Staff Report
Dubai, UAE
Dubai’s property market maintained its record-breaking performance in H1 2025 as sales transactions exceeded 98,600 in volume and Dh326.7 billion in value, exhibiting a year-on-year (YoY) spike of 23 percent and 40 percent, respectively, from H1 2024. This demonstrates the market’s upward momentum underpinned by strong monthly transactions following the Dh761 billion transaction milestone in 2024.
Matthew Green, Head of Research at CBRE MENA, said, “Dubai continues to see momentum across the residential sales market, following new records set in April and May. During May, the total transaction value of sales reached close to Dh67 billion, representing a near 50% increase on the same month last year, whilst also beating the previous monthly record set in April. The market also saw very high sales volumes in May with close to 18,700 sales recorded, the second-highest month on record after October 2024.”
Meanwhile, price per square foot also grew five percent YoY from 2024 to Dh1,600 in H1 2025, indicating sustained demand. Experts attribute the uptick in figures to stabilised property prices, Dubai’s thriving economic conditions, and increased investor confidence.
“The 6% increase in price per square foot to Dh1,600 indicates a positive outlook and sustained investor interest, likely driven by anticipated appreciation and the overall robust economic environment,” Muhammad Yousuf Jafrani, Founder and Chairman of Amirah Developments, said.
Furthermore, new launches buoyed the sector during the first half of 2025, aiding in the supply demand balance. Dubai saw the foray of international developers which drove foreign investments. On the other hand, Azizi, Damac, Deyaar, and other key industry players unveiled projects early in 2025. Rising local developers also joined the bandwagon to benefit from robust market conditions. Amirah Developments launched its inaugural project in Dubai Islands in May, achieving 60 percent sales by end of H1 2025.
“Selling approximately 60% of Bonds Avenue Residences during this period aligns with the market’s upward momentum. Our experience suggests that the market projections remain optimistic, with continued demand expected due to Dubai’s reputation as a global real estate hub, upcoming infrastructure developments, and diversified lifestyle offerings. These elements collectively support favourable outlooks for both sales volume and value in the coming months,” Yousuf Jafrani further commented.
Strategic real estate diversification initiatives are poised to stimulate market activity in the next half of 2025. Dubai Land Department launched the real estate tokenisation platform that will create a new demographic of small-sized investors and make property ownership more accessible. The recently unveiled new homeownership programme for UAE tenants will further boost investment by offering services like priority access to off-plan launches, preferential pricing for units up to Dh5 million, and tailored mortgage solutions.
“The continued growth in demand, despite the wider geo-political landscape, is testament to the strength of investor conviction in Dubai’s burgeoning real estate sector. With economic growth remaining strong, at a projected 5.0% GDP growth this year led by a buoyant non-oil sector, the outlook for H2 also remains positive, albeit some slowdown in activity during the summer months may be expected given recent regional challenges,” Matthew Green concluded.
Ends
Also read: Dubai property transactions exceed Dh761 bn in 2024 surpassing GDP of 140 countries
