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Dubai’s residential real estate market reached a historic milestone in the second quarter of 2025, with transactions surpassing 50,000 for the first time in a single quarter. The figure represents a 21% year-on-year increase, according to new research by property consultancy Savills, and underscores the city’s growing appeal to both investors and residents.
The surge reflects a combination of factors, including sustained population growth, a steady influx of high-net-worth individuals, and investor confidence in Dubai’s long-term economic outlook. Analysts say the trend is supported by strong government-backed infrastructure initiatives and favorable regulatory policies, even as global property markets remain mixed.
Off-plan purchases continued to dominate activity, accounting for 70% of deals during the period. Apartments led the market, representing 80% of all transactions, up from 68% a year earlier and 55% in 2023. The steady shift toward new developments highlights both the appetite for modern housing and developers’ ability to meet demand.
The busiest region was Zone 6, which covers areas along the Al Khail corridor, including Jumeirah Village Circle, Dubailand, and Damac Hills 2. This zone accounted for 53% of all residential deals, boosted by major new launches such as Emaar’s Parkwood and Danube’s Timez. Together, these projects comprised nearly half of all residential supply introduced in the quarter.
Despite the strength of the off-plan segment, ready homes also showed resilience. More than 15,000 completed units were sold, with 83% of them apartments. The trend reflects ongoing demand for accessible housing and an expanding middle-income buyer base. Villas and townhouses remained steady, with about 10,000 sales registered in Q2.
Supply responded to demand. More than 20,000 new units entered the market during the quarter, a 66% increase compared with the same period in 2024. Apartments made up 91% of new launches, with upcoming projects at Jebel Ali Racecourse and Jumeirah Golf Estates Phase 2 expected to further expand the city’s housing pipeline.
Dubai’s prime residential sector also showed momentum, with more than 2,500 properties sold above Dh10 million. That volume more than doubled the level recorded in Q2 2024. Villas dominated this premium segment, making up 76% of transactions, with 80% of deals in the off-plan category. Key luxury destinations included Acres, Palm Jebel Ali, and The Oasis.
In total, Dubai added around 6,000 residential units in Q2, bringing the year’s first-half completions to 13,500. Nearly 20,000 more units are expected to be delivered in the second half of the year, underscoring the city’s robust development pipeline.
Market stability continues to be underpinned by government initiatives. The Dh20.6 billion Dubai Metro Blue Line, announced in May and set for completion by 2029, is expected to improve connectivity between key districts. Meanwhile, the Dubai Land Department’s First Time Buyer Scheme, which offers flexible payment options and discounted fees, aims to support homeownership and widen access.
Price movements were mixed across segments. Villas recorded an average 4% increase in value, with prime neighborhoods seeing gains of up to 10%. Apartments remained broadly stable compared with the previous year, supported by strong supply and demand equilibrium.
Dubai continues to be a magnet for global wealth. Research by Henley & Partners projects that the emirate will attract nearly 9,800 millionaires in 2025, cementing its position as one of the world’s most attractive destinations for high-net-worth individuals. Savills’ Dynamic Wealth Index also ranked Dubai as the top global city for attracting and nurturing individual wealth, citing quality of life, tax advantages, and a stable investment climate.
Industry observers say the outlook remains positive despite global headwinds. “The emirate’s political stability, competitive regulatory environment, and business-friendly ecosystem are expected to support ongoing population and investment inflows,” wrote Andrew Cummings, Head of Residential Agency Middle East, and Rachael Kennerley, Research Director at Savills, in their latest report.
With record-breaking sales, expanding supply, and robust infrastructure plans, the Dubai residential real estate market in 2025 appears positioned for continued growth. Whether the pace can be sustained will depend on developers’ ability to balance demand with affordability and on policymakers’ commitment to long-term housing strategies.
A combination of strong population growth, rising investor confidence, and an influx of high-net-worth individuals is propelling the market. Favourable government policies and infrastructure projects further support the sector.
Dubai recorded over 50,000 residential sales during the second quarter of 2025, setting a new all-time quarterly record and marking a 21% increase compared to the same period in 2024.
Zone 6-encompassing locations like Jumeirah Village Circle, Dubailand, and Damac Hills 2-was the most active region, accounting for approximately 53% of total residential transactions. Major new developments such as Emaar’s Parkwood and Danube’s Times drove much of this activity.
Off-plan properties were dominant, making up 70% of all transactions. However, over 15,000 completed units also sold in the quarter, proving that both segments remain healthy depending on buyer preferences and price levels.
Apartment prices remained relatively stable year-on-year, while villa values rose about 4% on average, with premium neighborhoods seeing gains as high as 10%.
