Dubai Real Estate Market Hits $88.76 Billion in H1 2025 as Population Surge Fuels Record Demand |

Dubai skyline representing real estate growth in H1 2025

Dubai’s Real Estate Sales Soar to $88.76 Billion in First Half of 2025

Dubai’s property market achieved a historic milestone in the first half of 2025, with real estate sales climbing to an unprecedented AED 326.7 billion ($88.76 billion). The record-breaking figure comes as population growth, rising capital values, and surging off-plan demand reshape the emirate’s real estate landscape.

According to the latest ValuStrat report, nearly 99,000 residential transactions were recorded in the first six months of the year—marking a sharp increase in both volume and value compared to previous years.

Population Growth Drives Unmatched Housing Demand

Dubai welcomed nearly 90,000 new residents in Q1 2025 alone, creating substantial demand in a market already short on supply. With only 12,000 homes delivered so far this year, the gap between demand and inventory has widened, placing upward pressure on both property prices and rents across the city.

“The first half of 2025 has surpassed all expectations, reflecting both the resilience and ambition of Dubai’s property sector,” said Mohammed Miqdadi, CEO of DURAR Group. “Buyers today are more design-conscious, globally minded, and focused on lifestyle and long-term value.”

Capital Appreciation Surges Across Villas and Prime Areas

Residential prices continued their upward trend, with villas in Dubai leading the capital value surge. Key districts such as Jumeirah Islands, Palm Jumeirah, and Emirates Hills witnessed notable price increases. ValuStrat’s June report highlighted:

  • Villa prices grew 1.9% monthly, with a year-on-year increase of 28.7%

  • Apartments rose 1.1% month-on-month, with a 19.1% annual growth

Affordable yet high-demand zones like The Greens and Dubailand also registered strong interest, particularly from end-users and mid-range investors.

Off-Plan Sales Dominate with Over Two-Thirds Share

The off-plan segment has become the backbone of Dubai’s residential transactions in 2025, accounting for more than 66% of all deals in the first half. Investors and homebuyers are lured by flexible payment plans, early access pricing, and newly launched projects in key areas like:

  • Jumeirah Village Circle (JVC)

  • Dubai South

  • Emaar South

These developments align with Dubai’s future-oriented urban planning, offering integrated community living, green spaces, and tech-enabled homes.

Market Outlook: Balancing Growth with Sustainability

With rising demand and constrained supply, the next challenge for Dubai’s real estate lies in sustainable scalability. Developers are expected to focus on delivering high-quality, well-connected homes that cater to diverse buyer profiles.

“The next wave of success will be defined by how we balance scalability with sustainability, creating homes that respond to the city’s evolving population,” Miqdadi emphasized.

What was the total value of Dubai’s real estate transactions in H1 2025?

AED 326.7 billion, equivalent to $88.76 billion.

How many residential transactions were recorded in the first half of 2025?

Nearly 99,000 transactions.

What factors are driving the market boom in Dubai?

Population growth, capital value appreciation, and high demand for off-plan projects.

Which areas saw the highest capital appreciation?Which areas saw the highest capital appreciation?

Jumeirah Islands, Palm Jumeirah, Emirates Hills, The Greens, and Dubailand.

What share of sales did off-plan properties hold in H1 2025?

Over two-thirds (66%) of all residential transactions.

About the Author

CityNest Realty

Founder of CityNest Realty, a real estate brand operating in Mohali and Dubai. Specializing in property sales, investments, and market insights with a focus on trust, value, and strategic guidance to help clients make informed real estate decisions.

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