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Dubai Real Estate Market Hits Record AED326.7 Billion In H1 2025, Here’s What’s Driving Growth

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Dubai’s real estate market has marked an unprecedented first half of 2025, driven by rapid population growth, rising property values, and a surge in off-plan investments. According to a ValuStrat report analyzed by DURAR Group, residential sales reached a historic AED 326.7 billion across nearly 99,000 transactions, showcasing remarkable momentum and investor confidence.

The city also welcomed nearly 90,000 new residents in the first quarter alone, intensifying demand in an already supply-constrained housing market. Despite only 12,000 homes being delivered this year, soaring demand has pushed sales prices and rents higher, particularly in prime villa locations and key apartment districts.

Mohammed Miqdadi, CEO of DURAR Group, highlighted the evolving sophistication of buyers, who now prioritize design, global outlook, and long-term value in future-forward communities. Villa segments in areas such as Jumeirah Islands, Palm Jumeirah, and Emirates Hills led capital appreciation, while apartment hotspots like The Greens and Dubailand saw steady demand.

Off-plan sales dominated, accounting for more than two-thirds of all residential transactions, fueled by flexible payment plans and new launches in popular areas like JVC, Dubai South, and Emaar South.

Looking forward, DURAR Group anticipates growth to moderate but remain positive through the remainder of 2025. Miqdadi emphasized the need for developers to balance scalability with sustainability to meet Dubai’s evolving housing needs and ensure the city’s continued success.