ValuStrat’s latest Dubai Q2 2025 real estate review report has revealed insightful dynamics in Dubai’s real estate market.
The report comprehensively analyses the residential, commercial, and hospitality sectors and underscores a market showing robust growth and market activity.
Ready home sales also saw a 10.4% quarterly increase, driven by robust activity in April and May, reaching a record 13,700 title deed registrations, with an average price of AED 2.7m.
The estimated number of new homes scheduled for delivery in 2025 has been revised to 66,596 units. The first half of the year saw approximately 17,500 homes completed, equivalent to less than a third of the annual forecast.
According to the ValuStrat Price Index (VPI), capital values in Dubai’s freehold residential market continued to grow, though at a slower pace compared to 2024.
Apartment prices rose by 19.1% YoY, while villa prices increased by 28.7%. This marks a slowdown compared to the same period last year, when apartment prices had risen by 23.4% and villa prices by 33.4%. Rental growth also moderated, with villa rents up 4.8% and apartment rents up 7.2% annually.
There has been a deceleration in price growth and growing affordability pressures. The quarter marked a significant milestone with nearly 37,000 off-plan transactions averaging over AED 3.1m per unit.
