defined by how we balance scalability with sustainability, creating homes that respond to the city’s evolving population and anticipate how Dubai will live in the decades to come.”
