Dubai home prices jump 8.4% in H1: More UAE buyers, renters feel the heat
Property prices rise, mortgage demand grows, UAE residents can navigate through it better
Dubai: If you're living in the UAE and thinking about buying a home, investing in property, or even renewing your lease, the latest data from Property Monitor offers a clear picture of where Dubai’s real estate market is headed.
The headline? Prices are still climbing, off-plan demand is booming, and mortgage activity is near record highs — all pointing to a confident but evolving housing market in 2025.
How much are Dubai homes now?
From January to June 2025, the average price per square foot rose 8.4% — now at Dh1,609, up from Dh1,484 at the start of the year. Compared to this time last year, prices are up 16.1%.
For UAE residents exploring the market, here’s what median home prices looked like:
Apartments: Dh1.3 million
Townhouses: Dh2.77 million
Villas: Dh8.34 million
Tip for buyers: If you're looking for a first home or investment, apartment prices remain the most accessible entry point, while townhouses offer more space for growing families at a lower cost than villas.
Sales activity still strong — but smart
Over 93,000 property deals were recorded in the first half of the year. While this was slightly lower than the second half of 2024, it’s still up 24.3% year-on-year, indicating consistent buyer interest.
Apartments made up 77.4% of sales
Townhouses followed at 15.4%
Villas trailed with 7.1%
Off-plan is dominating UAE market
Buying a property before it’s built is becoming the go-to choice — especially for residents looking for value or newer developments in emerging areas.
Off-plan sales hit 54,785 — up 20.4% YoY
These now account for nearly 60% of all residential deals
If you include properties under construction, the share rises to 70.5%
What this means: Off-plan units often come with smaller down payments and longer payment plans — useful if you're buying while renting or trying to stretch your budget.
Resale market is heating up too
Dubai is also seeing more people reselling off-plan homes before handover, often to lock in early profits or switch investment strategies.
Resale deals jumped 19.2% YoY to 33,721
A record 29.4% of those resales were under construction properties
For sellers/investors: If you're already holding off-plan units, the resale market could offer liquidity without waiting for handover.
Mortgage demand remains high
Financing continues to be strong, with over 20,000 mortgage loans issued so far this year — up nearly 37% from last year.
Average loan size: Dh1.88 million
Average mortgaged home price: Dh2.49 million
For end-users: This suggests banks are still confident in lending — good news if you're considering buying with a mortgage in the next 6–12 months.
What the experts are saying
"We’re seeing strong confidence from both buyers and investors," said Zhann Jochinke, COO of Property Monitor. “But what stands out is the rise in off-plan resales — it signals more liquidity and a maturing market.”
What UAE residents should do now
Considering buying? With prices up and off-plan demand rising, acting early in project launches could secure better value — especially before more price hikes.
Already own property? You may be sitting on higher equity. Resale activity shows there could be demand if you’re thinking of exiting or upgrading.
Renting long-term? Expect rents to edge up, especially in new or in-demand areas. This might be the time to weigh rent vs. buy if your long-term plans are stable.
Investing? Liquidity is back in the off-plan resale market, but holding periods may shorten. Keep an eye on developer credibility, project timelines, and shifting buyer expectations.
Looking ahead: Overheating risks rise
While the market fundamentals remain strong, the report warns of potential overheating if supply isn’t well-managed. For long-term confidence, balanced growth, more choices, and pricing transparency will be key as we head into 2026.
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