Dubai real estate: Property market sales surge 46% as market value hits $41.3bn in Q2 2025
Transaction volumes rose 25 per cent to reach 50,485 units during the same period, Betterhomes Shaping Skylines | Q2 2025 Dubai Residential Real Estate Market
The figures build on growth from the first quarter, with quarter-on-quarter increases of 33 per cent in value and 19 per cent in volume. The performance reinforces Dubai's position as a key property hub in the region.
Dubai real estate transactions rise 25% year-on-year with 50,485 units sold
'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 at Betterhomes said.
Apartments accounted for 80 per cent of total transactions, contributing over 40,000 units sold and generating AED81 billion in sales value.
The segment showed growth of 21 per cent year-on-year across both secondary and off-plan transactions.
Off-plan apartment sales increased 30 per cent quarter-on-quarter, with secondary apartments rising 23 per cent in value to reach AED21.17 billion.
Off-plan transactions totalled AED60.15 billion, representing 37 per cent growth compared to Q2 2024.
Jumeirah Village Circle emerged as the top performer for off-plan apartments, accounting for 12.2 per cent of total off-plan transactions.
Business Bay followed with 6.4 per cent, while Dubai Residence Complex contributed 5.3 per cent.
Two-bedroom apartments represented the highest contribution to off-plan transaction value at 33 per cent, with one-bedroom apartments at 30 per cent and studios at 10 per cent. The average price per square foot for off-plan transactions stood at AED2,023.
In the secondary apartment market, JVC led with 11.2 per cent of transactions, followed by Business Bay at 7.5 per cent and Dubai Marina at 5.8 per cent.
Two-bedroom apartments again dominated value contribution at 36 per cent, with the average price per square foot at AED1,600.
Dubai villa sales jump 80% as secondary market outperforms off-plan developments
Secondary villa and townhouse sales recorded 80 per cent year-on-year growth, reaching AED62.4 billion. Quarter-on-quarter growth reached 49 per cent compared to Q1 2025.
Off-plan villa and townhouse sales declined 2 per cent year-on-year to AED8.06 billion and fell 32 per cent quarter-on-quarter from AED11.8 billion in Q1 2025.
'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. This upcoming supply is well-aligned with the city's growing population and strong investor appetite. Demand remains robust particularly for apartments and ready villas with healthy absorption of new launches. Both Q3 and the second half of 2025 are expected to reflect positive market sentiment, supported by a resilient economy, sustained end-user demand, and attractive rental yields,' Christopher Cina, Director of Sales at Betterhomes added.
The Valley accounted for 29.7 per cent of off-plan villa and townhouse transactions, followed by EMAAR South with 15.5 per cent and Athlon by Aldar at 8 per cent. Townhouses drove 75 per cent of off-plan value in this segment.
For secondary sales, Damac Islands led with 30 per cent of transactions, followed by Grand Polo Club and Resort at 9.4 per cent. Villas accounted for 77 per cent of secondary transaction value, while townhouses contributed 23 per cent.
The citywide average price reached AED1,582 per square foot, representing a 6 per cent increase compared to the second half of 2024 and an 18 per cent rise from Q1 2024. Prices now stand 90 per cent above pandemic-era lows of AED833.
Off-plan apartment prices reached AED2,023 per square foot, marking a 12.5 per cent increase since early 2023. Secondary apartment prices climbed 23 per cent over the same period to AED1,599 per square foot.
Secondary villa and townhouse prices reached AED1,557 per square foot, reflecting 9 per cent quarterly growth and 6 per cent annual growth. Off-plan prices in this segment reached AED1,368 per square foot, with 4 per cent quarterly and 19 per cent annual growth.
Approximately 20,000 units were delivered in the first half of 2025, with 70,000 additional units expected in the second half. The delivery pipeline extending to 2027 includes over 200,000 units.
Jumeirah Village Circle led community handovers in H1 2025, accounting for 20 per cent of completions with over 4,130 units. Sobha Hartland followed with 2,200 units (11 per cent), while Mohammed Bin Rashid City ranked third with 1,600 units (8 per cent).
Over 1,300 villas and approximately 3,000 townhouses were delivered in H1 2025. An additional 3,800 villas and 9,000 townhouses are expected in the second half of 2025.
'At the top end, the prime market remains extremely active. AED 15m+ transactions more than doubled compared to last year, as global buyers continue to view Dubai as a long-term investment and not a short-term play, for a variety of domestic and international reasons,' Harding added.
The launch of PRIME by Betterhomes addresses the ultra-premium segment, focusing on luxury residences that offer exclusive properties.
Total rental contracts reached 107,830 in Q2 2025, reflecting a 2 per cent year-on-year increase.
New rental contracts declined 2 per cent annually and 13 per cent quarterly, while renewed contracts increased 4 per cent year-on-year.
'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. As we move into Q3 2025, we expect this momentum to continue, particularly in established and emerging suburban communities. With tenant enquiries holding strong and rental prices remaining stable, the leasing market is well-positioned to see healthy absorption of new stock, supported by a maturing tenant base and lifestyle-driven relocations,' Rupert Simmonds, Director of Leasing at Betterhomes explained.
Betterhomes recorded 111 per cent year-on-year growth in total leasing transactions, with apartments up 104 per cent, villas up 97 per cent, and townhouses rising 237 per cent.
The UAE's GDP growth reached 3.8 per cent in 2024, with forecasts projecting increases to 4.2 per cent in 2025 and 5 per cent in 2026.
UK buyers top Dubai property investments as international demand grows 56%
Dubai's population has grown from 3.8 million to 4.1 million residents, now housing one-third of the UAE's population.
Dubai's tourism sector demonstrated growth of 7 per cent year-on-year until April 2025, with hotel occupancy levels reaching 84 per cent in the first four months. Western Europe remains the largest source market, contributing 23 per cent of total arrivals.
At Betterhomes, investors accounted for 58 per cent of all transactions in Q2, up from 50 per cent in Q1. Cash transactions rose to 52 per cent in Q2 2025, up from 42 per cent in Q1.
The United Kingdom claimed the top position among buyer nationalities at Betterhomes, with UK buyer activity growing 56 per cent quarter-on-quarter. India and Pakistan maintained second and third positions respectively.
'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 concluded.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
16 minutes ago
- Khaleej Times
Dubai: Azizi set to deliver nearly 7,000 units this year
Azizi Developments, the Dubai-based developer, is on track to deliver 25 new projects this year, with 6,979 units across key developments such as Riviera Phase 4, Azizi Venice, Creek Views III, Vista, and Amber, the company CEO said. 'Last year, we've completed 19 projects across Dubai, delivering over 8.4 million sq. ft. of built-up area across 316 floors, with more than 10,229 units sold - up 15.8 per cent year-on-year - worth more than Dh10 billion. We plan on surpassing and approximately doubling most of these figures in 2025. We currently have around 150,000 units under construction, valued at several tens of billions of US dollars. We have already delivered more than 45,000 homes to local and international investors and end users from over 100 nationalities,' Farhad Azizi, CEO of the Azizi group of companies, told Khaleej Times in an interview. The company's portfolio includes landmark projects such as Burj Azizi, set to become the world's second tallest tower on Sheikh Zayed Road; Azizi Riviera, a 16,000-home French Mediterranean-inspired community in MBR City; Azizi Venice, a 36,000-home lagoon-centric development in Dubai South; and Azizi Milan, a master-planned community of over 81,000 homes along Mohammed bin Zayed Road. 'Our focus is on creating fully integrated, sustainable and iconic communities that go beyond mere housing and truly enrich the lives of those who invest and reside there,' Azizi said. Property values in Dubai have skyrocketed 70 per cent in four years according to Knight Frank, now also drawing in big name global investors including wall street giants. The emirate has seen more office and hotel deals in the past 2 years than in the past decade combined. Complementing this is the UAE's tourism boom, which contributed Dh257.3 billion (USD 70.1 billion) to the national economy in 2024—accounting for 13 per cent of GDP—as noted by the World Travel & Tourism Council (WTTC). Dubai's property market reached a new milestone in the first half of 2025, with 98,603 real estate transactions totaling Dh326.7 billion ($89 billion), marking its strongest half-year performance on record, as per the latest figures from fäm Properties. This year, Dubai has welcomed nearly 90,000 new residents in Q1, placing growing pressure on housing supply. Only 12,000 new homes were delivered in that period, fueling further increases in both prices and rents. This widening gap between supply and demand highlights strong market fundamentals and presents a compelling case for continued residential development and investment. According to the latest data from Dubai Land Department, the UAE real estate sector is projected to witness an 80 per cent increase in delivered units this year compared to 2024, helping to satiate the surging demand. 'Dubai's property sector will continue to thrive. This is driven primarily by the city's many merits, with it being the best place to visit, live and work in. Its world-renowned safety, outstanding legal and regulatory framework, welcoming, tax-free, opportunity-rich and highly business- and investment-conducive environment, and its status as the world's most popular tourist destination, all contribute to the surging population (expected to hit 5.8 million by 2040) and visitors, and as such, to the exponentially growing popularity of real estate here,' Azizi said. Minor price corrections may take place in the remaining months of 2025 or beyond, as part of any healthy market cycle, but these will be overshadowed by the mid- to long-term upward trajectory in property values, he added. The company is actively exploring and working on blockchain-based innovations, including tokensiation, for its projects. 'Tokenization is a natural progression in an industry that's rapidly evolving to become more safeguarded, accessible, transparent, and technology-driven. By turning real estate assets into digital tokens on a blockchain, the industry also opens its doors for a broader range of investors to participate—making ownership more inclusive while transactions are becoming more efficient. Tokenization has the potential to simplify traditionally complex processes, entails lower barriers to entry, and builds greater trust through secure, transparent records and transactions. 'I see tokenization becoming a fundamental part of how property is bought, sold, and held—particularly in forward-thinking cities like Dubai that are setting the pace for digital transformation in real estate. Moreover, we are also engaging in strategic partnerships that enable secure cryptocurrency payments, particularly in markets where digital assets are gaining traction,' Azizi said. Beyond the UAE, Azizi has set sights on international markets as well, with the recent launch of its first project in Germany. 'With our first project in Germany, which was a test-run in one of the most stable and mature European markets, already successfully having been completed and handed over, and a project in France currently being underway, we are also exploring other lucrative markets, including the UK where will soon be launching 5-6 high rise towers in Central London, in a prime area right on River Thames, with more than 1.5 million square feet of net sellable area, Australia, Canada and the US, amongst others,' Azizi said.
Khaleej Times
16 minutes ago
- Khaleej Times
UAE navigates global tariff storm with oil stability and fiscal strength
As global markets brace for a new wave of US tariffs and shifting Opec+ production strategies, the UAE appears firmly grounded, thanks to strategic oil exemptions, fiscal resilience, and a diversified economy, analysts say. With President Donald Trump reinstating a hardline trade agenda, a series of sweeping tariffs are scheduled to take effect on August 1. These include duties of up to 50 per cent on copper and significant increases on imports from Brazil, Japan, South Korea, and 14 other nations. Analysts fear escalating trade tensions could disrupt global supply chains and stoke inflationary pressure across import-heavy economies. Yet amid this volatility, the UAE stands out as an outlier. According to Razan Hilal, Market Analyst, CMT at 'While global headlines focus on tariff escalation, the exemption of crude oil from US tariffs protects a key revenue stream for the UAE.' This safeguard ensures that the UAE's vital energy sector remains insulated from a major external shock, allowing the country to maintain stable export flows at a time when volatility is the global norm. Concurrently, the latest developments within Opec+ may play in the UAE's favour. A subset of the alliance, including the UAE, has announced an unexpected increase of 548,000 barrels per day in August as part of a gradual unwind of voluntary production cuts. With Brent crude trading above $68 and WTI maintaining support above $67, Hilal sees a strong fiscal upside. 'Recovering global oil demand and rising production are set to support fiscal inflows and growth momentum,' she said. At the monetary level, currency dynamics are adding nuance to the UAE's economic outlook. Hilal highlights the precarious position of the US dollar: 'The US dollar hovers just above a 17-year trendline extending from the 2008 lows. A breakdown below this level could strain the dirham peg and amplify import-driven inflation.' That said, she notes, if the dollar index (DXY) stays above the 96-zone, the dirham may recover in H2 2025, particularly against the euro and pound. What underpins the UAE's relative calm amid these global tremors? Hilal points to a blend of strategic buffers: 'Supported by economic diversification, oil price stability, and a proactive fiscal stance, the UAE remains well-positioned to absorb external shocks and preserve currency stability.' In a global landscape dominated by tariff tension and fluctuating energy dynamics, the UAE's steady footing showcases the advantage of long-term planning and diversified resilience. As other economies scramble for clarity, the Emirates are focused on execution, Hilal noted.
Al Etihad
an hour ago
- Al Etihad
Calidus showcases advanced defence technologies at IDEF 2025
20 July 2025 20:27 ABU DHABI (WAM) Calidus Holding Group, a UAE-based defence company, is participating in the 17th edition of the International Defence Industry Fair (IDEF 2025), held at the Istanbul Expo Center in Türkiye from July company is exhibiting under the UAE National Pavilion, which is organised and overseen by the Tawazun Council for Defence and Security participation at IDEF 2025 is its largest and most diverse to date, featuring more than 15 advanced products and technologies displayed on a dedicated platform under the UAE National Group aims through its participation to showcase its capabilities in the defence industry and represent national products on international platforms, reflecting the progress and development of the UAE's defence sector, which now rivals global the key highlights at the exhibition are the MATV armoured combat support vehicle with the Al Heda missile launch platform, six different models of the Al Heda missile system, a scaled model of the CLS military vehicle manufacturing line, a cockpit simulator for the B-250 aircraft, as well as scaled models of the B-250 light attack aircraft and the B-250T advanced trainer. Calidus is also showcasing its solutions in subcomponent company is also highlighting its capabilities in electro-optical (EO) systems, including infrared technologies. These systems are a critical element in modern defence applications, enabling highly accurate detection and tracking across various environments, including low-visibility conditions. The systems combine thermal imaging, optical sensing, and laser rangefinding to deliver advanced situational awareness that enhances operational effectiveness and targeting part of its upcoming showcase, Calidus will present a specialised model of its locally produced military chassis, designed for armoured tactical vehicles. This structure is engineered for high durability and can withstand heavy loads and harsh operating conditions, with configurable options to support combat support needs including armour systems, weapon integration, and mine Khalifa Murad Al Blooshi, Managing Director and CEO of Calidus Holding Group, said the Group's participation under the UAE National Pavilion is part of its ongoing efforts to enhance defence industrial collaboration, share expertise, and build partnerships with global companies and institutions. It is also an opportunity to present technological capabilities that reflect the progress of the UAE's defence industry and strengthen its international added, 'Through this participation, we aim to amplify the UAE's visibility via Calidus' advanced defence products, explore promising opportunities through direct engagements with leaders and industry representatives, and present our innovative, proudly homegrown solutions designed to meet national needs and expand into global markets. We also seek to reinforce local supply chains to support strategic autonomy and self-reliance in this vital sector.'He explained that Calidus focuses through its exhibition and conference participation on technology transfer to keep pace with global advancements, showcasing national defence products driven by innovation, AI integration, and regional and international expansion—strengthening the UAE's position as a global hub in the defence manufacturing reaffirmed that Calidus' extensive participation at the exhibition reflects its commitment to offering integrated defence solutions and UAE-made innovations that support the vision of building a sustainable defence industry. These efforts are backed by ambitious plans to launch next-generation systems powered by artificial intelligence, all designed, developed, and assembled in the company's facilities by Emirati professionals.
