Dubai's property market witnessed a 23% increase in sales in H1 2025, showing resilience as both off-plan and completed properties thrive, despite signs of market stabilization in established areas.

In the first half of 2025, Dubai's residential property market saw an impressive surge, with 91,897 sales transactions recorded. This marked a 23% rise compared to the same period last year, underscoring the market's continued vitality.

Despite signs of stabilization in established communities, both off-plan and ready properties continued to perform strongly, according to insights from Espace Real Estate. As noted by their Managing Director, John Lyons, "In H1 2025, the Dubai residential real estate market continues to demonstrate remarkable resilience and growth, supported by sustained demand."

Dubai Property Market Remains Resilient

Off-plan transactions constituted 59% of residential activities during this period, slightly down from 61% a year earlier. The report highlighted the completion of 17,013 off-plan units, which enhanced the rental stock and moderated rental price growth across various sectors, particularly in newly developed areas.

Interestingly, a shift in resident preferences has been observed, with more individuals regarding Dubai as a long-term living destination rather than a transient expat hub, contributing to market stability and measured growth.

Properties priced above AED 20 million experienced heightened transaction activity, catalyzed by changes in UK non-dom tax laws which have led many wealthy UK residents to consider relocating to Dubai.

Overall, villa and townhouse communities reported strong price increases, with 19 out of 20 areas seeing price gains, averaging a 19% rise driven by limited supply. Similarly, 10 out of 11 apartment communities noted price hikes, averaging an 8% increase compared to a 17% jump in the previous year.

Rental activity saw a slight dip in some communities due to increased market availability, although the introduction of new communities has helped balance demand and supply, preventing further accelerated rental price increases.

Dubai continues to attract international investors, with notable interest from Europe, North America, and Asia Pacific, though the UK remains the leading origin of investment. This broad interest underlines Dubai's global appeal, with ongoing market moderation expected to foster sustainable long-term growth.