Dubai’s residential market closed 2025 with stronger-than-expected price performance, according to Economy Middle East, citing ValuStrat’s latest Price Index.
ValuStrat’s December 2025 data shows overall residential capital values rose 19.8% year-on-year, outperforming earlier market forecasts. The ValuStrat Price Index reached 240.4 points, reflecting a modest monthly increase of 1.3% as the market continued to expand at a more measured pace.
Villas remained the clear outperformer. Villa values reached 323.9 index points, posting annual growth of 25.1% and standing 211% above post-pandemic levels, and 89% higher than the previous 2014 market peak. Strong annual gains were recorded in Jumeirah Islands, Palm Jumeirah, Green Community West and The Meadows, reinforcing the appeal of established, supply-constrained communities.
Apartment performance was more moderate. Prices rose 0.9% month-on-month, while annual growth eased to 14.2%. However, apartment values now stand 85% above post-pandemic levels and have surpassed the 2014 peak for the first time. Notable annual gains were observed in Remraam, Dubai Silicon Oasis, The Greens and Dubailand Residence Complex, reflecting sustained demand in mid-market locations.
Transaction data pointed to continued strength in off-plan activity. Oqood registrations accounted for 76% of residential sales and were 30.8% higher year-on-year. Ultra-prime demand also remained resilient, with multiple transactions above AED 30 million across Palm Jumeirah, Dubai Hills Estate, Al Barari and Emirates Hills.
Taken together, ValuStrat’s December figures highlight a market that remains fundamentally strong, with growth increasingly driven by location quality, product differentiation and long-term end-user demand rather than speculative momentum."
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