Dubai home prices still rising, but buyers, renters to soon get a breather
Prices have soared since 2021, but more supply and slower growth could offer relief
Dubai: Property prices across the city continued to climb in Q2 2025, though at a slower pace, especially in the apartment segment.
The latest ValuStrat Price Index (VPI) shows home values rose 4.7% in Q2, down slightly from 5% in Q1. Year-on-year, however, prices are still up nearly 24%, and more than double where they stood in early 2021.
"As supply ramps up in the second half of the year, close attention will be needed to monitor its impact on pricing dynamics. Nonetheless, the outlook remains positive across residential, office, and industrial sectors," said Haider Tuaima, Managing Director & Head of Real Estate Research at ValuStrat.
Villas still in high demand
Villas remain the top-performing segment, with average prices up 28.7% year-on-year. Some communities have seen values more than triple since 2021:
Jumeirah Islands: +284%
Palm Jumeirah: +248.6%
Arabian Ranches: +201.1%
Even in Q2 alone, villa prices jumped:
Jumeirah Islands & Palm Jumeirah: +8.5%
Emirates Hills & The Meadows: +5.5%
Mudon: Slowest at +2.1%
If you're house-hunting, expect high prices in prime villa communities, though growth is beginning to cool.
Apartment prices slowing
Apartments saw a more modest rise—3.4% in Q2, and 19.1% year-on-year. Some areas with the biggest gains last quarter include:
Remraam: +5.4%
Dubai Silicon Oasis: +5%
The Greens & Town Square: +4.5%
Palm Jumeirah: +4.2%
Slower growth was seen in Dubai Marina (+2.9%) and International City (+2.3%), giving renters and buyers in those areas a bit more breathing room.
Renters to see milder hikes
Rental prices are also up, but growth is more manageable compared to last year.
Overall rents: +1% QoQ, +6.2% YoY
Villa rents: Flat QoQ, +4.8% YoY (avg. Dh428,000)
Apartment rents: +1.2% QoQ, +7.2% YoY (avg. Dh95,500)
Average annual asking rents by unit:
Studio: Dh64,000
1-bed: Dh91,000
2-bed: Dh131,000
3-bed: Dh191,000
Villa rentals:
3-bed: Dh335,000
4-bed: Dh426,000
5-bed: Dh522,000
More homes to hit market
If you're looking to buy or rent, more choice may be on the way.
So far in 2025, over 17,000 homes have been completed, and 66,596 units are expected by year-end—65% apartments, 35% villas and townhouses.
Recent project handovers include:
JVC: 1,160 units
Arjan: 1,029 units
Dubai Science Park: 575 units
Tilal Al Ghaf (Aura): 808 villas
Damac Lagoons (Portofino 2): 61 villas
Looking ahead, nearly 200,000 homes are in the pipeline until 2029.
Off-plan sales hit record highs
Despite rising prices, buyer appetite remains strong, especially in the off-plan market:
35,700+ off-plan deals in Q2 (up 24% QoQ, 43% YoY)
Total value: Dh113 billion
Avg. price: Dh3.2 million (+32% YoY)
Top off-plan hotspots:
JVC (9.5%)
Damac Islands (7.5%)
Business Bay (5%)
Secondary market also surged with 13,691 resale deals, nearly 36.4% priced under Dh1 million—still a key entry point for budget-conscious buyers.
Cash still king, but loans rise
16,003 cash sales of ready properties (Dh37 billion)
11,589 mortgage deals (Dh24 billion)
While cash dominates, mortgage-backed transactions are climbing steadily as more residents choose long-term stays and homeownership.
What this means for you
If you’re house-hunting or renting in Dubai, the next few months could bring more choices and less aggressive price hikes, especially in non-prime areas. While villa prices remain high, slowing growth and upcoming supply may offer better deals—particularly for apartments.
Dubai’s real estate market remains on solid footing, but residents might soon find a slightly more balanced market with more listings and more negotiating power.
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