Dubai’s residential market ended 2025 in a strong but more measured upcycle, with villas continuing to drive headline performance, according to Al Bayan, citing ValuStrat’s December 2025 research.
ValuStrat’s citywide index reached 240.4 points in December (January 2021 = 100), up 1.3% month-on-month and 19.8% year-on-year. Villa values climbed to 323.9 points, with capital values up 1.7% MoM and 25.1% YoY. ValuStrat notes that Dubai’s freehold villas are now ~211% above post-pandemic levels and ~89% above the 2014 peak, underlining sustained demand for larger-format homes and supply-constrained communities.
Apartment values rose more slowly: +0.9% MoM with 14.2% YoY growth, sitting ~85% above post-pandemic levels and ~2% above the 2014 peak. Performance at the top end remained active, with 27 ultra-prime transactions above AED30m, including 10 above AED50m, concentrated in established luxury districts.
The report also highlights pricing leadership in prime locations, with Palm Jumeirah registering the highest average villa price per sq ft, while Burj Khalifa led apartment pricing. Overall, the data points to a market that remains resilient, increasingly driven by end-user preference, long-term capital, and quality-led segmentation.
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10 Jan 2026
