Dubai entered 2025 with strong velocity, driven by sustained demand from international buyers, a healthy off-plan pipeline, and continued confidence in the UAE’s economic outlook. The city’s property market remains one of the most dynamic globally, supported by positive GDP forecasts, tourism strength, and strategic government initiatives such as expanded residency programs and ongoing urban development.

Key 2025 Statistics - H1 Snapshot

Data from Dubai Land Department and leading market reports show H1 2025 was a record-setting period for Dubai real estate:

• Total Transaction Value: AED 431 billion
• Total Transactions: 125,538 deals
• Year-on-Year Growth: +26% compared to H1 2024
• New / Active Investors: ~95,000
• Residential Price Growth: +14% YoY
• Average Rental Growth: +7% YoY
• Prime Office Rent Growth: +23% YoY
• Hotel Occupancy: ~79%
• Tourism: +11% YoY in international arrivals

Top Performing Areas (H1 2025)

• Jumeirah Village Circle (JVC): Top-traded community with strong off-plan absorption and competitive pricing
• Business Bay: High-value and high-volume transactions, strong demand for apartments and offices
• Dubai Marina: Consistent secondary market performance, with luxury apartments performing well
• Palm Jumeirah: Luxury villas showed resilience with prices up ~14–16% YoY
• Dubai Hills Estate: High demand for villas and townhouses, strong rental growth
• MBR City: Luxury off-plan projects absorbed quickly, maintaining market momentum
• Dubai South: Affordable and mid-market off-plan apartments saw high absorption, particularly near Expo 2020 legacy districts and logistics hubs.
• Akoya Oxygen / DAMAC Hills: Off-plan villa and townhouse projects in suburban developments maintained strong demand from local and GCC buyers.

Quarterly Market Review

Q1 2025 — Strong Start

The year began with confident investor sentiment and a flurry of off-plan launches. Absorption rates were high, especially in lifestyle-focused communities.

Featured development: Sobha Hartland Phase II expansion.

Q2 2025 — Healthy Growth with Early Moderation

Residential and office markets remained active, though some communities began to show early signs of moderation. Tourism and hospitality sectors continued to thrive.

Featured development: Dubai South residential and logistics expansion.

Q3 2025 — Institutional Investment & Branded‑Residence Momentum

Mid‑year saw growing institutional capital flowing into Dubai’s real estate space, especially targeted at logistics, branded residences, and premium offices. On the product side, demand surged for upscale, branded residential projects, with a number of new launches drawing investor attention.

Featured development: Notable examples include Mercedes‑Benz Places in Downtown Dubai, Armani Beach Residences on Palm Jumeirah, and SLS Residences – The Palm

Q4 2025 — Market Maturity & Supply Watch

Looking toward year-end, the market will increasingly focus on supply absorption. Upcoming handovers in late 2025–2026 could moderate price growth in some mid-market areas, though demand for prime locations is expected to remain strong.

Featured development: Tilal Al Ghaf community expansions.

H2 Outlook & Key Considerations

While detailed H2 2025 transaction data is not yet published, the market is expected to face:

• Significant new supply: ~70,000 new units projected for H2 2025
• Price sensitivity: Potential moderation in oversupplied mid-market areas
• Rental trends: High-yield areas expected to retain strong rental growth
• Investor focus: Prime waterfront and lifestyle communities likely to outperform

Investor Takeaways

• Demand remains selective: Prime waterfront and well-priced off-plan areas lead activity.
• Rental growth supports returns: Particularly strong for villas and premium apartments.
• Supply will shape the next phase: Upcoming deliveries may moderate price momentum.
• Economic fundamentals are supportive: Rising GDP, tourism, and foreign investment bolster market confidence.
• Off-plan remains a key driver: Secondary market remains stable in core neighborhoods.

Stay tuned to H&Co’s blog for more updates on the Dubai real estate market and insights for 2026.