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The Dubai property market held steady in August 2025 despite the seasonal slowdown, with both sales and rentals showing resilience. Market data pointed to a city that continues to attract investors and tenants even as transaction values softened on a monthly basis.
Figures from Betterhomes showed 17,710 sales transactions were completed in August, a 5.9 percent decline from July. The total value of deals came in at Dh42 billion, down 18.6 percent month-on-month. Yet the yearly picture was stronger, with volumes and values each up 10 percent compared with August 2024.
Average sales prices also showed no signs of retreat. The cost per square foot rose 2.1 percent month-on-month to Dh1,932, underscoring continued demand across key communities. Developers including Binghatti, Emaar, and Sobha Group accounted for the bulk of off-plan activity, which represented 73 percent of overall transactions.
Apartments remained the most traded asset, making up nearly half of all sales. Townhouses and villas were also in demand, with four-bedroom layouts particularly favored by families. The strength of this segment reflects a wider trend of end-user activity alongside investor appetite.
Buyer enquiries offered another window into market sentiment. Betterhomes recorded an 11 percent increase in leads in August compared with the prior month. Investors comprised 59 percent of buyer profiles, while end users made up the remaining 41 percent. The report also noted that 58 percent of purchases were mortgage-backed, suggesting an increasingly mature lending environment.
“The 10 percent year-on-year growth in transaction value indicates that Dubai remains a magnet for both investors and families,” said Cristopher Cina, director of sales at Betterhomes. He added that buyer enquiries rose even as overall transactions dipped slightly, pointing to enduring confidence.
Leasing activity also gained ground. A total of 41,504 rental agreements were registered during the month, up 5.7 percent from July. Of these, 18,186 were new contracts, representing 44 percent of total activity and highlighting a steady stream of fresh demand. Renewals accounted for the remainder, suggesting many tenants are choosing to stay while others are entering the market for the first time.
Rental prices varied across communities. Villas in Jumeirah saw average annual rents rise 4.2 percent to Dh539,000. Apartments in Mirdif experienced a sharper 5.5 percent increase, with annual rents climbing to Dh88,000. Apartments dominated leasing demand with nearly half of all contracts, followed by townhouses at 32 percent.
Rupert Simmonds, director of leasing at Betterhomes, described August as “a month of fresh starts.” He said tenant enquiries climbed 38 percent, underlining Dubai’s position as one of the world’s most competitive rental markets. Payment flexibility also remained a feature, with one-check and four-check options accounting for the majority of lease agreements.
In terms of geography, Dubai Marina, Business Bay, and Jumeirah Village Circle remained the most popular apartment hubs. Among villa communities, demand was strongest in Arabian Ranches, Dubai Hills Estate, and Jumeirah Golf Estates. These clusters mirror broader lifestyle preferences, with proximity to schools, parks, and transport weighing heavily in tenant and buyer decisions.
Official numbers echoed the private sector data. The Dubai Land Department reported 18,715 sales transactions worth more than Dh51 billion in August, up 8.7 percent from a year earlier. While villa sales slowed, apartment deals surged by about 30 percent compared with August 2024.
Analysts including CBRE and ValuStrat observed that average residential prices are still rising at double-digit annual rates, while rental yields remain among the highest globally. Dubai’s population recently surpassed four million, providing an underlying driver for sustained housing demand.
Some experts cautioned that prices may ease in the coming year as supply expands. Developers are projected to deliver around 70,000 new units before the end of 2025. Even so, steady international investment inflows and a growing workforce are expected to support the market’s balance.
For now, the evidence from August indicates that the Dubai property market remains resilient. Investors continue to view the city as a secure destination, while tenants show willingness to pay rising rents to secure well-located homes.
There were 17,710 transactions worth Dh42 billion, according to Betterhomes.
The average sales price reached Dh1,932, a 2.1 percent monthly increase.
Apartments led the market, accounting for almost half of all sales.
There were 41,504 rental agreements, with rents rising in communities like Jumeirah and Mirdif.
Analysts expect growth to continue, though increased supply in 2025 may ease price momentum.
