5 days ago
Oia Properties releases its H1 Residential Real Estate Market Report following record-breaking Q2 2025
H1 2025 Market Report highlights the market drivers supporting confidence and growth, key trends and best performing areas.
Data confirms Dubai's position as one of the world's most trusted and dynamic global real estate hubs.
Dubai, UAE – With the release of its H1 2025 Market Report, Oia Properties confirms that Dubai's residential real estate market has continued its meteoric rise in the first half of 2025, setting new benchmarks in transaction value, volume, and investor sentiment. According to Oia Properties, the UAE's leading residential real estate voice, the data confirms Dubai's position as one of the world's most trusted and dynamic global real estate hubs. This strength is mirrored amongst the Oia Properties Dubai office, which has experienced robust growth across H1 2015.
In H1 2025, Dubai recorded an astonishing 98,603 property sales, totaling AED 326.7 billion and representing a year-on-year increase of 40%. The second quarter alone contributed AED 184 billion from 53,118 transactions, marking the highest quarterly value ever recorded in the city's history. Both off-plan and ready markets saw strong investor participation, with average villa prices increasing by over 12%, and rental yields remaining competitive.
Moustafa Nasr, CEO, Oia Properties Dubai comments, 'Dubai is no longer secondary to New York, London and Paris in the super-prime stakes, but has earned its status as a truly global residential hub. Global investors are showing unprecidented vision and long-term confidence, and discerning residents are increasingly seeing property in Dubai as a viable long-term investment.'
However, Nasr notes, 'While Dubai's residential market is firing on all cylinders, sustained success will depend on quality over quantity. With over 70,000 new homes expected to enter the market in 2025, absorption, design standards, and community planning will be critical to sustaining buyer appetite. We are entering a more mature phase of the cycle. The next chapter for Dubai is not just about scale, but about creating meaningful places that people want to call home.'
Key Drivers of Market Success
Dubai's sustained momentum in H1 2025 can be attributed to a powerful combination of local policy, macroeconomic strength, and lifestyle appeal. Its forecast GDP growth of 4.7% in 2025 is driving job creation income stability, and consumer confidence. Investor friendly policies from the government such as the Golden Visa schemes and low taxation is being matched by population growth, which is expected to surpass four million by year-end, and leading to a boom in new, innovative development products with strong re-sale value. Critically, many new residents are high-net-worth individuals, relocating from Europe, Asia, and Russia, drawn by Dubai's safety, climate, and connectivity.
Five Key Market Trends in H1 2025:
Off-Plan Dominance: Developer-led sales surged in H1, accounting for over AED 29.7 billion in value. Flexible payment plans and buyer incentives made off-plan properties particularly attractive to first-time and overseas investors.
Rental Market Strength: Average rental prices for villas rose by 15% y-o-y, and apartments increased by 6.7%, as supply lagged behind growing population and lifestyle demand.
Surge in International Buyers: The luxury segment remains hot with European, North American, and Russian buyers seeking long-term homes and investment properties.
Tech-Driven Real Estate: Buyers are demanding digital viewings, real-time valuations, and smart home features which are all catalysts for PropTech investment.
Affordability in Emerging Communities: As central districts mature, attention is shifting to value-driven hubs like JVC, Arjan, and Dubai South, where pricing remains accessible and infrastructure is improving fast.
Oia Properties' Top Five Performing Residential Hotspots in Q2 2025
Oia Properties has identified its best-performing residential areas in terms of transaction volume and value:
Jumeirah Village Circle (JVC): Leading the market with robust off-plan and secondary sales, drawn by location, affordability and community feel.
Business Bay: Ongoing appeal to investors and renters due to proximity to Downtown and strong short-term rental returns.
Mohammed Bin Rashid City (MBR City): High-end townhouses and villas are in strong demand, particulary amongst residents looking to upgrade to larger spaces.
Dubai Hills: A consistent perfomer, know for its master-planned environment, green spaces and family appeal.
Dubai South: Driven by Expo legacy infrastructure and anticipated airport expansion, this is a future-ready investment hotspot.
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Sophie Toh | Mercury Projects | sophie@
