Dubai’s residential property market ended December 2025 on a stronger-than-expected note, with prices continuing to rise across both villas and apartments, according to ValuStrat data cited by Khaleej Times.
The ValuStrat Price Index (VPI) reached 240.4 points, recording 1.3% month-on-month growth and 19.8% annual appreciation, exceeding earlier expectations of 18%. Growth remained uneven across asset classes, with villas clearly outperforming apartments.
Villa values increased 25.1% year-on-year to 323.9 points, driven by sustained demand in established, low-supply communities. Freehold villas are now valued 211% above post-pandemic levels and 89% higher than the 2014 market peak, highlighting a structural shift toward long-term ownership and family-oriented housing.
Apartment prices rose more moderately, posting 14.2% annual growth to 185.9 points. Values are now 85% above post-pandemic levels and marginally above the previous 2014 peak, supported by steady demand in mid-market locations such as Remraam, Dubai Silicon Oasis, The Greens, and Town Square.
Transaction activity remained strong, with off-plan sales accounting for 76% of all residential deals in December. The luxury segment also stayed active, with 27 ready-home transactions above Dh30 million, including 10 sales exceeding Dh50 million, concentrated in prime neighbourhoods.
Overall, ValuStrat’s latest data suggests Dubai’s housing market is moving into 2026 from a position of strength, with growth moderating but remaining firmly underpinned by demand and investor confidence.
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07 Jan 2026
